The Best Philippine Stocks For Long Term Investment

43 comments

Updated: September 24, 2014

A reader recently asked me what are the best stocks in the Philippines which he can buy for long term investment, specifically those which he can use for cost averaging.

If you’re not familiar with stock market investing, then I suggest you read this blog’s primer first: How To Invest In The Stock Market

Also, if you’re not familiar with how cost averaging works, you may want to visit this article: How To Do Cost Averaging

Now for those who are already well-informed and ready to invest in the stock market, then below are sixteen Philippine companies which my stock broker, Citiseconline, has determined to be the best choices for cost averaging.

Note: Check out all the registered stock brokers in the Philippines HERE.

According to them, these companies possess the GEMSS criteria:

  • G – Growing industry
  • E – Earnings visibility
  • M – Management credibility
  • S – Superior products
  • S – Strong balance sheet

Ayala Corp. (AC)
A holding company for diversified interests in banking (BPI), real estate (ALI), and utilities/water distribution (MWC).

Ayala Land, Inc. (ALI)
Largest and most experienced real estate developer

Aboitiz Power Corp. (AP)
Leading player in the Philippine power industry – power generation and distribution in Visayas and Mindanao.

Banco De Oro (BDO)
One of the largest full-service universal banks with a corporate, retail, investment banking and insurance broking.

Bank of Philippine Islands (BPI)
One of the largest Philippine universal banks with more than 800 branches in the Philippines, Hong Kong, Italy, and the US. It provides commercial and consumer banking services, asset management and trust services, mutual funds, electronic banking, and brokerage services and investment banking services.

DMCI Holdings, Inc. (DMC)
Holding company with businesses engaged in general construction (DMCI), equity investments in infrastructure projects (PDI), heavy fabrication, industrial construction and engineering services (AG&P) and exploration, mining, development and sales of coal resources (SCC).

PNOC Energy Development Corp. (EDC)
A pioneer in geothermal energy industry involved in the exploration and production of water-based steam power to generation of electricity for commercial use.

Int’l Container Terminal Services (ICT)
Engaged in the management, operation and development of container terminals in Asia, Europe, Middle East, Africa and the Americas.

Jollibee Foods Corp. (JFC)
Develops, operates and franchises quick-service restaurants in the Philippines and overseas under the brand name Jollibee, Chowking, Greenwich, Red Ribbon Bakeshop, Inc. and many others.

Metropolitan Bank & Trust (MBT)
One of the largest Philippine banks providing deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange, trading and remittances and trust services.

Metro Pacific Investments (MPI)
Holding company for investments in real estate and infrastructure projects such as water utilities, toll operations, healthcare, power, port, and others.

Manila Water Company (MWC)
Holds exclusive rights for water delivery, sewerage and sanitation services under a 25-year concession agreement to 6Million residential, commercial and industrial customers.

SM Investments Corp. (SM)
The holding company of the SM Group of Companies engaged shopping mall development, retail, financial services, real estate development and tourism and hotels and conventions.

SM Prime Holdings (SMPH)
Engaged in developing and operating modern shopping centers with over 40 SM Supermalls in the Philippines and three SM supermalls in China.

Philippine Long Distance Tel. Co. (TEL)
Leading telecommunications provider in the Philippines with three principal business groups – fixed line, wireless, and information and communication technology.

Universal Robina Corp. (URC)
Leading branded convenience food and beverage company in the Philippines, and a major player in the Southeast Asian region and greater China.

Lastly, please note that starting this year, the Philippine stock market is now open from 9:30 AM until 3:30 PM, with a market recess between 12:00 NN until 1:30 PM. That’s more trading hours for all of us! 😀

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Disclaimer: The information above should not be taken as financial advise from an expert. This article is merely for educational purposes. Please consult a wealth manager or a certified financial planner before making any major investment decision. Please read this site’s full disclaimer here.

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Photo credit: Katrina.Tuliao

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43 comments

  1. Nice one! 🙂

    Very informative. Incidentally, I am investing in 4 of those companies mentioned above and hope to grow my money in the long run. ^_^

    Just a question, if you will sell your shares of stocks, will there be a case that your stock will not be bought? Or, there will be someone that will buy your shares?

    Thanks in advance and more power!

  3. One can avoid risk of losing money in the stock market if he/she is an investor not a trader. A trader buys or sells stocks everyday, 2 or 3 days or even a week. But an investor keeps on buying stocks whether market is down or up at a long period of time- 5 years, 10 or more. The longer you invest the more you build up your wealth!
    But there’s a better way to make your money grow even better in the stock market! This is by way of SAM – Strategic Averaging Method. It means to buy when the price of the stock is at buy-below price and sell if the stock reaches its target price. In this way, your investment can achieve its maximum growth potential. This method is applied by all the members of the truly rich club of Bro. Bo Sanchez.
    Happy Investing!

  5. Hi Fitz,
    Do you know why financial statements are now unavailable from the PSE websites? These are previously available for download but now, I can’t find them anymore.
    Thanks

  6. Hi Joel, I also don’t know. Perhaps you could call the PSE office, maybe they just moved it somewhere else. I’ll also try to research on that. Thanks for the notice.

  7. i am delighted to have stumbled upon your blog. i’m a 24-year-old lady who have just started building my wealth (lol..) anyway, i’m scheduled to attend Citesec’s seminar this coming Thurs. Zero experience when it comes to investing but been reading about it for several months now. i’ve always been so adamant when it comes to savings so i want to start as early as now. i intend to invest for long term. as a neophyte to this thing, what’s the simplest advise you can impart?

  8. Stocks are considered volatile and prices fluctuate most of the time. Risk is regarded as high in this investment. But risk can be reduced if you follow simple principle in stock investing, that is: Only buy giant companies with tract records of good earnings. Make sure these companies would last 50 to a hundred years from now. Then don’t panic when prices go down but be happy instead for you can buy more stocks at a low price. “Be greedy when others are fearful and be fearful when others are greedy” (Warren Buffett). Sell only if the price value of your stock is high. In other words, buy at a buy-below price and sell at a target price! In this way, you are sure that your investment is at a maximized growth potential.

  10. Hi,

    Been reading recently on long-term investing thru stocks. have zero-experience about this, however, i observed that you are saying “buy at a buy-below price and sell at a target price” Is there an easy way to know what is the “buy-below price” Thanks!

  12. Hi sir! I’m planning to sell my shares of stock from a utility company.I want to put it into a better investment. Been looking through equity or uitf in some banks but I’m still not sure as to whether I should venture into uitf’s? I mean how good is uitf to investor are there any other option you may want to suggest? I just want to invest long term. Many thanks. Hope you can help.

  14. sir i’ve heard about DRIP or Dividend Reinvestment Plans. meron bang ganitong company na nagoofer nito sa pinas?

    Thanks sir and God bless!

  17. Great tips for newbie investors. ALI, AP and SMPH gave me the largest returns last year. While MBT and BPI are showing promising returns. I still have not erased these stocks in the list of my future acquisitions. With these line-up of stock recommendations you can’t go wrong even if you have acquired it a bit expensive today, if you have long investment horizon, definitely you’ll profit big from these companies.

    Thanks Fitz!

  19. Hello Fritz,

    Thanks for a very informative blog.

    Would need your insights in my scenario below;
    I have an allocated monthly fund for investment purpose amounting to 15K. Currenly, 10K is into Mutual Fund and 5K to stocks. By the way, my stock investment knowledge is limited but I’m actively learning through research.

    Would it be wise to invest the 10K to stocks and only 5K to MF? Currently I only have 2 stocks at hand and my investment objective is LT (>15years).

    Thanks.

  21. Hello fitz! ur blog is a blessing to me.i know nothing on how and where to invest but am sure i want to try long term investing.which is better,investing on mutual funds or buying stocks? am eyeing PLDT,jollibee,BPI equity fund and BDO equity fund.
    thanks much fitz and god bless u!

  24. Hi Fitz. I’ve been following your blog for several months now. Very informative for me. I would just like to ask, “What are the best recession-proof stocks?” Like what happened in 2008 recession, were there any blue chip stocks or stocks or sectors that performed well in times of market crash? Cause I believe there might be a coming recession, a year or near couple of years from now. Maybe I’m wrong. I based it on history and a Jewish prophecy I’ve watched which is very interesting. Doesn’t want to sound scary. Just want to play it safe and prepare whenever that happens in the market especially with how the US is moving now. Your input would be great. TIA.

  26. Hello. Just want to ask how to buy stocks from this companies? Can I use my citiseconline account to start buying units from this companies? Thank you.

  30. HI this is Jay

    Im looking to enter the investment field and i already have a line up companies such as: BPI, jollibee, MBT and BDO. Based on the track records that they have i think i will have a long term revenue. However, Im still seeking for a professional advise. If samoeone where able to see this have a feedback and it will be really appreciated.

  31. Good Evening. To anyone who would be reading this, please help me know if it’s still a “buy” for Manila Waters for the next 3-4 years? And where can I get financial statements or analysis of the company? Thank you! This would be a great help because I’m graduating student who’s making a research.

  35. Hi sir, I would like inquire about the companies that are low lndex fund. I really have no idea.Thanks

  36. Nice blog and very informative. I am Fil-Am and retired. I am also a long term individual investor here in US and plans to stay for good in the Philippines and invest some Philippine owned companies. Is there any way i can have a little orientation or seminar regarding how they trade in the Philippines? Thank you and more power to everyone.

  37. Great blog! Just read into the comments and they are very interactive, too. May I know if there is a 2016 or 2017 updated projection list of top companies to invest in? Thanks in advance to those who will give me inputs on this.

  38. It has been confirmed via equity research that these companies are very lucrative if you thinking long term investment in stocks, 5 to 10 years or more. In fact these top companies are used by all Financial Companies(Sun Life, Manu Life, Pro Life etc.) for their peso fund units of investments. When you try to invest in stocks think of it as your retirement plan not a bank deposit that you can withdraw quickly or any time you want. For 2016 these companies still perform well(Confirmed on PSE Site 5-10 yrs. Value Chart Trends) hence invest with these companies more for a richer future. Be prudent and Happy Investing…

  39. Stocks are very simple, you know the secret? according to Mr. Warren Buffet there’s no secret? only •Identify a great company and Buy at a great price, if a stock has dropped like a rock, it may be a good time to buy rather than sell (buy low). Let it be, there’s no magic in stocks, as long you know the company will grow for 20-50 years from now. now you know enjoy and have a great investing…nardKSA

  41. I’ve been looking for the best investment and I happened to watch the show in PTV 4 talking about buying and selling stocks in ph market. Upon reading all your comments here inspired me to start buying stocks. I think I will start now to research what company is better to invest in.

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