I love Brother Bo! My mom loves him too. I remember my mom often reading Kerygma magazine and the devotional Didache when I was young. I like his great inspirational stories and meditations. I also attend “the feast” kapag free ako.
I am often asked if maganda ba ang Truly Rich Club. I honestly don’t know–yet! Today, you and me will find out the answer to that question. They say if you join TRC you will one day retire rich. I like that idea. Bo Sanchez’ Truly Rich Club deals with stock market investing/trading. I have been trading stocks for over a decade now and I’m quite knowledgeable sa ganyang field so I do believe na I can be very objective sa paghanap ng truth about TRC.
I like Bo but I will be very objective on this one. I will lay out all the facts. I will present and deal with facts. Lahat ng makikita at mababasa ninyo dito are backed by facts and proof. Will TRC make you retire rich? Lets find out!
It all started with this book. Bo Sanchez’ Maid Invests in the Stock and How My Maid Become a Millionaire.
Let us just browse to the first book for a little bit.
Ok, that’s really weird. He is giving a guarantee that 1 Million will be 64 Million at the very least compared to the bank that would only give you 4 Million. Does he have a history of making it or via computations lang. I have been trading for a while and that is a really huge guarantee. Maybe his methods/strategies are really awesome!
His helpers invest 2000 pesos a month? Huh? If you invest lower than 8k pesos or kapag bumili ka ng stock lower than 8000 pesos talo ka sa fees.
That statement is wrong. If 2000 pesos lalagay ng maid niya sa stocks per month bawasan ng fees 1k plus na lang yun. Lets assume 2000 pesos. That would only give you 576,000 pesos in 20 years. Paano naging 5 Million? Compounding? Sa stock market siya magcocompounding? Stock market don’t move up constantly. Here look. PSEI yung benchmark ng Stock Market sa Pilipinas. look how it moves. If hindi ka marunong magbasa ng chart read this muna.
I like the way Bo simplified the stock market a pag explain niya.
Peso Cost Averaging ang method ni Bo. That’s the worst method. Sa US inabandona na yan 20 years ago kasi losses makuuha mo. If you want to know the dangers of peso cost averaging read this.
I will skip some pages. Now, I understand why this book is being offered for free. This book is like an advertisement for COL Financial and TRC. If you read it malaki chance oopen ka ng Col Account at magpamember sa TRC.
Lets us move on sa TRC. So upon asking few members I found out na if you join TRC you will encounter SAM which is more or less peso cost averaging with a twist. Every month TRC issues a list of what stock to buy. There is a buy below price and a target price. I asked traders to give me examples of this SAM table and I also did a few research myself. After I collected enough data I made a model of it to see how it really performs. In order kasi to see if TRC is really making future millionaires kailangan ng proof ng performance nito. Wala namang nilalabas ang TRC na audited stock performance or even trading ledger so the best I could do is e follow ko ang monthly stock list nila at doon ako mag judge sa result. I think this will be the first time na may gagawa ng ganito. I’m the type kasi na ayaw sa ignorance. If you say your method works then lets put it to the test. If someone say na ang method mo ay hindi nagwowork then lets put it sa test. Gumawa tayo ng conclusion based sa result.
SAM was actually Col Financial’s EIP investment program back in 2010. That is how it looked. May tatlong option Conservative, Moderately Aggressive at Agressive.
Noong May 2011 TRC changed the name to SAM which stands for Strategic Averaging Method. Mula JUNE onwards SAM na ang tawag.
Lets invest sa SAM ng TRC and see how it goes. Sa mga newbies or walang gaanong idea sa stock market let me explain muna what happened noong 2008. Nakaroon ng market crash noong 2008 meaning most if not all ay bumagsak. It was due to a financial crisis. Maraming information sa internet about why nangyare yun so kindly do your own search na lang. I mentioned 2008 dahil after ng crash unti unting nagrebound ang market. Mula 2009 until 2014 kahit zero idea sa stock market ay kikita. Bakit? Lahat kasi nagtataasan noon. Kahit sino kikita during those times. To be very objective I will start using SAM sa 2015. Limang taon after nagsimulang magrebound ang market is good enough na place to conduct an objective assessment. Anything lower sa 2015 ay dahil lang sa ag rebound ng merkado.
I will start using SAM. I will put 10,000 per stock per month mula 2015 until today and see how much I earned. I will follow yung buy list ng TRC. 10k lang per stock kase may mga times na umaabot 8-12 stock reco ng SAM table in a month.
Yan ang example ng TRC SAM TABLE. All I will do is follow ang sinasabi ng nasa actions to take. I will use 10k pesos per stock per month.
Let us start sa 2015. I will only invest according sa SAM. If wala akong narecieve na SAM update kasi may mga months na naskip ng members I will not do anything. Its just three or four months out of 5 years kasi wala silang na save na SAM table.
Yan ang example kung paano ko ginamit ang SAM TABLE. I allocated 10k per stock monthly sa mga nasa list sa SAM.
Yan lahat ang SAM Table mula 2015 up to today. Bago ako magpatuloy let me stop sa 2016 and discuss one thing.
TRC asked its members to buy CHP. I will explain bakit significant ito. Here was their email.
Sa walang idea sa CHP its a stock na nag open sa PSE at 10.75 pesos noong 2016 and is now at 1.46 pesos. More than 80% loss.
CHP was never a BLACK SWAN. A lot of people understood na buying it is bad. The first reason was unlike sa ibang stock/company na pumapasok sa stock market dahil gusto mag expand or mag grow further yung CHP ay pumasok sa stock market para kumuha ng pera pambayad sa utang nila. BDO ang isa sa pinagkautangan ni CHP at BDO rin mismo ang underwriter niya sa pag pasok sa stock market natin. Kung gusto ninyo malaman ano ba nangyare bakit bumagsak si CHP at ano dahilan bakit nag IPO si CHP sa Philippine Stock Exchange read this.
As CHP is going down here are the emails TRC is giving out.
CHP is making a nose dive mula sa IPO price na 10.75
While CHP is making a nose dive this is what TRC members recieve.
“Here is why we like CHP and believe in its long-term future” ” If you bought CHP at a higher price than what it is now just keep buying” “We believe it will go up” ” We are long-termers”.
CHP continues to dive. Here is the message TRC members receive.
“Here is the projection of our stock market mentor. He believes CHP will go up” “Nothing to worry about”.
Mula 10.75 nasa 6 pesos na ang CHP when they keep sending a “HOLD” message to their members.
Here is the next email.
Out of the blue they called it a black swan and asked members to sell but its way too late.
I don’t judge them sa ginawa nila. I just present facts.
Let us go back sa SAM. I will continue investing using SAM method.
If you want yung excel file nito just send me a message sa facebook and I will send it to you. Para na rin ma-confirm ninyo or better yet do your own computation para mas reliable.
Here is the result of my investment. I will present it year by year.
I lost 55,310 pesos noong 2015 (di kasama tax at fees). I lost 24, 286 pesos noong 2016.
I lost 1,907 pesos noong 2017 ( di kasama tax at fees)
I lost 8,991 pesos noong 2018
I lost 95,085 pesos noong 2019.
Mula 2015 until Feb 2020 if I followed SAM Table and invested 100,000 pesos monthly I would have lost 304,216 thousand pesos.
Going back sa Maid ni Bo. I found out that her name is Gina Macahilos.
I did a research about her. I watched all her interviews. I noticed one thing really odd. You see, I have been trading for over a decade and sa traders may paraan para malaman ang totoong performance ng portfolio mo. May tinatawag tayo na Trading Ledger.
Sa trading ledger makikita mo mga pag withdraw mo, pag deposit mo ng pera, ano binili mo na stock, ano binenta mo na stock, magkano mga kinita mo or magkano mga talo mo.
I watched all her interviews and none of them showed her ledger. Doon mo kasi maveverify if totoong naging millionaire siya sa pamamagitan ng pagsunod sa SAM TABLE ng TRC. I can’t blame others to blindly believe that story kasi di naman nila alam paano maverify but to us na may alam sa trading we can verify it. We can tell if totoo nga ba na naging milyunaryo yun dahil sa pagsunod sa SAM Table. We will see magkano ininvest niya. Ano anu mga binili at binenta. Magkano kinita at magkano nalugi. Makikita din namin if sinunod ba nito ang buy call sa CHP at magkano nalugi niya. The sad thing is they will never release a trading ledger. I will show you a real portfolio of an active TRC member later para may idea kayo what following the SAM Table look like sa reality.
Here is also an example of what TRC thinks kapag bumabagsak ang market. They seem to like the idea of market going down which is really bad if you ask me. Its bad in the sense na hindi lahat ng bumabagsak ay tumataas. I would love to explain it to you but take time and read na lang sa mga previous blogs ko and you will understand what I mean. Here are the blogs:
This was the latest message from TRC. “Sam will work kahit umalis mga foreign at rich Filipinos sa bansa” “You will end up with cheaper stocks and an even bigger future millionaire”. You need to understand that our market is dominated by foreign. If they started selling there is nothing we can do. Baka nga matrigger agad ang circuit breaker rule.
The PSE has implemented a circuit breaker rule for the stock market. The rule states that a 15 minute trading halt will be implemented if the PSE index decreases by at least 10% compared to the previous day’s closing level.
As I was looking into TRC past performance na lagi nilang pinapakita I also noticed one thing. We are in 2020 now but most “success stocks” na pinapakita nila sa top gainers was way back noong 2012-2013. That was a time na nagrerebound ang market. Kahit sino maglagay ng pera sa stock market noon kumikita.
I have not told you yet about the fees. Lets move on sa fees.
How much will you pay to be in Truly Rich Club?
497 pesos per month. Lets do a little math. 497 times 50,000 TRC members is 24,850,000 income per month! That is 298,200,000 per year.
I can’t verify the exact number of TRC members but one member told me that they are over 75,000 members. I took 2/3 of what that person told me and do a little math. I arrived with 298M pesos per year.
I presented you with facts now here is my opinion. I don’t think TRC’s method of peso cost averaging is working. If its not working now na nasa 7k ang index natin how much more five years from now? Walang cut loss ang trc. It means na kapag bumagsak ay walang exit plan. “May good fundamentals mga stock reco sa TRC at matitibay na kumpanya” Let me educate you a little bit sa statement na yan kasi ignorant statement yan. Ang fundamentals especially ang earnings ng kumpanya nagbabago yan. “Walang chance bumagsak si ganito ganyan kasi bluechip” You believe that kasi konti pa lang experience mo. I have a lot of examples but let me give you one at ikaw na maghanap ng iba. Look for the stock code PCOR which is Petron Corp. Dating bluechip yan. Natanggal sa bluechip at ngayon nise dive ng nose dive. “Si Warren Buffet yumaman sa pagbuy and hold” That is a statement of a person that don’t know how Warren Buffet became a Billionaire. I know you will hit me with Warren Buffet quotes. I will take that but please know that I love Warren Buffet. I never did and never will disrespect him. I don’t appreciate some traders making fun of Warren buffet or any value investor. If a person is richer than you or doing better than you in life, you don’t really have the right to disrespect them plus I just really admire Warren Buffet. Going back sa topic, you will probably hit me with this quote “If you liked it at $10 you should love it at $6 if it goes down.” A few years ago, back when my mom was still head of a certain investment firm, we would always have this little cute arguments. She would often quote Warren saying “If you liked it at $10 you should love it at $6 if it goes down” Then I would often say ” if you loved something at $10 and you were wrong, you might love it more at $5 and you almost as likely to be wrong, and like it more still at $2 and could equally be wrong.” When some people use Buffet’s quotes to justify why they average down they tend to forget a fact that Warren buffet started as a trader not as an investor as you know him now. A-huh. That’s right! Way before pa niya na meet si Benjamin Graham. Nasa 11 years of age siya nung nagtrade sila ni Dorris yung sister niya and I’m not sure if most of you know this but yes they bought six shares of Cities Service, an oil service company, at $38 a share. The stock fell hard after a few weeks at nag away sila ng kapatid niya. Wala siyang choice but to hold the stock. It went back up. He sold at $40 per share. The stock went to as high as $200 per share eventually. There are a lot of information and understanding na nalolost sa mga bagong traders/investors ngayon. Let me tackle it a bit kasi I really love Warren Buffet plus gusto ko din alisin ang mga ignorant ideas at statements na lagi ko nakikita sa mga long term investors or sa mga day traders. How did Buffet become rich? Saan galing pera niya? Paano niya napalobo ang wealth niya?He owned insurance companies within his conglomerate and could invest their “float”—the premiums they take in but don’t have to pay out in claims right away. Insurance float is the bread and butter of his wealth. He has used these money to create his vast empire and allow him to invest in or buy outright great companies like Geico, American Express, Coca-Cola, Wells Fargo and recently, Apple. I think most of you don’t know what float is so explain ko muna. In the insurance industry, “other people’s money” is known as float. We are all familiar with the terms premiums and claims, they are both the money that we pay every year for an insurance policy, and the money paid back to us when we have an accident, medical, or other circumstances. Saan ba napupunta ang pera na binibigay or hinuhulog niny sa insurances?( Dali ask your insurance agent/financial advisor) Insurers don’t pay out all the money right away. Instead, an insurance company will collect money in premiums, invest that money, and pay out claims as needed in the future. The difference between premiums collected and claims paid out is the insurance float. It is very similar to how a bank will collect deposits, invest that money (through loans), and then will repay that money in the future with a withdrawal . You don’t believe me?Here is what Warren had to say about it: Insurers receive premiums upfront and pay claims later. … This collect-now, pay-later model leaves us holding large sums — money we call “float” — that will eventually go to others. Meanwhile, we get to invest this float for Berkshire’s benefit. …If premiums exceed the total of expenses and eventual losses, we register an underwriting profit that adds to the investment income produced from the float. This combination allows us to enjoy the use of free money — and, better yet, get paid for holding it. Alas, the hope of this happy result attracts intense competition, so vigorous in most years as to cause the P/C industry as a whole to operate at a significant underwriting loss. This loss, in effect, is what the industry pays to hold its float. Usually this cost is fairly low, but in some catastrophe-ridden years the cost from underwriting losses more than eats up the income derived from use of float. …Our float has grown from $16 million in 1967, when we entered the business, to $62 billion at the end of 2009. Moreover, we have now operated at an underwriting profit for seven consecutive years. I believe it likely that we will continue to underwrite profitably in most — though certainly not all — future years. If we do so, our float will be cost-free, much as if someone deposited $62 billion with us that we could invest for our own benefit without the payment of interest.Warren went from having a trading business with her sister to learning value investing to being known as a buy and hold investor to a Warren Buffet The Billionaire that we know now. He often tell people to be an investor rather na maging trader which is totoo naman na if ikaw siya walang sense maging trader. He is too big na any movement gawin niya naaapektuhan ang stock. Kahit gustuhin pa niya maging trader hindi pwede dahil sa laki niya. Isang bili or isang benta niya lang ay either magceiling or magflooring ang presyo ng stock. He has no other option but to buy and hold. He can hold the stock for 50 years or forever, you can’t. If you retire in 20 years at bagsak ang market by that time paano na? The same goes sa “mentor” ng TRC na palaging namemention. I admire Edward Lee a lot but try and do some research to see if naging Billionaire ba siya sa pagbuy and hold ng stocks or dahil nag negosyo siya. When someone tells you something try and find out if that’s really true or part of it lang. I will let you do your research about all of these para kayo mismo magconfirm.
I don’t like the way TRC makes money while members are left with red portfolio but i love Bro Bo as a person. He has a lot of charitable works. He inspires a lot of people. I love Bro Bo pero objective lang ako sa blog na ito. i just want the truth kasi but yung love ko sa mga inspirational talks ni Bro Bo is still there. I admire him. I listen to his stories. I don’t like TRC kasi losses makukuha mo a pag e follow mo ang SAM nila. I don’t like TRC pero I like Bro Bo as a person. I guess you will just have to respect that.
Here is the real port of a TRC member. Look.
I’m a stock trader. I’m known sa trading community as Gandakoh. I help Filipino Stock Traders for free. Kumikita ako sa trades ko kaya free ang pagtulong ko sa kapwa ko stock trader. When I say free it’s really free. I never ask kahit piso. If you are a newbie na willing at gusto matuto sa stock trading I developed a course about stock trading for free which is called Tabula Rasa. Pwede mo e share sa anak,mo sa wife mo, sa relatives at friends. Pwede pa nga sabay kayo mag aral. You will learn everything you need para maging maayos na trader. We have a facebook group called Trader’s Lounge kung saan nandun lahat ng mga maayos na traders sa Pilipinas. They help each other doon. Mbabait sila sa newbies.
If you are not into trading naman dahil ayaw mo or feel mo you are too old for it and gusto mo safe investment I will give you all the options kung aan mo pwede ilagay pera mo para lumago na hindi mo na halos babantayan. Check it out HERE.
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