We talk to Phillip Hagedorn on stock investment myths, financial approaches during the pandemic, and much more:
An alumnus of Boston College, Phillip Hagedorn has had a long and successful career in finance and stock brokerage. Former vice president, director and head of sales at Anscor Hagedorn Securities, he has also served as president of the Philippine Investment Funds Association (PIFA) and is now the chief investments officer for the ATRAM Trust Corporation.
How does one approach investment during a global pandemic?
The global pandemic is like technology; it has disrupted and continues to disrupt our lives. But unlike technology, the pandemic is not here to stay forever. Diversification is key to navigate these volatile times. Stay invested by preserving capital in primarily fixed income strategies while keeping your eyes wide open for opportunities in the equity space. This crisis has opened the door for opportunities that just recently were seen as firmly shut.
Name three myths on stock investing you’d like to debunk.
- Investing in Stocks Is Like Gambling. Yes. If you don’t do your research to increase your odds. The stock market is not a craps table where dice are thrown and almost anything can happen. In the stock market, things happen for a reason. The more you know how to read it, the better you will become.
- Stock Market Investing Is Too Complex for the Average Investor. It is not but you must be willing to take some time to learn about what makes the market tick. This learning curve is much steeper than you think.
- Follow Your Instincts When Investing. This is important but used alone is very dangerous. Trust your instinct then do the research required to confirm it. Then act!
Any tips for those looking to invest their first million?
The first tip I want to share with you is that you don’t need a million pesos to start investing. Since this is the first investment in financial products you will make, I suggest a good core foundation by buying a balanced fund. A balanced fund owns stocks and bonds and is a great way to start following and learning about markets. While learning, you will also enjoy returns that have the safety aspect of bonds and the risk aspect and thrill of investing that stocks give you.
