Meet Money Master Dino Bate

At the Money Summit & Wealth Expo, we’ll have a pioneer and veteran in the Philippine stock market who will share his strategies to build wealth through stocks. Meet Conrado “Dino” Bate, President and CEO of CitisecOnline, the #1 Online Stock Broker in the Philippines.

1. When and how did you get started in the stock market? And what attracted you to this field?
I got started in the stock market in 1988 when the bank I was working for decided to set up a new team that would service clients on their stock market investments. At that time, there was a surge in interest in investing the stock market since the Philippines was undergoing a dramatic change after the EDSA revolution. Many people were shifting their funds to equities from the traditional CASA accounts.

I was attracted to the stock market because it presented plenty of opportunities for young and highly driven individuals to build a career and make a name for themselves. It was an exciting new field and there were very few people who understood what the market was about. I was challenged to learn something new, different, and potentially financially rewarding.

2. What would you consider your first biggest/most profitable stock investment?
I find that my most profitable investments are those in undervalued companies that are in fast growing and underserved industries, with a core competitive advantage, and a strong management team. I find that holding on to these issues over time presents the best strategy in making the most profits in the stock market.

3. Who do you consider your mentors and what’s the most important thing you learned from them?
When I started in 1988, I really did not have a particular mentor, as there were few experienced people in the stock market at that time. I learned from talking to different people in the industry here and abroad, and I read a lot of books about investing in the stock market. As a fund manager in Philamlife, I had the opportunity to be exposed to markets in the region and learn from my colleagues overseas on how to look at markets and evaluate companies.

When I joined CitisecOnline in 2003, our Founder and Chairman Edward K. Lee became my mentor as he taught me technical analysis and how to apply it in timing the market. In COL, I also gained more exposure in investing in regional and global markets, such as Hong Kong and the U.S.

The most important thing I learned in my years in the stock market is how to manage risk. Because of the unpredictability of the market, it becomes very critical to manage risk by understanding how to navigate through the ups and downs of the markets.

4. Which books, websites, and other resources do you recommend for beginning stock investors?
For beginning investors, I recommend Peter Lynch’s “One Up on Wall Street” and Michael Moe’s “Finding the Next Starbucks”. I also highly recommend attending our Free Seminars at the COL Training Center on the basics of stock investing and downloading a copy of the stock market primer co-authored by COL and the Philippine Stock Exchange called “Building Wealth with Stocks: A Basic Guide to Stock Market Investing”.

5. How much can one expect to earn in investing in the stock market?
While in reality one can earn an unlimited return in the stock market depending on the growth prospects of a company, history has shown that average stock market returns over the past 20 years is at 14% per year. This is higher than what you can expect from investing in fixed income instruments over the same period.

6. What are two different ways one can earn money in the stock market?
You can make your money grow in the stock market through passive investing or active trading. Passive investing involves buying stocks with the intention of long-term appreciation and involves limited maintenance. On the other hand, active trading is buying and selling stocks with the intention of making money in the short term. To be successful this requires market knowledge, skill, and active participation in the market.

7. Per your experience, which of these strategies gives the highest chances of succeeding?
I believe that investing in the stock market successfully requires buying good quality companies that are undervalued and holding on to them over a long period on time. One of the best ways of doing this is through a simple and time-tested technique called peso cost-averaging. This method involves investing a fixed amount of money in good quality companies at regular intervals over a long period of time. Peso cost averaging reduces market risk by stretching out your purchase of stocks over time, buying more when prices are low and buying less when prices are high, effectively keeping your average cost down.

8. What are the risks involved in investing in the stock market? And what can one do to mitigate those risks?
The risk involved is losing your money and investment capital if you do not have the discipline in buying good quality companies and proper risk management techniques, such as diversification and limiting losses.

9. What would you consider your worst investment mistake? What lesson have you learned from that experience?
The worst investment mistake is listening to rumors and speculating without verifying the value of the companies you are buying. I’ve learned that you should do your homework in understanding the companies you are buying. You also need to learn the discipline of money management. Opportunities in the markets will be always be there so if you are not sure of your investments, then it’s okay to miss an opportunity until you have done your homework before making the decision to invest.

10. For the beginning stock investor, what advice can you give to get started?
Before starting to invest in the market, they need to first evaluate their own personal financial standing, risk appetite, and investment objective. In particular, they should know how much money they can allocate for long-term stock investments. Furthermore, it is important to maintain the discipline of saving and investing regularly. As I will discuss in my talk, getting rich and having a richer life can be done in three simple steps: Start saving, invest continuously and regularly, and start now.

This interview will also appear in the July-August 2010 issue of MoneySense magazine.

ABOUT DINO BATE

With over 30 years of experience and expertise in the stock market and instrumental in the success of CitisecOnline (COL) in becoming the # 1 Online Broker in the Philippines, Conrado “Dino” Bate, COL’s President and CEO will share with you key investment strategies on investing in the stock market and becoming a multi-millionaire within your lifetime.

Dino has had extensive experience in the Philippine stock brokerage and fund management industry. Prior positions that he has held include: Vice President of JP Morgan Philippines, Inc. from 1997 to 2002; Vice President of the Fund Management Division of Philamlife Insurance Company from 1990 to 1995.

Dino was a former member of the Board of Directors of the Philippine Stock Exchange (Chairman of the Investor Education Committee) and currently a member of the Board of Directors of Mutual Fund Management Company of the Philippines. He graduated from De La Salle University in 1985 with a Bachelor of Arts Degree in Economics and a Bachelor of Science Degree in Marketing Management.

Dino will show you how simple it is to build your wealth in the stock market. He will share his knowledge, insights, and first-hand experience on how the stock market has made Filipinos become financially independent by sharing simple investment strategies which can be followed by anyone, regardless of age, income, or investment knowledge.

ACTION STEPS

Step 1: Watch Dino’s interview with Ricky Carandang on ANC’s Business Nightly.

Step 2: Learn how to set up an account on CitisecOnline and start investing in stocks.

Step 3. Learn from Dino as he shares the 3 simple steps to becoming a multi-millionaire through the stock market at the Money Summit & Wealth Expo this July 2-3 at the RCBC Plaza, Makati City.