My Maid Invests in the Stock Market by Bo Sanchez 1 | Page 15

Chapter 4

Own a Great Company
When I was 8 years old, I learned that my parents invested
in the stock market. I overheard them say that they owned shares
of San Miguel. (My father worked for San Miguel Corporation for
most of his life.)
I asked my father, “What do you mean by stocks, Dad?”
He said, “If I bought a few shares of stock of San Miguel,
that means I own a tiny part of San Miguel.”
“Wow,” I gushed, “if you own a part of San Miguel, does
that mean they’ll give us free Magnolia ice cream and Coke?” (At
that time, San Miguel also owned both companies.)
Dad shook his head. “No. It means if San Miguel earns
money, they’ll give me a tiny part of their profits. They call
them dividends.”
“Oh, I see.”
Actually, it was as clear as mud to me.
Dad looked at my face and knew I was lost.
So he gave me an example.
“Let’s say your mother puts up a small candy store in
front of our house…”
“But Dad, Mommy doesn’t like candies. She loves
chocolates.”
Dad rolled up his eyes. “This is just an example!”
“Then make it realistic. Let her open a chocolate store.”
“Okay! Mommy needs P50 to buy the chocolates and
another P50 to buy a small table for the store. So she needs a
total of P100. But let’s say she doesn’t have P100. Let’s say she
only has P90. So she walks up to you and asks, “Bo, can you
give me P10? In return, you’ll own 10% of my candy store…”
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