My Maid Invests in the Stock Market by Bo Sanchez 1 | Page 17

The Company Has More Potential
“You know how your sisters like to buy the same shoes
and clothes? Let’s say your other 4 sisters want to also be a
part-owner of Mommy’s chocolate store. Because they believe
that the chocolate store will spread to 100 branches all over the
world. They foresee Mom opening stores in Paris, New York,
Moscow, Tokyo… So they go to you and beg you to sell them
your 10% share. What will you do?”
“I don’t know.”
“Think.”
“I guess they’ll gang up on me, twist my arm, pinch my
ear, and whoever causes the most pain wins.”
Dad rolled up his eyes to the ceiling again. “Bo, imagine if
all your sisters are kneeling down in front of you, asking, ‘C’mon
Bo, sell me your 10% ownership! Please! Pleeeeeeaaaaase!’”
That was my lightbulb moment. I got it.
“Hey, I won’t sell it for P20,” I said, “since they’re fighting
over it, I’ll sell it for P30. Or P40. Or even P50! I’ll sell it for P100.
Plus, whoever buys it from me must be my slave for the next 5
years.”
Dad chuckled. “So you realize that the price of the stock
is determined by two things: Real Value and Perceived Value.
Real value means the cost of the store—how much are the
chocolates and tables. Perceived value means how much are
people willing to buy it. Perceived value is based on potential.
Perceived value is based on demand.”
What I Do Today
Fast forward 30+ years later.
I now invest in the stock market.
And I teach others to invest too.
Note: I didn’t say “Trade” the Stock Market.
Because there’s a giant difference.
Let me explain in the next chapter.
www.TrulyRichClub.com

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