Today, I will answer one of the questions sent to me by a reader regarding Truly Rich Club.

I received this interesting question from one of my blog readers. She's asking if Truly Rich Club is worth the membership based on her investing plan of ₱2,000 to ₱2,500 a month.

I sent her my e-mail reply and I'm posting it here.

I decided to share my reply because I believe that there are many people (it might be also you) who also share the same hesitation. They are interested but are reluctant to join because their membership might not be worth it compared to the amount of money they are willing to invest on a monthly basis.

If you're one of those people, then this post will give you a deeper insight if you really need the guidance of Truly Rich Club or not.

If you already have extensive knowledge on the financial markets, have a different religion, or a trader who doesn't believe in going long-term, then Truly Rich Club is not really right for you.

With that said, here's the response I made in the email I received.

Hi! I really want to invest in stock market, to make it safer I want to be a Truly Rich Club member but I just plan to invest ₱2k to ₱2.5k monthly, is it worth it for my membership fee? Thank you!

Thank you for sending your inquiry regarding Truly Rich Club. Here are my thoughts..

Investing in the stock market is risky, trading makes it more riskier. You want to be a Truly Rich Club member, that's good because it tells me that you want to "invest"rather than trade the markets. I guess you already know that investing will really take a lot of time and thus, you have to be super duper patient.

Investing is risky even if you go long-term. Why? because your gains will depend on how much you "buy" the stock. A wonderful company is a bad investment if you purchase it at a price that doesn't make business sense.

To further elaborate, let's say you want to buy a siomai stand business that runs on autopilot and doesn't need further management on your part. Assuming it doesn't have any outstanding debts and makes ₱100K pesos average in a year, how much are you willing to buy it?

Give it much thought for like two to three minutes. If you can answer this question in an instant, you don't need Truly Rich Club. The concept of buying a stock is also the same when you buy a siomai stand business.

Sadly, this is the part where most long-term investors fail. They fail to "value" the business. Investors go on a buying spree without really knowing the value of the businesses they buy. Worst, they also fail to buy with a safety margin.

This is where Truly Rich Club comes in. Let me share you a screenshot of the SAM table.

Truly Rich Club recommends a variety of stocks that are carefully valuated and analyzed based on fundamental factors and prevailing market conditions. It gives you a target price, or the estimated "intrinsic value" of the stock.

When the stock is below that value, Truly Rich Club usually recommends that you buy that stock.

Sometimes, they tell you to hold just like in MEG. These actions are mostly explained in the "Stock Updates". You receive them twice a month and tells you what the market is doing now and where it is heading.

But to further add a margin of safety, Truly Rich Club provides a "buy below" price. If the price is below that price, you buy. If it goes high, you hold or depending on what Truly Rich Club's action-to-take recommends.

Truly Rich Club's recommendations provide an intrinsic value and a margin of safety on your purchases. With this, you greatly reduce the risk of investing. We really don't know how the market will perform in the short-term but in the long-term, it's proven that the market goes up when the economy goes up. The Philippines is an emerging market and is in a demographic sweet spot which means that the economy will experience a huge growth for the next thirty years because of the active workforce the young population has today.

Most investors without proper knowledge or guidance make the mistake of buying at a high price disregarding the concept of margin of safety. People buy at prices near or over the target price where in fact, those are the prices that are ripe for selling. Worst, when the prices drop, they get too emotional and sell to minimize the loss where in fact, they should be buying instead because of the insanely low prices the market is offering.

Truly Rich Club's SAM is based on Value Investing principles I advocate in my blog.

The most important part of Truly Rich Club is the "<strong>Stock Alerts</strong>" where they tell you exactly what to do depending on how the market trend or business is going at present. It's a bit like how the use of sensitivity analysis can help businesses to create a successful and stable financial plan that has considered any potential what-if scenarios that could affect them going forward. Knowing what is going on in the outside world, and how this could have a negative or positive impact on your business could be greatly important. With that being said, here's an example where it recommends MER and MBT.

Here's another one where they instruct to sell CEB.

These advise are like the ones you get with private stockbrokers. Business people who have millions invested in the markets need timely and relevant advise the most because with so much money invested, they would want to know the latest and best information so that they can allocate their capital well and therefore maximize returns.

If you're a Truly Rich Club member, you get these tips on a timely basis; perfect not just for the people who have huge capital in the market but also for small retail investors like wants to just invest and allocate capital in the most effective way possible.

Now here are my thoughts on the FREE tips out there that you get in Facebook groups..

Nothing bad about them, the problem is that people fail to filter out which ones are good and bad. Try to read about the "pump and dump" scheme where certain groups of people, recommend a certain stock and position themselves early on. When people start buying the hype and the stock price rises, these people who positioned early on dump them in the market to rake in huge profits.

Those that bought at the high will most likely be unable to sell those shares once the hype is over and thus, people get "ipit" or just cut losses.

Cutting losses and thinking it as a "tuition fee" I think, is not a good way to build wealth overtime. Warren Buffett's rules are simple;

Truly Rich Club provides an environment for the proper learning and mind setting. The information found in the membership are quality advises coming from expert analysts and technicians who have the licenses and right credentials. Most of them are working for COL Financial.

Not only that, you also learn many things about entrepreneurship and businesses from successful people who shares their experiences and valuable tips in the "Wealth Strategies" newsletter if you want to explore and further increase your cash flow.

Lastly, the "Power Talks" and "Success Mentors Collection" provides the proper mind setting I'm talking about from industry mentors. From stocks, real estate, entrepreneurship and many others. Mind setting is very important in achieving success. Being wealthy starts in the mind. If you start having a wealthy mindset, the body and actions you take would follow.

To answer whether the membership would be worth it based on your planned monthly investment, only you can answer that because I don't know much about your financial standpoint; Like how much in % of your income is the ₱2.5k? Do you have debts? How much money do you save excluding those invested in stocks? Remember that money invested in stocks are volatile. Depending on the risks you'll take, you may experience huge paper gains that will become huge paper losses in a matter of days, weeks, months or years.

Following Truly Rich Club's recommendations minimizes the risk you have to take. You can sleep soundly knowing that your investments have a lot more room to grow than blindly following someone else's recommendations without proper due diligence.

Always remember that the person you will be five to ten years from now will depend on the information you feed your mind today. So choose your resources wisely, pick the right mentor and engage in meaningful exchange of ideas.

If you decide to join Truly Rich Club, I would be happy if you'll join by using my link below.

I would also be glad to share with you all the things I have learned and practicing today on how to build wealth, retire young and rich.

Let me know if you decide to join and I'll be happy to assist you.

Regards and Happy New Year!

Mark
The Investing Engineer