This is the fourth blog post that I have written in response to several questions asked by an accountancy student from the University of the Philippines Visayas (Cebu Campus) regarding the Philippine stock market. As I have said before, I have responded via a blog post because the answers I am giving are quite lengthy not to mention the chance and opportunity to inform the public about value investing and investing in the Philippine stock market. The previous questions and answers to such questions are found in these posts: “Questions and answers on the Philippine stock exchange” “The best asset allocation strategy to follow.” “Determining the best rate of return for investments” Actually this is a series of questions that were raised in a comment. To appreciate and learn more from her questions, I suggest that you read the previous posts. The next set of questions is as follows ". . . Now, we’re down to the portfolio diversification and security selection . . . Which … [Read more...]