Spending P500 shopping in Sefalana vs Investing P500 in Sefalana shares from 2010-2024

I am really angry, here’s why;

The amount of money I lost not knowing how to invest is crazy compared to how much I spent on retail shops.

And I know I’m not alone in this because it’s a lot when I calculate how much I spend in a store like Sefalana every month compared to how much I could have made if I invested in Sefalana shares way back in 2010 until today 2024.

But keep in mind that all this is an estimate or theory not really that one will be able to do this considering their level of financial discipline and ability to earn, it is for educational purposes, not something that will pan out exactly this way.

Run the math on it. If you or I spent P500 every month shopping in Sefalana in 2010 alone, you would have spent P6000, but imagine you spent that amount every month from 2010 till today 2024. You would have spent P84,000.

Now let’s look at if you invested the same amount in Sefalana shares. In 2010 Sefalana shares were trading at P2.90 right now at P11.57. So if you had invested P500 into that for 14 years by now you would have P334 987.52

I know it’s shocking right? Do you know how many P84,000 are there in P334,987.52?

Close to 4 times, P84,000 multiplied by 4 is P336,000 just under P2000.

Let me show you how I got to that number;

To calculate the total value of your investment, we need to consider the number of shares you purchased each month with your P500 investment and then calculate the total value of those shares in 2024.

First, let's determine how many shares you could buy each month with your P500 investment:

P500 / P2.90 per share = 172.41 shares (approximately)

Since you can't buy a fraction of a share, we'll assume you can only buy 172 shares each month.

Now, let's calculate the total number of shares you would have accumulated over the years:

From 2010 to 2024, there are 14 years (2024 - 2010 = 14).

So, you would have made a total of 14 * 12 = 168 investments.

Total shares accumulated = 172 shares per month * 168 months = 28,896 shares

Now, to find the total value of your investment in 2024:

Total value = Number of shares * Price per share

Total value = 28,896 shares * P11.57 per share ≈ P334,987.52

So, if you invested P500 every month in Sefalana which was P2.90 in 2010 and the price is P11.57 in 2024, you would have approximately P334,987.52.

Crazy right? You and I missed out on that opportunity because we didn’t know better and were consumed with either Dragon Ball Z

Or Sunday night Korean drama

But it’s not completely over, remember S&P 500 and FTSE ETFs are coming, let me show you an example of an ETF that did well with the same P500 investment, NEWGOLD;

Investing P500 on NEWGOLD ETF in 2010 which was P83 every month till today 2024 you’d have P289,296.00

It’s not as big as Sefalana but that’s still big compared to saving P500 a month which will give you P84 000 which is 3 times less.

How much are the ETFs going to be and how many can we buy, is it 100 minimum like equities or shares? Let’s find out next week.