How Investing in Stocks Can Grow Your Wealth—Even With Just ₱5,000

For over a decade, Josefino Gomez, a Registered Financial Planner, has been investing in stocks—and he wouldn’t have it any other way. “Stocks let you become a co-owner of great companies, grow your money through compounding, and earn passive income while you wait,” he told FinancialAdviser.ph

Unlike other investments, stocks offer liquidity, flexibility, and unlimited upside potential. “If you invest ₱5,000 in a stock, the most you can lose is ₱5,000, but your gains could be ₱10,000 or even more,” Gomez explains.

Here’s why investing in stocks can be one of the smartest moves for your financial future.

1. Own a Piece of Companies You Admire

For a relatively small amount, you can become a shareholder of the biggest and most successful companies. “You can instantly become co-owners of great companies with management you admire,” Gomez says.

This means you’re not just a customer—you’re a business partner.

2. Start Small, Scale Up Over Time

Unlike real estate or traditional businesses, stocks require minimal capital to get started.

“You don’t need a big capital to start. You can begin with as little as ₱5,000 and add as you go along,” Gomez explains. This allows you to start small, gain experience, and gradually build your portfolio.

3. Compounding: The Secret to Growing Wealth

Stocks allow investors to take advantage of the power of compounding.

“A small amount could snowball into a bigger amount over time. Your knowledge and skill also compound as you stay longer in the market,” Gomez says. The longer you invest, the greater your potential returns.

4. Easy to Buy and Sell—Unlike Other Investments

One of the biggest advantages of stocks is liquidity. If you invest in real estate, selling takes time. But with stocks, you can exit anytime with a few clicks.

“Getting out and taking a loss in stocks is a breeze because of its inherent liquidity,” Gomez notes. “Stocks allow you to quickly change your investments if the market shifts.”

5. Earn Passive Income Through Dividends

Many stocks pay dividends, meaning you can get paid while waiting for stock prices to rise.

“In stocks, you can get paid by waiting,” Gomez says. “Most stocks pay dividends, and some—like REITs and preferred shares—pay even higher than bonds.”

6. Invest Anytime, Anywhere

Thanks to technology, you no longer need to be on a trading floor to buy stocks.

“Nowadays, you don’t have to be near an exchange to buy and sell stocks. You can invest in any stock anywhere in the world with a click of a button,” Gomez shares.

7. There’s Always an Opportunity

Even if you miss a great stock, there’s always another chance.

“When a pandemic hits, drug companies and essentials go up. When the economy reopens, tourism and airlines boom. Every day is a new day of opportunities,” Gomez explains.

8. You Call the Shots

Unlike other businesses, investing in stocks doesn’t require managing employees or handling day-to-day operations.

“You can choose your stock, price, and timing. If you don’t find any companies attractive, you can stay in cash until you discover some,” says Gomez.

The Bottom Line

Stock investing offers a unique combination of accessibility, liquidity, and growth potential. “It does not take much to start,” says Gomez. “You can start small and think big.”

If you want an investment that lets you own a piece of great companies, earn passive income, and grow wealth over time, stocks could be your best bet. The key is to start—and stay invested