Searching for good investments

Financial advisers say that in order to grow your nest egg, you need to put some savings into investments that pay more than the usual interest rates available in time deposits, insurance policies and bank savings. One way to do this, supposedly, is to buy some stocks in good companies. (Another way is to buy real estate -- but I can't afford to buy houses, lots and condominiums.)

In the US, investing in the stock market is sound advice. But I'm having trouble applying it in the Philippine setting because it does not look trustworthy enough. I sought the advice of a couple of financial experts -- ones who are independent of the stock exchange -- and this is their advice.

Our stock excange, they say, is riddled with insider trading and manipulation. If you hope to gain from the Philippine stock exchange, be very very cautious.

This at first surprised me, especially since I thought that our stock exchange had been revamped several years ago. It appears that it still remains untrustworthy. This is another symptom of what's wrong with our country then.

A few of my advisor friends have given me some stock tips and I tend to agree with them since they follow sound, common sense investment guidelines similar to the ones Warren Buffet uses: buy from a company that is undervalued and is under good management.

Do you have a different opinion? I desperately want to be proven wrong about our malignant stock exchange. Feel free to comment here.