Our Microeconomics professor gave us an interesting insight. Sometimes we wake up and feel like, OOMPH! We are energetic, ecstatic, ENERGIZED! Whereas in some mornings,we feel like, BLAH......... Well, that is what I am feeling right now. BLAH........
We have so many stuff to do for school. I am so overwhelmed! Although it may not seem like it. The stoic Asian that I am! I wonder why I don't show that much emotions... Hmmmm....
Anyway, Got to work on my IO! I'm not even fully prepared for MathStat yet...
BLAH.......
Wednesday, August 27, 2008
Tuesday, August 19, 2008
WAR
I had this thought last night before I began studying, I wish to share it with you:
I must first apologize for the possible rash judgments and generalizations that I may have in the notes to follow.
My grandfather and my granduncle are as of now deceased. Their deaths were caused by a similar condition, diabetes' complications to their other organs. Aside from this similarity, they also served the military during their lifetimes. Both of them were colonels in the Philippine Air Force
It is said that my ancestors were one of the active guerrillas against the Japanese soldiers during World War II. They were participating in the campaigns against the Japanese soldiers to help the Philippines regain its freedom. Sadly, their love for their countrymen was not reciprocated (at least for my grandpa). Theirr neighbor told on them (may it be out of hatred or a possible prize money, I do not know.).
One morning / afternoon, some of my grandfather's siblings left the house (for an errand, I think) and he was left in their hut (or mound, I think people lived underground during that time) along with some of his siblings and parents. Not long after, Japanese soldiers came rushing to their house and started looting their stuff. Out of panic, my grandfather went to a statue of St. Joseph. He was still very much visible. He could still see everything that is happening.
This sight would unfortunately cause heavy burden until his deathbed. He witnessed how his parents and some of his siblings were ruthlessly killed by the soldiers. He was however saved because of a miracle. He believes that the statue of St. Joseph blinded the Japanese of his presence. So up to now, the same statue is located in my grandmother's room.
This event would jumpstart his career in the military. Being part of the military was a great opportunity for him to avenge his family's death. He was hungry to kill. It is said that even though that the Japanese soldier begged for his life, my grandfather would still shoot him in the head. My grandfather also did not believe in prisoners. Just like the Spartans, he killed every single enemy. NO MERCY! After the war, my grandfather became one of the best soldiers in the military. He fought in a lot of wars and joined peace talks in Mindanao (he almost got killed for possession of Pork and Beans) and he was even sent to the States to do some militarty stuff there. Rightfully so, he was promoted to Colonel and he currently rests in Libingan ng mga Bayani. He truly was a bayani.
My grand uncle had a similar story in his military career. My granduncle was also part of World War II. It comes way back when my great grandmother, a nurse volunteered to help mend the soldiers and citizens free of charge during the war; medicines and professional help were given by their neighbor in Paco, the Romualdezes. I guess my granduncle was inspired by this act so he joined the war. Far from the Achilles-type of heroism of my grandfather, my granduncle was held prisoner and he was ordered to be in the Death March to Bataan. Some time during this time, he pretended to be dead. It is a good thing that he was not shot. The Japanese just kept on kicking him until he was kicked sideways as he rolled through the forest. Long after this, he woke up alongside some of his colleagues and they wandered through the forest to look for a way out. My grandmother tells me the story that they actually stole food from the pigpens because food was really scarce. They ate pagkaing baboy for sustenance. They were also problematic about clean water supply. Rightfully so, he was eligible for a slot in Libingan ng mga Bayani but I think his family opted out.
Am I talking about the honor of joining the war? The privileges that one could have for joining the war? Hardly so!
Look around! Watch the news! Read the newspapers! There are reports regarding the war going on. in Lanao del Norte and Mindanao. It is said that this is caused by the MILF.
We should discuss it in class or in groups so we would have an idea but no matter what we do, our exposure would be very limited. It is however, important that we try to talk about these issues. Though we cannot solve it on our own, we could at least expand our horizons and see beyond the small inconveniences of the weather, money constraint or academic load. We would see that life is a much bigger spectrum. It is not limited to our own lives in school, in the house or with friends. We would tend to see the bigger picture and understand why we need to be prepared; for when the time comes, we would be the ones in power to solve these issues.
I could never adhere to war. I would like to keep everything diplomatic. As long as it is possible, I do not want violence because it causes deaths and unnecessary sabotage of other people. Let us all try to think about this issue and hopefully, we could all equip ourselves for the future.
I must first apologize for the possible rash judgments and generalizations that I may have in the notes to follow.
My grandfather and my granduncle are as of now deceased. Their deaths were caused by a similar condition, diabetes' complications to their other organs. Aside from this similarity, they also served the military during their lifetimes. Both of them were colonels in the Philippine Air Force
It is said that my ancestors were one of the active guerrillas against the Japanese soldiers during World War II. They were participating in the campaigns against the Japanese soldiers to help the Philippines regain its freedom. Sadly, their love for their countrymen was not reciprocated (at least for my grandpa). Theirr neighbor told on them (may it be out of hatred or a possible prize money, I do not know.).
One morning / afternoon, some of my grandfather's siblings left the house (for an errand, I think) and he was left in their hut (or mound, I think people lived underground during that time) along with some of his siblings and parents. Not long after, Japanese soldiers came rushing to their house and started looting their stuff. Out of panic, my grandfather went to a statue of St. Joseph. He was still very much visible. He could still see everything that is happening.
This sight would unfortunately cause heavy burden until his deathbed. He witnessed how his parents and some of his siblings were ruthlessly killed by the soldiers. He was however saved because of a miracle. He believes that the statue of St. Joseph blinded the Japanese of his presence. So up to now, the same statue is located in my grandmother's room.
This event would jumpstart his career in the military. Being part of the military was a great opportunity for him to avenge his family's death. He was hungry to kill. It is said that even though that the Japanese soldier begged for his life, my grandfather would still shoot him in the head. My grandfather also did not believe in prisoners. Just like the Spartans, he killed every single enemy. NO MERCY! After the war, my grandfather became one of the best soldiers in the military. He fought in a lot of wars and joined peace talks in Mindanao (he almost got killed for possession of Pork and Beans) and he was even sent to the States to do some militarty stuff there. Rightfully so, he was promoted to Colonel and he currently rests in Libingan ng mga Bayani. He truly was a bayani.
My grand uncle had a similar story in his military career. My granduncle was also part of World War II. It comes way back when my great grandmother, a nurse volunteered to help mend the soldiers and citizens free of charge during the war; medicines and professional help were given by their neighbor in Paco, the Romualdezes. I guess my granduncle was inspired by this act so he joined the war. Far from the Achilles-type of heroism of my grandfather, my granduncle was held prisoner and he was ordered to be in the Death March to Bataan. Some time during this time, he pretended to be dead. It is a good thing that he was not shot. The Japanese just kept on kicking him until he was kicked sideways as he rolled through the forest. Long after this, he woke up alongside some of his colleagues and they wandered through the forest to look for a way out. My grandmother tells me the story that they actually stole food from the pigpens because food was really scarce. They ate pagkaing baboy for sustenance. They were also problematic about clean water supply. Rightfully so, he was eligible for a slot in Libingan ng mga Bayani but I think his family opted out.
Am I talking about the honor of joining the war? The privileges that one could have for joining the war? Hardly so!
Look around! Watch the news! Read the newspapers! There are reports regarding the war going on. in Lanao del Norte and Mindanao. It is said that this is caused by the MILF.
We should discuss it in class or in groups so we would have an idea but no matter what we do, our exposure would be very limited. It is however, important that we try to talk about these issues. Though we cannot solve it on our own, we could at least expand our horizons and see beyond the small inconveniences of the weather, money constraint or academic load. We would see that life is a much bigger spectrum. It is not limited to our own lives in school, in the house or with friends. We would tend to see the bigger picture and understand why we need to be prepared; for when the time comes, we would be the ones in power to solve these issues.
I could never adhere to war. I would like to keep everything diplomatic. As long as it is possible, I do not want violence because it causes deaths and unnecessary sabotage of other people. Let us all try to think about this issue and hopefully, we could all equip ourselves for the future.
Friday, August 15, 2008
simplification on investing
Disclaimer: My sources are from Encarta Encyclopedia, 2002; Buffett: The Making of an American Capitalist; and my short chat with my Macroeconomics professor, Dr. U. You might be familiar with him because he has been featured in many news articles the past couple of weeks due to our local economic problems (oil price hike, rice shortage, inflation and unemployment). I do not advise this post to be used for academic/paper purposes. The following article is written because it amused me.\
As I was reading Chapter 13 of Warren Buffett’s biography entitled, Buffett: The Making of an American Capitalist; I stumbled upon an issue that has lingered my mind for the last couple of days. In 1982, the US economy went into a recession. Ronald Reagan implemented a tax cut to boost consumer spending but the economy continued to suffer; partly because the government was in financial debt to begin with. With fewer taxes, the government could not finance their spending and the deficit grew from around 41B USD to almost 91B USD in a span of less than three years. It was even said that the 91B USD deficit was a conservative estimate because some analysts accounted the deficit to be 150B USD. Companies are not able to borrow money in the long-run because lenders are worried that the value of money would further decline because of the high inflation rate. Companies are then forced to borrow on short-term securities, thus they have to pay back their debts immediately, not being able to take advantage of their profits for the fiscal year.
Something that took my interest was the fact that money managers and investors stayed away from the stock market. Just at the time when quotes are at their cheapest! Money managers kept on saying: Stay out from paper! Stay out from paper! They invested in retail and bonds but not on stocks. How come? At first, I misunderstood what the book said, there seemed to be a commotion regarding the security that certificates represented. A money manager once said: Nobody knows the assurance of the value of paper (stock certificates). I thought, why would he say this? Is it possible that the economy is so bad that your certificate would be worth nothing? Meaning, you lose ownership of the company simply because the economy is so bad? Can the government take away the ownership from private individuals so that they can use the funds to finance the government deficit? Really stupid of me. Really, really stupid.
After our Macroeconomics class, I grabbed the opportunity to ask our dean/professor regarding this subject matter. He then told me that stocks are only worthless when nobody is willing to buy it or if the company went under and they could not finance the repayment of their shareholders’ money. But then I asked how come people were staying away from paper for the risk of the stock being valueless? Is it possible for stocks to be eradicated and lose their authenticity as proof of ownership? He then explained to me that stocks were not being purchased not because they were fearful that its ownership would be taken away but because stocks were continuing to plummet. Most may be so greedy that they want to sell at the lowest price possible. For a short-term investor whose main interest is to buy low, sell high and be satisfied from this profit, this is not a good situation. Thus being writ the famous quote: Whereas short-time investors are fearful of uncertainty; uncertainty is the friend of a long-time investor.
Some people do not care about the short-term fluctuations of the stock quotes simply because they are after ownership. They are interested in dividends and company performance, which is what stocks are intended for anyway. But there are people who would like to take advantage of a short-term gain. They are just after the money from trading without really caring about whatever company it is; who is running it; or whatever it sells. Everything is generic. Company X, Y, or Z is going down and it will go up, why not ride with it? I guess it’s kinda like sleeping around; getting the pleasure without the commitment. Logical naman eh. I just neither like it nor believe in it (as a Catholic and a rational human being).
So I guess it boils down to intentions. If you really like a company, you invest in it for the long-run. Through thick and thin. Not caring about its short-term values but its long-run values. Buffett once said: My favorite investment period is ‘forever.’ For a short-term investor, he would be interested in the short-term gain. How much money could I get from it in the next thirty minutes or two hours? What is my speculation for this company?
Inspired by Buffett’s simplification of business, I came up with my very own simplification of these two investment styles:
In relationships, some go for the short-run; some go for the long-run. Some go for instant gratification and choose to engage in pre-marital sex without the marriage. Merely enjoying the pleasure involved. Some go for the long-run, get married, celebrate their love , have children (although this is not always the case for barren couples) and be together forever (again, not always the case).
Whatever the case maybe, sex is meant to produce something. Just like companies, they are meant to generate something, expected to perform something. Some companies generate good results, some companies generate bad results. Do not be shocked. That’s the way company goes. Again in sex, do not be shocked if you get pregnant or get someone pregnant. That’s really the way it goes.
I think I could do a little better in my next simplifications. I really wanted to come up with quotes like these:
The price level is like virginity. You could preserve and maintain it but once lost, it can never be restored. – Buffett on Inflation
“Splitting stocks are not going to make shareholders any richer. Try slicing a pizza!” – Buffett on stock splitting
Why did you start investing at such a young age? “It’s kinda like sex; sooner or later you just gotta do it.” – Buffet on Investing.
Of course, I do not agree with everything the guy says and believe in. I also do not think some comments are moral but it puts ease in understanding business right?
As I was reading Chapter 13 of Warren Buffett’s biography entitled, Buffett: The Making of an American Capitalist; I stumbled upon an issue that has lingered my mind for the last couple of days. In 1982, the US economy went into a recession. Ronald Reagan implemented a tax cut to boost consumer spending but the economy continued to suffer; partly because the government was in financial debt to begin with. With fewer taxes, the government could not finance their spending and the deficit grew from around 41B USD to almost 91B USD in a span of less than three years. It was even said that the 91B USD deficit was a conservative estimate because some analysts accounted the deficit to be 150B USD. Companies are not able to borrow money in the long-run because lenders are worried that the value of money would further decline because of the high inflation rate. Companies are then forced to borrow on short-term securities, thus they have to pay back their debts immediately, not being able to take advantage of their profits for the fiscal year.
Something that took my interest was the fact that money managers and investors stayed away from the stock market. Just at the time when quotes are at their cheapest! Money managers kept on saying: Stay out from paper! Stay out from paper! They invested in retail and bonds but not on stocks. How come? At first, I misunderstood what the book said, there seemed to be a commotion regarding the security that certificates represented. A money manager once said: Nobody knows the assurance of the value of paper (stock certificates). I thought, why would he say this? Is it possible that the economy is so bad that your certificate would be worth nothing? Meaning, you lose ownership of the company simply because the economy is so bad? Can the government take away the ownership from private individuals so that they can use the funds to finance the government deficit? Really stupid of me. Really, really stupid.
After our Macroeconomics class, I grabbed the opportunity to ask our dean/professor regarding this subject matter. He then told me that stocks are only worthless when nobody is willing to buy it or if the company went under and they could not finance the repayment of their shareholders’ money. But then I asked how come people were staying away from paper for the risk of the stock being valueless? Is it possible for stocks to be eradicated and lose their authenticity as proof of ownership? He then explained to me that stocks were not being purchased not because they were fearful that its ownership would be taken away but because stocks were continuing to plummet. Most may be so greedy that they want to sell at the lowest price possible. For a short-term investor whose main interest is to buy low, sell high and be satisfied from this profit, this is not a good situation. Thus being writ the famous quote: Whereas short-time investors are fearful of uncertainty; uncertainty is the friend of a long-time investor.
Some people do not care about the short-term fluctuations of the stock quotes simply because they are after ownership. They are interested in dividends and company performance, which is what stocks are intended for anyway. But there are people who would like to take advantage of a short-term gain. They are just after the money from trading without really caring about whatever company it is; who is running it; or whatever it sells. Everything is generic. Company X, Y, or Z is going down and it will go up, why not ride with it? I guess it’s kinda like sleeping around; getting the pleasure without the commitment. Logical naman eh. I just neither like it nor believe in it (as a Catholic and a rational human being).
So I guess it boils down to intentions. If you really like a company, you invest in it for the long-run. Through thick and thin. Not caring about its short-term values but its long-run values. Buffett once said: My favorite investment period is ‘forever.’ For a short-term investor, he would be interested in the short-term gain. How much money could I get from it in the next thirty minutes or two hours? What is my speculation for this company?
Inspired by Buffett’s simplification of business, I came up with my very own simplification of these two investment styles:
In relationships, some go for the short-run; some go for the long-run. Some go for instant gratification and choose to engage in pre-marital sex without the marriage. Merely enjoying the pleasure involved. Some go for the long-run, get married, celebrate their love , have children (although this is not always the case for barren couples) and be together forever (again, not always the case).
Whatever the case maybe, sex is meant to produce something. Just like companies, they are meant to generate something, expected to perform something. Some companies generate good results, some companies generate bad results. Do not be shocked. That’s the way company goes. Again in sex, do not be shocked if you get pregnant or get someone pregnant. That’s really the way it goes.
I think I could do a little better in my next simplifications. I really wanted to come up with quotes like these:
The price level is like virginity. You could preserve and maintain it but once lost, it can never be restored. – Buffett on Inflation
“Splitting stocks are not going to make shareholders any richer. Try slicing a pizza!” – Buffett on stock splitting
Why did you start investing at such a young age? “It’s kinda like sex; sooner or later you just gotta do it.” – Buffet on Investing.
Of course, I do not agree with everything the guy says and believe in. I also do not think some comments are moral but it puts ease in understanding business right?
Tuesday, August 12, 2008
The essence of ownership
This idea is premature because I haven't started reading the book yet. I recently got a copy of a book entitled The Real Buffett. This book talks about Warren's management style. He tells his workers to treat the companies they work in as their very own company. I think they are already doing this in network marketing. Needless to say, this type of leading amazes me. If you think about it, ownership does not necessarily lead to diminishing interest (kapag nasa iyo na, nakakasawa). With ownership comes dedication and the will to excel. People tend to protect their own interests. Their jobs, their business but more importantly, their families, their reputation, etc. When one has ownership over something, he tends to treasure and safeguard it. Interesting huh? Well, I'm excited to read the book but I still have to finish these:
1. Buffett: The Making of an American Capitalist
2. The Art of the Start
3. Buffetology
4. Cracking the Million Dollar Code
5. Pursuit of Happiness
6. Freakonomics
I bought so many books despite having little time. Dunno when I could finish everything. Considering the fact I have tons of readings for school I'm only half way done reading. =(
1. Buffett: The Making of an American Capitalist
2. The Art of the Start
3. Buffetology
4. Cracking the Million Dollar Code
5. Pursuit of Happiness
6. Freakonomics
I bought so many books despite having little time. Dunno when I could finish everything. Considering the fact I have tons of readings for school I'm only half way done reading. =(
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