well, this entry will be very brief because i have to read several articles for our eco dev paper after this. i am really impressed by the way our Fil-Chi businessmen have dominated a certain industry and have gone on to expand and diversify their products to other sectors so as to have other income-generating vehicles in cases of downturns in any specific industry. i think this is probably a mantra in business. look for your niche and then expand. look at how donald trump dominated the real estate industry and he now goes on to ice, clothes and jewellery lines.
i am really impressed. lesson learned.
Sunday, December 14, 2008
Tuesday, September 30, 2008
Musings on Title and Function
After having two lectures with Dr. Villegas, I have been rather curious about a lot of stuff in society and individuals-in general. During our class he mentioned that girls are naturally born entrepreneurs because the housewives are the ones who look for ways to stretch the budget. In short, the wife tries to maximize the use of whatever the husband brings home to the table. Thus, we have Red Ribbon and quite a number of stores built by women to supplement their husbands' income.
Now, Dr. Villegas said that guys have this tendency to care about the title even if what actually happens is actually quite contradictory. The husband of Red Ribbon's founder quit his job and became company president. However, isn't it true that the wife does the operating function? But who the hell cares when your calling card says CEO, right? I say this because I have realized that it could be true. I remember my grandfather (who was a brave colonel in his lifetime) would do the laundry and ask my grandmother to hang them outside so the neighbors won't think he is "Under the Saya". Even though he kinda is cause he does that every time the maid is gone. HAHA! I guess what we could learn from here is girls are to be taken care of. They are just too delicate to be treated badly. I bet I'll be one heck of an "Under the Saya" too. I can't even stand a girl crying. Can't be stern. I'll give in because of a simple frown. Ok, I should stop talking about this.
The other side of the story here is in the setting of the Corporate World. I mean, people tend to have such dignified titles but at the end of the day, their functions are pretty much basic (for lack of a better term). I mean, people would love being called specialists or managers or even SVPs, etc. but honestly, I would rather be just a shareholder since they are the ones who rake in the cash anyway. Interesting huh? I mean just look at the winners of the apprentice. How can you hire such young people to executive positions? How could Ivanka who is only 25 be an SVP (well, she is an heiress) but still! I'm quite certain the title SVP today is not as demanding as the SVP back then. But hey! It's good for the workers' esteem. They're happy. They give good results, shareholders are happy so what the heck? Let us all be happy. =)
Now, Dr. Villegas said that guys have this tendency to care about the title even if what actually happens is actually quite contradictory. The husband of Red Ribbon's founder quit his job and became company president. However, isn't it true that the wife does the operating function? But who the hell cares when your calling card says CEO, right? I say this because I have realized that it could be true. I remember my grandfather (who was a brave colonel in his lifetime) would do the laundry and ask my grandmother to hang them outside so the neighbors won't think he is "Under the Saya". Even though he kinda is cause he does that every time the maid is gone. HAHA! I guess what we could learn from here is girls are to be taken care of. They are just too delicate to be treated badly. I bet I'll be one heck of an "Under the Saya" too. I can't even stand a girl crying. Can't be stern. I'll give in because of a simple frown. Ok, I should stop talking about this.
The other side of the story here is in the setting of the Corporate World. I mean, people tend to have such dignified titles but at the end of the day, their functions are pretty much basic (for lack of a better term). I mean, people would love being called specialists or managers or even SVPs, etc. but honestly, I would rather be just a shareholder since they are the ones who rake in the cash anyway. Interesting huh? I mean just look at the winners of the apprentice. How can you hire such young people to executive positions? How could Ivanka who is only 25 be an SVP (well, she is an heiress) but still! I'm quite certain the title SVP today is not as demanding as the SVP back then. But hey! It's good for the workers' esteem. They're happy. They give good results, shareholders are happy so what the heck? Let us all be happy. =)
Tuesday, September 16, 2008
COSTS
Ok, so I'm listening to our Advanced Microeconomics class lecture last Friday and our prof (who happens to be my personal mentor) gave us a really interesting insight. We were talking about costs (from a marginalist perspective) and he digressed to expound on the topic in real life (as is the case most of the times). During the first few years that we have her on earth, we incur pure total costs for our parents. We eat, study, splurge and pretty much expend our parents' income whereas we hopefully generate income in our remaining years. So if we are to live for 63 years, our first 33% of lifespan would be pure expenses then hopefully, we use the remaining 67% to be productive. It is really interesting! So I guess the ultimate question would be, when would the break-even point be and would we yield a higher rate of return than what our parents (or elders) spent on us? Would we generate a decent ROI?
So, there. The diagram looks somewhat like this:
Pure total costs Lots of Revenues
___________l_______________________________________
21 years 40 or more years
So, there. The diagram looks somewhat like this:
Pure total costs Lots of Revenues
___________l_______________________________________
21 years 40 or more years
Saturday, September 6, 2008
Adidas Philippine Jacket
I'm posting this for a friend:
Hello! I don't know if you've heard of the Adidas Philippine Jackets that are roaming around the streets but are somehow not available in retail stores. The said jacket is not available in the stores because they were not able to get the necessary papers. However, production started and they're trying to sell the manufactured jackets.
CHECK OUT THIS BEAUTY:
Price: Php 3,000.00 (Limited Edition). Supposed Market Value is Php 4,000.00.
American sizes ranging from XXS to XXL
From an economic point of view, you save a thousand bucks (25%)! From a normal person's point of view, you get a rare apparel and admit it, it's BEAUTIFUL.
e-mail me at: bienlouise@gmail.com for orders or queries. You could upsell it to your friends if you want.
Hello! I don't know if you've heard of the Adidas Philippine Jackets that are roaming around the streets but are somehow not available in retail stores. The said jacket is not available in the stores because they were not able to get the necessary papers. However, production started and they're trying to sell the manufactured jackets.
CHECK OUT THIS BEAUTY:
FRONT
BACK
Price: Php 3,000.00 (Limited Edition). Supposed Market Value is Php 4,000.00.
American sizes ranging from XXS to XXL
From an economic point of view, you save a thousand bucks (25%)! From a normal person's point of view, you get a rare apparel and admit it, it's BEAUTIFUL.
e-mail me at: bienlouise@gmail.com for orders or queries. You could upsell it to your friends if you want.
Wednesday, August 27, 2008
Blah.....
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.......
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.......
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?
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