tag:blogger.com,1999:blog-331460202024-03-13T08:47:43.774-07:00Cheap Stocks by Chiefthis is a blog about undervalued securities in the Philippine stock market :) about how to succesfully use value investing to help you to financial independence :) we can talk about life, love, politics, health, family and anything under the sun. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.comBlogger108125tag:blogger.com,1999:blog-33146020.post-89902644578668786052011-03-23T01:08:00.000-07:002011-03-23T01:24:07.952-07:00lets help japan<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://chicagoist.com/upload/2011/03/2011_3_11_japan_earthquake4.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 640px; height: 445px;" src="http://chicagoist.com/upload/2011/03/2011_3_11_japan_earthquake4.jpg" border="0" alt="" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://media.spokesman.com/picture_story_images/Japan_Earthquake_t940.jpg?e9219e083a78a4429a18d28d8a24b72ce48bf775"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 940px; height: 701px;" src="http://media.spokesman.com/picture_story_images/Japan_Earthquake_t940.jpg?e9219e083a78a4429a18d28d8a24b72ce48bf775" border="0" alt="" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.dawn.com/wp-content/gallery/tokyo-earthquake/japan-earthquake-1.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 673px; height: 505px;" src="http://www.dawn.com/wp-content/gallery/tokyo-earthquake/japan-earthquake-1.jpg" border="0" alt="" /></a><br /><br /> last march 11, 2011 will go down in history as one of the most powerful earthquakes that have hit the world. i have been glued to the news watching the development of this catastrophe that has hit japan. it started with an earthquake, then a tsunami, and then a nuclear blast, deaths of thousands and so much more missing. it pains to look at families look for their loved ones and after they have found them they cant even give them a proper burial. now i hear a lot of the sick cant get proper medical attention. and now i also hear that the food crops and water now have radiation but low levels only but still is a cause for concern. also what if the radioactive material get into the ocean and it might also contaminate the marine life and the japanese is one nation that loves seafood. but with this tragedy i have realized that there is so much to be praised about japan... a lot of buildings survived the earthquake and that is because of the strict building regulations in the country. people are calm despite what happened. people now have to give way and sacrifice... the perfect example would be the workers in the fukushima nuclear power plant... my hats off to the japanese. i look at them and i can say for sure they will rise again from this tragedy... heroes will emerge from all these and they are the japanese people. but in the meantime they need help and on march 27, 2011 i will join the 15k run of the Globe run for home in the bonifacio global city. i hope there will be generous souls who will donate for every kilometer that i run. i will also personally give a donation and after gathering all the donations i will give it to run for japan. please check the website www.runforjapan.com and if you want to donate please email me at compounder888@gmail.com thank you so much. God bless :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-21828051560387795452010-11-10T01:14:00.000-08:002010-11-10T01:31:26.400-08:00running, investing and life<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJYWePI0nLivzvalT2ErMZCcBCQ-q3Qa6vK0Di_eSxwIZqXWvP-WdZuEe6gPqIOYMevLfJFrfe35IZsunwlCpi-H08RZiBzQyRaIsxZ5VbuIFLX7BiQj3AMzSpmtJIPX71DPA5/s1600/kara+goucher.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 214px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJYWePI0nLivzvalT2ErMZCcBCQ-q3Qa6vK0Di_eSxwIZqXWvP-WdZuEe6gPqIOYMevLfJFrfe35IZsunwlCpi-H08RZiBzQyRaIsxZ5VbuIFLX7BiQj3AMzSpmtJIPX71DPA5/s320/kara+goucher.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5537851148474688754" /></a><br /> Its been awhile since i wrote because i have been busy the last few months. :) busy with work, friends, my girlfriend, family and my new found love, running. :) running has taught me lot of things in this short love affair of ours. It reminded me that in work and anything in life one should always enjoy the process more and not the outcome... as the saying goes “enjoy the journey.” It has brought me back to my athlete days when discipline was at a premium. I have cut my smoking to about 80% from 4-5 packs per week, i have given myself a limit of only 1 cigarette pack per week so as not to shock my body from the absence of nicotine(im just trying to avoid withdrawals). But eventually i am going to completely stop smoking that will most likely be some time early 2011. :) it has also forced me to eat more healthy meals. :) i have now learned to love eating vegetables and drink milk everyday for healthy bones. :) i am training myself slowly but surely adding more to my mileage a little everytime i can feel that my body gets stronger. It has definitely awakened my competitive spirit in sports and i really want to be good in this sport. I wanna run better times in different distances and maybe sometime end of 2011 run a full marathon. And im also lucky the my girlfriend is really supportive. My run time is also time for myself, its time for me to think and clear my mind. Time to look back at my life the last few years, i now have lessened time using facebook(only to communicate with friends) and i noticed im even happier because of that. :) i do remember a study before that stated that people who spent a lot of time in social networks be it friendster, facebook, multiply or the like was a sign of depression. :) looking back at myself maybe during that time i spent so much time in facebook was really a low point in my life and looking at the people who are so hyperactive in facebook.... i guess maybe some of them have nothing better to do or have nothing going in there life that they need to be in this “fake reality” because it makes them feel cool or they have a lot of friends. :) i read from a book before a saying by a famous author “80% of your friends are not real, 15% look real and the 5% left are your real friends.” :) that saying really hit me hard coz i have been betrayed, used and abused by some of my so-called friends before and in the end we had a “falling-out.” but i dont condemn them because i gained wisdom, strength and now i know who my true friends are. :) i have learned that one should look for people who will have a good influence on you. The only way to be the best is to learn from people better than you. :) and to be able to succeed in life one should have a good partner to walk/run with you along the way. That was what my father repeatedly told me before and it is only now that i have truly understood the wisdom in his advise because after all no man is an island. :) i guess this will be all for now. :) things i have learned the last few years 1. slowly but surely does it 2. dont overdo it. 3. what doesn't kill you only makes you stronger 4. aches and pains will go away 5. learn from the best 6. give it your all in anything you do. As my grandfather always used to say “hurry up slowly” God bless you :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com1tag:blogger.com,1999:blog-33146020.post-53606334603370395422010-08-09T02:02:00.000-07:002010-08-09T02:22:04.511-07:00Cost of Money<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSV73XT__3zxTLL3L7QssQVu2XQB00F-NvCoko4OUzsXKR_hdB8AFmIGgqxatG-YHqB1prkaFLqiuA-clgh9fUjrpLFEMnGlyAnkljn1gdo3XQ5xU5RTQusWPjHrWkl0Tzqel4/s1600/fake5pesobill.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 266px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSV73XT__3zxTLL3L7QssQVu2XQB00F-NvCoko4OUzsXKR_hdB8AFmIGgqxatG-YHqB1prkaFLqiuA-clgh9fUjrpLFEMnGlyAnkljn1gdo3XQ5xU5RTQusWPjHrWkl0Tzqel4/s320/fake5pesobill.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5503337583407503954" /></a><br /> <br /><br /> Opportunity cost is the cost related to the next-best choice available to someone who has picked between several mutually exclusive choices.[1] It is a key concept in economics. It has been described as expressing "the basic relationship between scarcity and choice."[2] The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.[3] Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered opportunity costs.<br /><br />The concept of an opportunity cost was first developed by John Stuart Mill.[4]. This definition is taken from wikipedia. This topic really has intrigued me the past month because my girlfriend and me have been talking about settling down and starting a family. Its basically a talk BUT she doesnt know the SECRET plans that i have in store because i want it to come as a surprise. Anyways, talk of marriage made me think and reevaluate my current position in life emotionally and financially. With increasing costs all around us, it made me think, how much should i save with what i earn? Will it be enough? How much do you need to be able to raise a family? How much should one save for a rainy day? What is extravagant spending? Then it made me realize that using the credit card can be good because you get a “float” of one month but this is assuming you have the discipline to control your buying. Im really working hard so that my monthly expenses can be paid by my bank deposit's monthly interest and i realized that it can be achieved if you live a simple life. :-) i've met people and friends who spend a lot and some who are freebies but i guess its different strokes for different folks. There is no correct solution and do whatever works best for you. Some people can spend a lot on their holidays, cars, houses, clothes, bags and whatever you can think of. People have different resons on how they spend their money maybe because ownership of the said item makes you feel “cool” and maybe also the influence of the media and advertising. But when you spend your money on something you lose so much more not just the amount you spent which is basically opprtunity cost. I have always wanted to have a motorcycle and the cost of a good one is around the P500,000 range and assuming i bought it how much did i lose?<br /><br />Assuming i can get 3.2% interest net from the bank my 500,00 in these number of years would have been worth:<br />5years 516,000<br />10 years 685,120.52<br />15 years 801,983.56<br />20years 938,780.26<br />25 years 1,098,910.79<br />30 years 1.286,355.25<br />assuming i put the 500,000 in an investment that can give me 8%net per annum then i would have<br />5years 734,664<br />10 years 1,079, 462<br />15years 1,586,085<br />20 years2,330,479<br />25 years 3,424,238<br />30 years 5.031,328<br />this is the power of compounding working at its best. But i should say you will lose even more because we havent taken into account the yearly depreciation, gasoline expenses, if you took out a loan to buy it and repairs. So in the end you will lose even more.<br />What if i bought a car worth 3million with a resale value of 1m after 5 years how much will you lose?<br />Theoretically you lost 2million. Cost of the car less the resale value. So ill put a chat here amounts if you put your money in an investment that can give you a compounded rate of return of 8% and 15%<br /><br /><br />2million at 8% compounded return <br />5 years 2.938,656 <br />10 years 4,317,850 <br />15years 6,344,338 <br />20 years 9,321,914 <br />25 years 13,696,950 <br /><br />2million at 15% compounded return<br />5years 4,022,714<br />10years 8.091,115<br />15years 16,274,123<br />20 years 32,733,074<br />25years 65,837,905 <br /><br />what if you put the whole 3million in an investment that could give you an compounded returns of 8% and 15%<br />3million at 8% compounded return <br />5 years 4,407,984 <br />10 years 6,476,775 <br />15 years 9.516,507 <br />20years 13,982,871 <br />25 years 20,585,426 <br /><br />3million at 15% compounded return<br />5years 6,034,072<br />10years 12,136,673<br />15years 24,411,185<br />20years 49,099,612<br />25years 98,756,858<br /> <br /><br />after doing the calculations it made me so happy that i knew better in where to spend my money cause all these talks of settling down has definitely made me more conscious of my finances. As the saying goes 'your future starts today'. For success two elements are important planning and execution. Now that i have made the plan now its up to me to execute it. God bless :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-11683684711615436322010-06-02T06:19:00.000-07:002010-06-06T07:04:57.174-07:00Amazing Boracay<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqj7rFFgJ7DnaoeCDFT_eCTLfjuUFzbSfqg5AXY_QuqNZ9hLp66xEdriYQM9HomZp9RXwYnBr9zMJ9k7DqTtWgFk4fZXBOvOjtxyJ5HOiRgwE_qJuDydkcqT5EBNF04eO7fTei/s1600/May+10+Bora+031.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 214px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqj7rFFgJ7DnaoeCDFT_eCTLfjuUFzbSfqg5AXY_QuqNZ9hLp66xEdriYQM9HomZp9RXwYnBr9zMJ9k7DqTtWgFk4fZXBOvOjtxyJ5HOiRgwE_qJuDydkcqT5EBNF04eO7fTei/s320/May+10+Bora+031.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5478165743581308514" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTw3xYke7tIFxLm1lIAQUExKjv7UH5oDHoFs7UP8up85A-CL8wrTKUPNCUOBXodnq57qMNSpYa8T3V0j5kC19J6L3S9C3Q_2CpW__WEsfiReXxC6dCdvzVlAlcQixF2hYdQBa6/s1600/May+10+BEE+339+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTw3xYke7tIFxLm1lIAQUExKjv7UH5oDHoFs7UP8up85A-CL8wrTKUPNCUOBXodnq57qMNSpYa8T3V0j5kC19J6L3S9C3Q_2CpW__WEsfiReXxC6dCdvzVlAlcQixF2hYdQBa6/s320/May+10+BEE+339+edit.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5478165732884166914" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhEGbo15VYTwQCm-4tlCzIcyOUHOfKepysk9jsTBwlMW81OCqaT0ePHXimEuLkg-9094RB0_OGkmWPP0SSwmGVrdvVZjO2xB0lfK2564YB5xw9s4QC6qJaXSFKjkv-1qVFjeNg/s1600/May+10+BEE+140.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 240px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhEGbo15VYTwQCm-4tlCzIcyOUHOfKepysk9jsTBwlMW81OCqaT0ePHXimEuLkg-9094RB0_OGkmWPP0SSwmGVrdvVZjO2xB0lfK2564YB5xw9s4QC6qJaXSFKjkv-1qVFjeNg/s320/May+10+BEE+140.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5478165728602670402" /></a><br /> Boracay is truly an amazing destination, it has a beautiful beach, lovely sunsets and the resorts there are world-class and my girlfriend and i had a truly unforgettable experience there for our anniversary. When i was in Boracay i realized a lot of things especially on the business side of the island. One can see in Boracay how progress can be made possible with the cooperation of the government. The island is truly an attraction of the country and even in my travels abroad and when i say im from the Philippines and 7 out of 10 times the response would be “I've been to Boracay!” or “I wanna go to Boracay.” So i always tell them that it is now easy to get to Caticlan airport from Manila and then just take a pumpboat to the island. Last I've heard this summer there were around 40flights more or less in Caticlan everyday during the peak season. :) It really shows the business that tourism can generate if supported by the government which they have thru the expansion of the Caticlan airport, building of the jetty port in Boracay island and smooth roads to Caticlan. :) my girlfriend and I drove from Iloilo to Caticlan and it took us around 4hours with just one bathroom stop. But if you drive faster I think one can make it a three and a half hour trip. :) the move of the government to move the holidays near the weekends also helps boost the local tourism industry for it encourages our countrymen to explore and travel around the country be it Coron, Subic, Tagaytay, Baguio or Boracay. The country's most visited place by foreigners is Boracay and what brings them to the place is basically the sun and the beach. There is this threat now of global warming and that maybe it might affect the island but the national and local government should make all the necessary efforts to develop the island further and maintain its world-class status. Boracay caters to everybody from class A to C. :) Everything that you need is there be it premium accomodations to the budget hotels. Food is also not a problem because almost all the popular food brands are there and you can also have the local food or buy seafood from the talipapa and have it cooked, you can also try the popular chori-burger of the island or call off the local Jonah's shakes. With activities there is so much to do for the old just to relax, or for the young to party and drink in numerous bars at night. Groups or couples can always try the banana boat, reef walking, Zorb, para-sailing and zipline to name a few. As of last count there have been more than 700,000 visitors last 2009 and there are now more than 5,000rooms available in the island. Boracay was always popular but the boom really started when the big name hotels started arriving a couple of years ago like Shangrila and also the emergence of local players like Discovery Shores, Boracay Regency and Waling-Waling. We stayed in Waling-Waling hotel and the experience was quite memorable because of the good service of the staff and preparing for us a great anniversary dinner(well actually it was more of a surprise anniversary dinner for my girlfriend). :) The food was great and location of hotel is good also :) i couldnt help myself but ask the staff but their clientele and they told me that 70% of their occupants are returning guests and that made me think. Why would those people keep coming back? I can only think of one answer: A SATISFIED CUSTOMER. :) and I have to say I am one also and we'll stay there are next trip back. And as for the tourists of the island of Boracay im sure they will always keep coming back because there always be new memories to be made everytime you're there. :) Let us preserve Boracay and help promote Philippine tourism. :) God bless :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-5927883425539919452010-03-05T23:49:00.001-08:002010-03-05T23:55:06.410-08:00to buy or not to buy... that is the question<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEga1O22AFHmDLs32mFv8T_AWUQn-85zCOf6Sf8KRQWjiwRDnxgZnU0CNMWgRKo6ictvJ_zO9tHCH8Jh8ZVJ0D_oMWpZIQPhkWG9pdj9EPRwn_VGOPa6vEAYAWo6Q80P2OWxj5A0/s1600-h/confused1.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 160px; height: 152px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEga1O22AFHmDLs32mFv8T_AWUQn-85zCOf6Sf8KRQWjiwRDnxgZnU0CNMWgRKo6ictvJ_zO9tHCH8Jh8ZVJ0D_oMWpZIQPhkWG9pdj9EPRwn_VGOPa6vEAYAWo6Q80P2OWxj5A0/s200/confused1.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5445426099415437922" /></a><br />What would you do?<br /><br /> Its good to be back writing after a long lay off. I have been busy with work, busy with stocks, learning what life is all about and i found “the girl.” anyways im not here to talk about my personal life but i do have to admit that what im going to write about has been keeping me busy day and night the past five months. A few months ago we came across this business and the owners were open to selling it to us. So my father and i were interested because it was a business that we were familiar with. The story goes like this... the offer started with a price of around P530m to be paid in three tranches. But after further negotiations the price was brought down to P500m and still to be paid in three tranches. The business has around 100 branches and the takeover of these will also be in three tranches. The estimated returns will be around 16% per annum assuming that everything goes according to plan. The plan is to do cost cutting measures especially on some expenses that we consider “somehwat excessive” and also at the same time making sure that the operations of the business wont be affected when these cost cutting measures are enforced. The only problem with the operations of the business is something i would call extreme. When i say extreme it means that there are a few of very profitable branches and a lot of branches that are either making marginal profits, breaking even or losing money. After further study of the day to day operations of the business and after studying how much we can cut from expenses we discovered that only 40 branches would be making a good profit and the rest would either be losing money or making a marginal profit which if you really think about it... its not worth it to operate and waste your time on. So i would say this would be the most important factor to go or back off the deal. Do you maintain and support all the existing branches or do you close the 60 mediocre or losing branches and then incur a loss of around P30m but in exchange you are able to streamline operations. It was also mentioned that returns would be 16% per annum but we havent yet put into consideration the effect of competition with it driving prices down and with it profits also and that would also mean a longer payback period and lower rate or return. Is 16% return per annum enough for an investment like this? Should we have tried to lower the purchase price? Can you say this is a good investment? Or this is a bad investment? Should one pay a premium for something that one has expertise in? Cause we calculated that the goodwill of this takeover would be around P17m-P20m. Is the goodwill valued fairly? Or is it too much? How can one really value the exact amount of goodwill? Some of the drawbacks of a takeover also would be that you will inherit all the problems of the existing business or as they say “caveat emptor” or buyer beware. Cause no amount of due diligence can really expose ALL the problems of the business it will only be when you takeover and run the business that you will see all its problems. But the main reason why one would consider taking over is that you get into an existing business(one thats running already when you consider it is so hard to start up), one that has clients already, the manpower necessary, the needed infrastructure to conduct business and immediate income(assuming the business is making money). But i do have to point out that despite this not all takeovers are successful also so there would be still some risk. So i would like to hear what you think. Any comment, suggestion or question would be welcome. Or you could also tell me what steps you would take if you were in this situation. Thank you. Take care always and God bless.chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-48294483660441639302008-11-24T23:38:00.000-08:002008-11-24T23:44:18.570-08:00im back!!!!Hello again everyone!!! after almost three months without any posts in this humble blog of mine i am now back. :) the past weeks my life has mirrored the market. I mean that is not figuratively speaking, i mean it also went into a free fall. But i have already hit rock bottom and there is no way to go but up. :) maybe some things in our life just have to happen.... not to put us down but to teach us a lesson. With pain there are lessons to be learned. I have learned so much the past few months. I have matured a lot and i have grown up a lot the past few weeks.what i found out is that there will always be lessons to be learned in life. I realized today that i should get back to my writing because deep down in my heart i truly love investing. :) it is a passion of mine and the only thing that is stopping me are my very shallow pockets!!! hahahaha now lets get down to business! Yes i wrote about the us downfall about sometime a year ago and yes i do believe that everybody will be affected because the world now is so interconnected with each other but!!!!!! take note i still believe that asia will also be affected but maybe just half as bad as the americans and hopefully the former will lead the way when everything calms down. :) there are a lot of bargains in the market but in my opinion our market will still continue togo down. :) just my opinion. :) having a democrat president will be a great help in improving the us economy because if it was a republican again he'll just be interested in waging wars against other countires. :) change has finally come to the united states and i believe Mr Obama will be a good president. :) our market will still be a roller until next year in my opinion. :) you will hear more from me guys!!! thank you chief spyfrat for giving me a telling me and giving me a slight nudge that i should write again. :) God bless all of you. God loves us. :) take care<br /><br />ps. to the girl who broke my heart<br />i have no hard feelings for you<br />i dont have any ill feelings towards you<br />i learned so many lessons with what happened<br />between us and with pain there are<br />lessons to be learned.<br />Some things just have to happen<br />in your life to shape you.<br />I now see the wisdom why it had to happen....chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com2tag:blogger.com,1999:blog-33146020.post-6578621762425893222008-08-27T01:44:00.000-07:002008-08-27T01:57:18.147-07:00the brand<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnxISghamdiBNthoUAxzevVoHbtlwPy7hWuVyq9TiX2WzspMghsZLDmK7GsnoqgOiKtCf5KxzX7gQYdcZOFk9cRzQHnm41PCPtENNyFDKbpkSlcCbDWxe-YO5P0YTiaiPmCIbR/s1600-h/coke.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnxISghamdiBNthoUAxzevVoHbtlwPy7hWuVyq9TiX2WzspMghsZLDmK7GsnoqgOiKtCf5KxzX7gQYdcZOFk9cRzQHnm41PCPtENNyFDKbpkSlcCbDWxe-YO5P0YTiaiPmCIbR/s200/coke.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5239115987862855026" /></a></p><p>A brand name according to mr webster is the name which a given brand of goods is known. A brand is an identifying mark;trademark. Or something that distinguishes it from other goods. :) from an accounting point of view this is an intangible asset because it is something that cannot be quatified but i do believe that it is a very powerful weapon that can be used by any company. :) a perfect example of this is my friend's dad, we were discussing about stocks one time and he mentioned that he only buys ayala stocks. The main reason is that you believe in the product or in the company. :) he believes that the company is ethical and always puts shareholder interests first. :) it is the ayala brand for my friend's dad that set it apart from other companies knowing that the company stands for excellence. :) another example here is jollibee and mcdonald's. Why do people prefer the bee over ronald macdonald? :) maybe because people here see that jollibee is more suited for the filipino tongue or is it something that they can identify with? There are so many questions to be asked but one thing i do know is that a strong brand will definitely have an advantage over its competitors. :) a firm believer of this is nobody else but mr warren buffett himself. :) but we do have to admit he was more a student of benjamin graham when it comes to value investing but his path what somewhat influenced by his partner mr charlie munger. :) if it wasnt for charlie munger buffett wouldnt have bought see's candies which was five times its book value, coca cola, american express, just to name a few. :) but munger showed him that even though the company was five times its book value there was still value to be found because the see's candies brand cannot be quantified. :) it doesnt show in the financial statements of the company. :) just doing a little survey among my friends i asked what softdrink would they rather have?? pepsi or coca cola. :) the answers that i got were interesting. :) around 2/3 of the respondents wanted to have a coca cola. :) i got a lot of answers saying that they were already used to drinking coke and that it tastes better. :) i also believe that the advertisements have an influence on the preference of the respondents also(this is just a theory of mine) because the ads condition the viewer subliminally that coke is better. :) and we do have to admit that coke is the stronger brand because just the bottle itself is recognized by millions of people around the world. Another theory of mine is that there is really brand loyalty by consumers. :) the coke distribution network here in the philippines, i believe, is superior compared to its counterparts which makes us come to the conclusion that by the time its competitors are able to penetrate the different parts here in the country most of the time coke was already there first. And when consumers are comfortable or get used to a certain product most of the time they will stick it out with the product. :) that example also applies for smart here in the philippines. :) being the first to really have the widest cellular coverage in the country so it also follows that a lot of people had smart as their first cellular network and a lot of those people have continued to patronize the said network which makes it really hard for other networks to equal their subscriber base. :) and another question i was sharing with my best friend the other day... what if a diffrerent container was used and you put coke inside it and the name on the bottle will be “coco-cola”. Will it sell as good when it was in the distinct coke bottle with the red coca cola logo on it?? :) now you tell me will you yourself buy the product? :) thank you so much for your time. :) for any comments, questions and suggestions please email me at compounder888@gmail.com. God bless to all of you. :) good luck.<br />ps. today its been two years that i have been sharing my thoughts with all of you. Thank you for joining me in my journey. :) happy birthday mr warren buffett. :)<br /><br /></p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com3tag:blogger.com,1999:blog-33146020.post-53264345138994246082008-08-20T02:11:00.000-07:002008-08-20T02:53:26.763-07:00a thought<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglXH3bBEOflCAOJ4Azn9ab0cGjUyEnYp2a2lCKy0wI4sipdP7vZxaOhyeNU9piSw2B5KL3-U7V5y8CxCr7l50khnI-TKe0UoBSb6WLbe2GuaF_LuWMJq_1Q5Vf2Z4dbANtkZd1/s1600-h/grocery.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglXH3bBEOflCAOJ4Azn9ab0cGjUyEnYp2a2lCKy0wI4sipdP7vZxaOhyeNU9piSw2B5KL3-U7V5y8CxCr7l50khnI-TKe0UoBSb6WLbe2GuaF_LuWMJq_1Q5Vf2Z4dbANtkZd1/s200/grocery.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5236535306612346098" /></a><br /></p><p></p><p></p><p></p><p></p><p></p><p></p><p>Americans are getting stronger. twenty years ago, it took two people to carry $10 worth of groceries. today, a five year old can do it. - henry youngman</p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-12241356761541081192008-08-10T23:59:00.000-07:002008-08-11T00:08:59.305-07:00china and the world<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUd1MMNQ_7ogunye4bwUVEvifWV5J-5A1L_tFsxKsBSavzGMvbUgDQoMGKc0SizX_DgFdWRJjq45OUm98cNeRqyBPkHYe0PyRyGyY74dHkZiUqjE1CxSgYFgW76bgqJusI_S9O/s1600-h/birdnest.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUd1MMNQ_7ogunye4bwUVEvifWV5J-5A1L_tFsxKsBSavzGMvbUgDQoMGKc0SizX_DgFdWRJjq45OUm98cNeRqyBPkHYe0PyRyGyY74dHkZiUqjE1CxSgYFgW76bgqJusI_S9O/s200/birdnest.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5233151585405865570" /></a></p><p></p><p></p><p></p><p></p><p>China has finally had its break-out party and announcing to the world of its arrival with the 2008 beijing olympics. :) how will china affect the world? :) when youre on top everybody follows you. :) just like now, the american culture has a lot of influence all over the world from fastfood, clothes, music, movies and language to name a few. :) looking back at history the united states of america starting from the time of george washington took 100-150 years to be a truly world superpower and now the question is how long will it take china to get to the level that the us is in right now? Or will it ever get that powerful in the future? China is now a big threat to a lot of nations especially when it comes to industries because of china's cheap labor. China's rise to power started in the late 70's or early 80's and since then it has become a hungry machine continually expanding even up tp the point of increasing steel prices all over the world because of its unsatiable demand. The country has been expanding at a meteoric rate and has done so for a lot of years and some say that the bubble will burst soon. Well that remains to be seen. But with progress also comes a downside, pollution in china has been bad even up to the point that the international olympic committee has asked them to do something about it. Any country will welcome progress but it should always be sustainable development. :) pollution was never on their mind when coal fired power plants were being built at an average of one being opened and operated every week in the last few years and when factories were being constructed. In a way you cant blame the officials because these bring income to the city and work for the people but it also comes at a price. Just like the united states i just saw in the discovery channel last night that the us was one of the worst polluted places on the planet. This is because when they were growing they kept on opening coal power plants to supply their energy needs but now they are doing away with it .and are trying to develop clean and sustainable energy. Coal fired power plants are a short term solution with disastrous long term consequences. Tsktsk as they say yin and yang. I've seen on the discovery channel that china have spent billions of us dollars to improve the pollution problem and i laud their officials for taking action. It is never too late. :) china in terms of business and economy is now very stable but i could also say that it is still growing which is the really scary part. :) i believe that business in china has been so good that i know of a lot of people who decided to learn mandarin which shows the spread of chinese influence. :) business has been so good that world class casinos have been sprouting all over macau which of course since 1999 have been given back to china. :) these are just one of the few indicators of china's success and influence. The us right now is still in turmoil with the subprime crisis and it is also an election year and using logic, the new president on his first year still cant get things done and will still try to get the policies that he wants in place so i assume this subprime crisis will still go on for the next 2-3 years. Thats just my opinion and who knows maybe the new president can get america back on its feet right away but that still remains to be seen(lets just hope its not mccain because he will just be another george bush). :) the question, is will this even catapult china faster up in its influence in the world? :) now that is has opened its country to the world will it even increase its tourism industry? There is a lot of money in the tourism industry and it could really help the economy of any country a really concrete example is greece because i believe that maybe half of the country's income is tourism related. If only we could develop our tourism industry more here in the philippines it would really benefit us and it is nice to see that our taipans here see the potential and have invested in the said industry. I just hope our country could also develop the industry more to bring in more revenues for the country. If the balance of power does shift to asia then china and india will be the ones most likely to benefit from it but i do hope it will also benefit our country, the philippines, in a good way. :) im hoping for the best for our country. For a more stable political climate so that we could have a better investing environment. Please feel free to answer the 2-3 poll questions everytime you visit my blog. Let me hear your thoughts, questions and suggestions and send me an email at compounder888@gmail.com. Good luck and God bless to you all. :)</p><p></p><p></p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-4961752962521726042008-08-01T01:27:00.000-07:002008-12-11T02:06:30.873-08:00anino<p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9Lh5acE5Z2ctw8aCJPZ4dG3akRRVH2ngN8oriADeq937dTXvpbfWoOgL27yp2iMU33oCMEePLIJeXQtIx8STu8Zgl8Hvl4UY2K551p4drs1O3P4HM0rx2ODk73mSgvZEU56lE/s1600-h/shadow.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9Lh5acE5Z2ctw8aCJPZ4dG3akRRVH2ngN8oriADeq937dTXvpbfWoOgL27yp2iMU33oCMEePLIJeXQtIx8STu8Zgl8Hvl4UY2K551p4drs1O3P4HM0rx2ODk73mSgvZEU56lE/s200/shadow.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5229463488322212018" /></a></p><p></p><p><strong>mayroon akong kasama</strong></p><p><strong>saan man ay dala-dala</strong></p><p><strong>nang dumilim ay nawala</strong></p><p><strong>wala na akong kasama</strong></p><p></p><p></p><p> </p><p>this was a poem a wrote when i was in high school and i decided to write it here right now to reflect my mood. i just want to vent out my loneliness, frustrations, disappointments and anger. i just want to get it out of my system so that i could function properly again. </p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-28483870515908247772008-07-31T00:34:00.000-07:002008-07-31T00:53:14.133-07:00exhausted<p>hello again everyone. its been quite some time since ive written something here in my blog. july has been a very busy month with me and to be honest with you im even feeling a bit under the weather writing this article. my friends and i did some fund raising for the flood victims here in iloilo, then i had some relationship problems and a ton of work at the office. as my friend's dad told me at a party at their home "we're getting clobbered" referring to the philippines stock market. :) i too physically am getting clobbered just like the market. but its okay i know i will recover. i just need to rest a little.i was able to get some information on some stocks and i will be writing about it soon. :) please bear with me just for awhile. i see a lot of great stocks selling on bargain prices right now. :) if you have excess cash and willing to invest for the long term now is a great time to do so in my opinion. there is not much to say right now then you dont have to buy you could just wait for the market to stabilize and then dive in. :) i will definitely have a better article for you next week. :) for any comments, suggestions and questions please email me at compounder888@gmail.com.</p><p>ps my former best friend is such as asshole. hehehe good luck to you all</p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-39670166402105458272008-07-09T23:59:00.000-07:002008-12-11T02:06:31.565-08:00we all need lubricants!!!!!!!!!!!!!!!<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpLWOo0tIgcJJEQ2ZSFNV3Kn5-3-oXTvVuYJJyraiKcNQDP53U14B-tp9XtUbSqTtHYzb1eSEeUQf5aBn9W7NqscFHFN6j7HxWnbEOVqhWevUmHC1zmwmX-1Xw3M3JrDDLkhMs/s1600-h/oilpara.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpLWOo0tIgcJJEQ2ZSFNV3Kn5-3-oXTvVuYJJyraiKcNQDP53U14B-tp9XtUbSqTtHYzb1eSEeUQf5aBn9W7NqscFHFN6j7HxWnbEOVqhWevUmHC1zmwmX-1Xw3M3JrDDLkhMs/s400/oilpara.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5221277415580045682" /></a><br /><p><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGEmOGe1sTEJgD1HXnINjNse_QZagr6AjRNDip6VCF4rcKVzeJQV-v31NAMkSyp_pREXxGsYtlndtXndqk8C1Ln4tOFSorMnt0Hm3EBuWFPto93ZUsdBciiMxnldzyOAFF9S82/s1600-h/oilpara1.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGEmOGe1sTEJgD1HXnINjNse_QZagr6AjRNDip6VCF4rcKVzeJQV-v31NAMkSyp_pREXxGsYtlndtXndqk8C1Ln4tOFSorMnt0Hm3EBuWFPto93ZUsdBciiMxnldzyOAFF9S82/s400/oilpara1.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5221277414090975666" /></a><br /></p><p>oil's is in its last parabolic leg. time analysis suggest it should end july til sep (max early oct) as base 3 (or the period covered by X) is only 10 months. in the sample chart of broadvision, the perfect parabolic curve of its X is also 10months and its last leg was due on the 8th time bar. on it's 9th time bar, broadvision broked the key reversal red trendline. im just fascinated by the resemblance of oil's parabolic with broadvision. unfortunately, prices cant be determine but if we use mathematical proportion we can guess. <br /><br />broadvision x = 90, high = 138 (did not doubled in percentage but the leg is shortest in percentage increase); gain = 53%<br /><br />last leg parabolic started 138 to 192 within 8 time bars.<br />% change = 192/138 = 39%<br /><br />ratio of % gain: last leg parabolic of boradvision is 73.5% of it's X percentage gain. to show = 39/53 = 0.735<br />----<br />oil's x = 50, high = 98 ; gain 96%<br />oil's last leg started at 88 (base of red trendline)<br /><br />solving for "guessed" max/high price of oil's last leg:<br /><br />formula: projected max/high price of last leg = (start of oil's last leg parabolic) times (1+(percentage gain of oil's X) times (ratio of % gain of X and parabolic of broadvision))<br /><br />given:<br />ratio of % gain of broadvision's X and last leg = 73.5% or 0.735<br />start of oil's last leg parabolic = 88<br />% gain of oil's x = 96% or 0.96<br /><br />compute:<br />projected max/high price of last leg = 88 x (1+(0.96 x 0.735))= $150/bbl<br /><br /><br />caveat. there's no relation between broadvision and oil except similarity of their charts. there are other parabolic chart sample other than broadvision which could lead to different ratios and proportion. so happen both charts have similar wave counts (base 2 to base 3) and time correction pattern (base 4) as well as valid trendlines (4 of them with the red trendline as the key).<br /><br /><br />Support the street children movement.<br /><br /></p><p>this is spyfrat's post. :) spyfrat is a fllod victim and yet he still had the time to write something for us here!!! a true testament for his love of investing and trading. :) i decided to add little flavor to the blog by having a guest writer from a different school of thought. :) but of course i still believe the your investing style really depends on what your goals are and your tolerance for risk and patience. after all short term investors and long term investors are after the same thing PROFIT! we just have a different process of doing it. as they say in school in math class "the process doesnt matter as long as you get the right answer."</p><p>ps for any comments, questions or suggestion please email me at compounder888@gmail.com</p><p>i will also try to have a fundamental analysis of oil next time if i have the time. :)</p>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-48920331987056690792008-07-04T00:11:00.001-07:002008-12-11T02:06:32.408-08:00typhoon frank<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhX6hiDeWRnyk7jQvzz65GARCVoh2mvOAC0WSQTdFBIcpJRKYdJstl8tmRViTOhZElYZB6RUNN2a7HmWpPXd3TmkTQCSVV0oHhqeLufAjj6iknS_hoG3ALt_sC1LwWIbo8anF4S/s1600-h/june+08+117+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhX6hiDeWRnyk7jQvzz65GARCVoh2mvOAC0WSQTdFBIcpJRKYdJstl8tmRViTOhZElYZB6RUNN2a7HmWpPXd3TmkTQCSVV0oHhqeLufAjj6iknS_hoG3ALt_sC1LwWIbo8anF4S/s200/june+08+117+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5219053862409475314" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs8FmTr0A2bEOylzlpWanQmOIWIDUdVLnxeuL6JijtLsPZu-3zj-nf6AIQ1_TULwlWnZzzincLMVAN5CcMUeWDSYofpj33j0kFlxSukxw5fjWf76Amnb-WgmU1bxGTEYl0KXNL/s1600-h/june+08+123+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs8FmTr0A2bEOylzlpWanQmOIWIDUdVLnxeuL6JijtLsPZu-3zj-nf6AIQ1_TULwlWnZzzincLMVAN5CcMUeWDSYofpj33j0kFlxSukxw5fjWf76Amnb-WgmU1bxGTEYl0KXNL/s200/june+08+123+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5219053867453013202" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi262aV3Lxc64tG6DTMPYs3cIDf8_GsTwb0itboHwQD9wak5v7H6P7j28Xbw9bsW__ONPWzKnXBFCRxqzkTgyc88Ew2j3vCixyLWTvR7dD9BodJ2zhIKGVnFJ1Pui2UUASVmdfE/s1600-h/june+08+132+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi262aV3Lxc64tG6DTMPYs3cIDf8_GsTwb0itboHwQD9wak5v7H6P7j28Xbw9bsW__ONPWzKnXBFCRxqzkTgyc88Ew2j3vCixyLWTvR7dD9BodJ2zhIKGVnFJ1Pui2UUASVmdfE/s200/june+08+132+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5219053873775647138" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4m0lu0einq256cXs4DIwJJ4YTwt89wZYmFnS1DRCU5RaNSW90rg9idq-Xy-yOI1t7vyDNbkYDkeupYY37w60WgV70NZHpAUd0FqZbKqJa-XRTUP-fjunvon_Z6SAI9lRO6rpD/s1600-h/june+08+135+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4m0lu0einq256cXs4DIwJJ4YTwt89wZYmFnS1DRCU5RaNSW90rg9idq-Xy-yOI1t7vyDNbkYDkeupYY37w60WgV70NZHpAUd0FqZbKqJa-XRTUP-fjunvon_Z6SAI9lRO6rpD/s200/june+08+135+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5219053873702590914" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkTyjmkgyqt7QqJa0YY_DHMdyU9AEcW9qCbUuL5SmmPGES2x8UA8AUcRVwPECsXMKnfxX1YLDcuGNTYfZ9mG-pKBYK4GxeRyrthodfwFU5zChSFYjGhBIauUrphUOIclC8aCY-/s1600-h/june+08+136+edit.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkTyjmkgyqt7QqJa0YY_DHMdyU9AEcW9qCbUuL5SmmPGES2x8UA8AUcRVwPECsXMKnfxX1YLDcuGNTYfZ9mG-pKBYK4GxeRyrthodfwFU5zChSFYjGhBIauUrphUOIclC8aCY-/s200/june+08+136+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5219053879057654706" />i will let the photos speak for itself. typhoon frank has hit iloilo hard. help is badly needed here. my high school batch is raising funds for the flood victims. please email me at compounder888@gmail.com if you want to make a donation. thank you very much and God bless.</a>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-35279515634272567472008-06-20T01:20:00.000-07:002008-12-11T02:06:32.542-08:00basketball, investing and life<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFDg8xpNo5rDR8D8-aLCtBeNZAMdHjCN36R_vBlENrw3wrpWvWuule9glLoC9tkapexmJpoIFoErUPL6210BKNyUgDofFY3Vw-bF7SB9q8L-8FluZXrrOEHk3dO5aPd1Si2k8k/s1600-h/boston+celtics.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFDg8xpNo5rDR8D8-aLCtBeNZAMdHjCN36R_vBlENrw3wrpWvWuule9glLoC9tkapexmJpoIFoErUPL6210BKNyUgDofFY3Vw-bF7SB9q8L-8FluZXrrOEHk3dO5aPd1Si2k8k/s200/boston+celtics.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5213876201974761218" /></a>Getting emails from readers and maybe some avid readers really puts a smile on my face. :) thank you so much for giving me a piece of your mind. :) and a reader sent me a mail today and maybe i could say “challenging” me to use the 2008 nba finals for tips on how to invest. :) well dear sir i am up to the challenge of doing so and it really got my juices flowing to write this article. :) im sure you might have noticed that i am a basketball freak from a few articles of mine about basketball. :) im going to write about the 2008 nba finals, the boston celtics and the los angeles lakers. We will use basketball to learn more how to deal with life and how to invest better. :)<br />during the regular season of the nba the boston celtics were able to have the league's best record with 66 wins and 16 losses and a very big improvement from last year's record of 24-58. the team before the season started was bolstered with trades for kevin garnett(one of the most versatile big men the game has ever seen but has never had any playoff success) and ray allen(one of the deadliest shooters the game has seen but also has never been to the nba finals). The celtics was one of the favorites to win the championship at the start of the season with the new player additions but there were also doubts if the three big stars could play together. :) they showed everybody that they were serious of winning a championship and played beautifully together leading to the nba's best record. :) los angeles on the other hand had a shaky start to the season with kobe asking the team that he be traded. But all ended well when trade talks ended up empty and the lakers got lucky and were able to trade for the spaniard pau gasol from the memphis grizzlies. The trade definitely strengthened the team and instantly made them championship contenders. :) with this we see management coming into play and how important it is in both team's succes. With danny ainge and boston coach doc rivers they were able to get three great players(i should also say future hall of famers) to play together and blend their talents with the rest of the team and eventually win the nba finals trophy. :) the los angeles management and phil jackson on the other hand were able to let kobe stay with the team and surround him with players that would complement him. So here is my point when it comes to investing, good management will always go a long way. :) and my next point is that good management also needs a good product in order to succeed and in basketball it is the players that is their asset. :) good products and good management are important ingredients for success just like both teams we mentioned. :)<br />at the start of the playoffs everybody started doubting boston already because they barely got eliminated in rounds one and two with supposedly “weaker” teams but they started playing better in the eastern conference finals dispatching the powerhouse detroit pistons and played even better in the nba finals. The los angeles lakers on the other hand continued their beautiful play from the regular season easily defeating their opponents denver and utah in rounds one and two. They even eliminated the defending champions san antonio spurs in just five games. :) there are a few factors on why the boston celtics were able to beat the lakers. :) ive read expert articles and predictions before the start of the finals and according to the so called experts in almost all the positions the lakers had the edge and 80% of them predicted that los angeles was going to win in six games. :) but what happened????? boston won it in six games with some of the factors that i am going to mention. Home court advantage as they say there is no place like home. :) boston has always been known to have one of the best fans in the nba and with your city behind you it even makes you wanna play harder. :) boston wanted it more, they just wanted to win more and it is very evident with the way they play. The perfect example was paul pierce in game one when he sprained his knee but opted to continue playing cause for him it was now or never in winning a championship which really inspired his team. They played more intense, more passionate and with more desire. Players like rondo and perkins also got injured during the series but continued playing and helping their team and i could say that they were in inspired by their leader. The team with more desire to win the game will surely win it. :) it seemed to me the intense play of the celtics “rattled” the lakers and lead them to fall apart. It is not enough to have a plan because what is really essential is having a great plan and being able to put it into action and the lakers failed in this for they got away from their game plan. :) boston's bench outplayed la's bench. During the regular season the lakers played really well because they had great support from their bench but in the finals the la bench was really outplayed what could be the reason???? i really couldnt explain but i think it boils down to who wants to win more. Boston was able to control superstar kobe bryant and he never dominated the series. How did boston do this??? by scouting and studying their opponents carefully. :) just like in investing everything starts with research and i believe is a very big factor in success. :) they controlled kobe forcing him to be more passive in offense and pass off to his teammates and make them beat boston and they never stepped up and maybe i could say they were demoralized too seeing their leader having a hard time with the celtic defense. :) if you really look at the celtic team there is nobody who could defend kobe one on one. What boston did was to have a first defender and behind him was a second defender and the rest of the team waiting for him. This is teamwork at its best. :) boston had a good plan and executed it to perfection. :) boston really played like a team passing the ball, everybody contributing and playing their roles well and playing good team defense. :) in the nba it is not enough to have talent but also to have the heart and will power to win. It is what separates the good players from the great players of the game. :) these are the players that inspire the rest of the team to follow their lead to victory. :) the 2008 boston celtics i believe was one of the best teams that this league has seen in a very long time, one with talent and heart. This was really displayed during game4 of the finals when boston overcame a 24point deficit to win the game(mind you on their opponent's home court) and only great teams have the character and capacity to accomplish feats like this. They just might have destroyed the morale of the lakers organization just like the dallas mavericks when they had their game3 blunder against the miami heat in the 2005 nba finals(the organization was never really able to recover from that loss). Hopefully this does'nt happen to the los angeles lakers for i have been a big fan since the 80's when kareem and magic were still playing but i decided this time to root for boston because i know that my “best friend” (who is a traitor) bet a lot of money for the lakers to win the series(if my sources are correct around P120K). :) and another reason for cheering for boston was that the big 3 kevin garnett, ray allen and paul pierce are all gentlemen of the game and truly deserve to win championship. :) in the more than 50 years of the nba boston and la met each other in the nba finals for the eleventh time and after this series boston has dominated la 9 wins to 2(of the 17 championships of boston 9 were at the expense of the lakers). why is that so???? i believe it is in the philosophy of the organization. Boston has always been team oriented, efficient and has always been known for their defense while la on the other hand has always been known for their big name superstars and their offense. Just a brilliant example that most of the time defense will always win over offense because with defense the margin of error is lower. :) i hope you enjoyed reading and this helps you with your investments and in life. :) good luck<br />ps. i didn't bet any money on the series. Hehe im just happy that boston won. :) for any comments, suggestions or questions please email me at compounder888@gmail.com. :) to a few who asked about oil, gold, biodiesel(luckily ive been researching on the subject for a few months now), commodities, food prices, food crisis and about some stuff ill try to find time to write about it. in chiefstocks we just dont talk about stocks and business but also about life and how to make it better for everyone!!! good luck and God bless you!!! till next time. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-91470599820668808862008-06-11T19:17:00.000-07:002008-06-11T19:26:04.589-07:00The Law of One Priceprices and economic incentives:<br />comparing apples and assets<br />We expect the same thingto sell for the same price. This is the Law of One Price. Why should this be true? Common sense dictates that if you could buy an apple for $0.25 and sell it for $0.50 across the street, then everyone would want to buy apples where they are cheap and sell them where they are priced higher. Yet this price disparity will not last: as people take advantage, prices will adjust until apples of the same quality sell for the same price on both sides of the street. Furthermore, a basket of apples must be priced in light of the total cost of buying the fruit individually. Otherwise, people will make up their own baskets and sell them to take advantage of any mispricing. the arbitrage relationship between individual asset prices and overall portfolio values is explored later in this chapter.<br />The structure imposed on prices by economic incentives is the same in financial markets as in the apple market. Yet a different approach must be taken to determine what what constitutes the “same thing” in financial markets. For example, securities are the “same” if they produce the sane outcomes, which considers both their expected returns and risk. They should consequently sell for the same prices. Similarly, equivalent combinations of assets providing the same outcomes should sell for the same price. Thus, the criteria for equivalence among financial securities involve the comparability of expected returns and risk. If the same thing sells for different prices, the Law of One Price is violated, and the price disparity will be exploited through arbitrage. Thus, the Law of One Price imposes structure on asset prices through the discipline of the profit motive. Similarly, if stocks with the same risk have different expected returns, the Law of One Expected Return is violated.<br /><br />Economic Foundations of the Law of One Price<br />The Law of One Price holds under reasonable assumptions concerning what investors like and dislike and how they behave in light of their preferences and constraints. Specifically, our analysis assumes the following:<br />More wealth is preferred to less. Wealth enhancement is a more comprehensive criterion than return or profit maximization. Wealth considers not only potential returns and profits but also constraints, such as risk.<br />Investor choices should reflect the dominance of one investment over another. Given two alternative investments, investors prefer the one that performs at least as well as the other in all envisioned future outcomes and better in at least one potential future outcome.<br />An investment that generates the same return(outcome) in all envisioned potential future situations is riskless and therefore should earn the risk-free rate. Lack of variability in outcomes implies no risk. Thus, strategies that produce risk-less returns but exceed the risk-free return on a common benchmark, such as the U.S. Treasury bills, must involvemispriced invesments.<br />Economic incentives ensure that two investments offering equivalent future outcomes should, and ultimately will, have equivalent prices(returns).<br />The process of a short sale are available to the investor. This assumption is easiest to accept for large, institutional investors or traders who may be considered price-setters on the margin. Even is this assumption seems a bit fragile, market prices generally behave as if it holds wel enough. The nature and significance of short sales are discussed more later in this chapter.<br /><br />Systematic, persistent deviations from the Law of One Price should not occur in efficient financial markets. Deviations should be relatively rare or so small as not to be worth the transaction costs involved in exploiting them. Indeed, when arbitrage opportunities do appear, those traders with the lowest transaction costs are the ones likely to be the only one who can profitably exploit them. The Law of One Price is largely-but not completely-synonymous with equilibrium, which balances the forces of supply and demand.<br /><br />This article was in response to an email sent to me asking if there was a law(like supply and demand) that could support value investing. Then here it is for everyone to read. This was taken from the book “understanding arbitrage: an intuitive approach to financial analysis” pages 5 to 7 by randall billingsley. Wishing you all good luck on your life and in your trades and investments. :) for any comments, questions or suggestions please email me at compounder888@gmail.comchief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com1tag:blogger.com,1999:blog-33146020.post-14210779378247117702008-05-28T20:32:00.000-07:002008-12-11T02:06:32.696-08:00the new philippine heroes<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLsAxWi2hD2NZ9m7rS6Ff_hu2JKOs-PjzzWGpVHZAUYBssMOdfM766ldoyA0yKGxiq5BCLC6sSuHSw7Reb6EVOa7GsxgikJeZ6p748E3hISaga6x5hb49YBwtAwclqWbre9mE3/s1600-h/greece+08+1916.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLsAxWi2hD2NZ9m7rS6Ff_hu2JKOs-PjzzWGpVHZAUYBssMOdfM766ldoyA0yKGxiq5BCLC6sSuHSw7Reb6EVOa7GsxgikJeZ6p748E3hISaga6x5hb49YBwtAwclqWbre9mE3/s200/greece+08+1916.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5205638005728809394" /></a>Hello again everybody im back after a three week hiatus for a little vacation. :) it was a good break after a year of hardwork. :) and of all my vacations i have to say that this one gave me a lot of realizations. :) first realization of was of being how rich the greek culture is and how much it has influenced the world and especially the roman culture. As they say “the glory that was greece, the grandeur that was rome.” and how true it is. :) and the next i will explain further in this article. :) the first part of the vacation was a land tour around athens, kalambaka, meteora, delphi and olympia. :) and the second part was a cruise around the greek islands mykonos, patmos, heraklion, rhodes and santorini. :) the cruise ship had around 2,000 more or less passengers and it had 432 staff members of which more than a hundred were filipinos. :) and the filipino crew members recognizing us being their “kabayans” they were friendly and were asking about how things are back home and told us about their lives in the ship which really touched me. Compared to working in the philippines there is no doubt that they are paid better working abroad but the sad part was that they were in europe and all their expenses were in euro but they were paid in us dollar(greeks are smart eh?). :) they usually have contracts of 8 months and mind you there is no day off and they work 12-13 hours a day. Tsktsk i remember a waiter telling us that sometimes he or most of his fellowmen in the ship get home sick and are too tired to keep on working but just receiving one text message from loved ones back home and it is enough to keep them going. I was really touched when i heard that. Then the first filipino staff member that i met in the ship was mike the head bartender and his story was that he sends back 80%-90% of his salary back home because he has three kids who are going to school. Can you imagine such sacrifice. He was also a champion in a singapore bartending event and he is even given a 30minute bartending and juggling exhibition in the ship for its passengers and i curiously asked him if he is given extra because of that skill. Then he told me that he didnt ask any extra pay from the company for that but in exchange he just asked that his brothers also be taken in the company for work and he has three brothers also working in different departments for the same company. Such a touching story. :) he even gave me a hundred dollars to bring back home and left me the choice of jewelry that will fit his budget for his wife because it was her birthday. :) then another was a waitress from iloilo also and she told us of her plans that she was going to save enough money to buy a van for her mother back home to start a rent a car business and help the whole family. :) and she also sent a $100 through us for her mother. It was really touching to hear stories of our heroes abroad. They are truly our heores for if it wasnt for the ofws our country wouldve been in much worse shape. They have basically helped sustain our economy. Helping kids go to school, helping build homes and helping millions of other filipinos live better lives. :) the government should do something so that our fellowmen wont be forced to go abroad to find work. More jobs should be generated here in the country! :) the ofws are our modern day heores! Long live the ofws! Long live the filipino and the filipino spirit! :) God bless and take care. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com1tag:blogger.com,1999:blog-33146020.post-16692841543644652792008-05-10T00:22:00.000-07:002008-05-10T02:39:27.366-07:00"I've been rich and i've been poor: believe me rich is better."gloria grahamechief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-72686269426705405382008-05-01T01:30:00.000-07:002008-12-11T02:06:32.895-08:00iba ang langhap sarap<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvn3PDXRFIUNnthfdRFmYjEtXLkROr7EykgWjALekHHK5XkOS-6Pkx0huO762_ZlT1rD474GPxBoxJeRJ0P53sNZlWYuvsMEZ22y_aJIWs9x5INWzRYj6tiCTenwJ4zoDZy-BQ/s1600-h/tony+tan+caktiong.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvn3PDXRFIUNnthfdRFmYjEtXLkROr7EykgWjALekHHK5XkOS-6Pkx0huO762_ZlT1rD474GPxBoxJeRJ0P53sNZlWYuvsMEZ22y_aJIWs9x5INWzRYj6tiCTenwJ4zoDZy-BQ/s200/tony+tan+caktiong.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5195324213334627954" /></a>Hello there again everyone and i do hope all is well with you. I recently just had a check up with the doctor because i have been having heartburns recently and i was afraid there was something wrong with my heart and i had a sigh of relief when the doctor said that my heart is normal and the cause of the heartburns were acid. Tsktsktsk so my advice to all of you dont skip meals and eat at the right time. :) anyway its also ironic that the topic that ill be discussing with you today is something very close to my heart, it is FOOD!!! hehehe especially fastfood. :) one thing is for sure, we all have to eat, sleep and drink. :) there were two gentlemen who e-mailed me about jollibee and whats my opinion about it. Im sorry it took me quite some time to reply and to a few other emails ill reply soon. :) Hopefully, i can explain this to you clearly. :) when i first bought jollibee three years ago it was only P24.00 per share. :) thats was after i did my research. :) jollibee back then was the number one fastfood chain in the country and still is until now. :) and i am glad to say that the philippines is one of the few countries and possibly the only country where mcdonald's is present and the latter is not the number one fastfood chain in that country. That my ladies and gentlemen is a very big testament of what a great company jollibee is(by the way im just talking of jollibee fastfood and that doesnt include the other companies that it acquired chowking, greenwich etc). Ronald mcdonald is no match for the bee here and a big part of that is the tan caktiong family which is headed by mr. Tony tan caktiong. :) a truly dynamic leader and visionary in the food industry here in the philippines. Transforming a small ice cream parlor into a fastfood chain with branches philippines even up to tawi-tawi or is it jolo im not sure exactly where but around that area which is just open on weekends. :) doesnt matter if youre just open two days a week because if i have it right its sales there every weekend is around the six digits range. :) i hope mr ronnie mcdonald can say he has a branch there. :) so if some people say that jollibee has no room to grow then its true! Where else would it open??? when it is almost everywhere now. :) when youre number one there is very little room for growth and it is so hard to stay at the top but when youre catching up then i do believe there is still a lot of room for you to grow. :) with this dillema jollibee made a great move acquiring companies and not just any company but ones within their core competence. :) great fastfood companies and restaurants. :) not like san miguel when they had no room for growth they acquired different kinds of companies even investing in the power sector????? thats not the right way to invest, it should always be something that is within your core competence. :) jollibee acquired chowking, greenwich, red ribbon, delifrance and yonghe king and i hope i didnt leave out any company. :) now with that there will be ensured growth in the company for years to come. :) so now back to jollibee to make sure things are still the same i did a survey among family, friends and employess be it young, old, rich or poor it really doesnt matter i just wanted to get the people's beat. :) the results that i got are interesting. :) among social classes a,b and c here are the results: among the a market it is almost a tie between jollibee and mcdonalds. :) the former here has a very slim lead over the latter. :) i would estimate not over 5%. :) in the b and c market it is really dominated by jollibee which i would say more or less has 60%-70% of the market share here. Im sure you guys are familiar with the social structure here in the country which is 10% - a, 20% - b and 70% - c. then you can do math with that. :) it shows you the dominance that jollibee has over mcdonalds. :) here are some of the impressions that i got doing the survey...with jollibee it appeals more to the “masa” and to the kids. People also have an impression that the food prices in jollibee is cheaper. And people prefer jollibee because of the chicken, pies, palabok and spaghetti :) a little trivia it is only here that mcdo serves spaghetti :) a true testament of jollibee's dynamism which mcdo was forced to copy. :) and jollibee's number one food is not their burgers but their chickenjoy. :) now with mcdonalds i got the impression that more sophisticated people eat here and people go there for the burgers and the fries which i also would agree but in fairness jollibee has improved with their fries the last few years but still mcdo has that edge in that department. :) but i think the one big edge that the bee has over mcdo that can never be changed is that jollibee is filipino. :) they are closer to the filipino's heart because it is truly ours and they are able to cater something that is to the filipinos liking and taste. :) i remember this jollibee advertisement 10 years ago when our country was celebrating our centenial celebration there was this advertisement of a kid and marlou aquino with the philippine flag in the background and the line at the end was “iba ang pinoy”. I believe that mcdonalds wasnt able to counter that. :) i do know that mcdonalds is also a great company and their food is great too but in the battlefield it is just like the americans and the vietnamese during the vietnam war. :) the locals just knew more about their country. :) jollibee is truly one great story of a david fighting the goliath and succeeded. :) God bless everyone and good luck in your investments. :)<br />ps: for any comments, suggestions or questions please email me at compounder888@gmail.com. please also feel free to answer the poll questions :) i will always make sure that there are 2 or 3 poll questions open everytime you log in. :) please forgive the typographical errors that i commit sometimes :) i just have to keep on writing when i have a good idea. :) good luck on your endeavours. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-89556709840827356482008-04-28T00:51:00.000-07:002008-12-11T02:06:33.114-08:00benjamin franklin<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOZ7Gk4w8eYO93Ctv6izPy49WFMbrn-SUOZKg6NhAE8v8o1IrOgMCAsn3eb51-zd9lJl-CXwTkWdcdVZu8GPWRToH_ghfJ1A0aMbkYvpM5qonfuUXYiRTxRx18bcWJE67VnQ0W/s1600-h/benjaminfranklin.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOZ7Gk4w8eYO93Ctv6izPy49WFMbrn-SUOZKg6NhAE8v8o1IrOgMCAsn3eb51-zd9lJl-CXwTkWdcdVZu8GPWRToH_ghfJ1A0aMbkYvpM5qonfuUXYiRTxRx18bcWJE67VnQ0W/s200/benjaminfranklin.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5194201139516266066" />an investment in knowledge always pays the best interest. :)</a>chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-24721506794554963082008-04-16T20:11:00.000-07:002008-12-11T02:06:33.674-08:00rice rice baby<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUNu46p4VqayzVxXgkcwQVMEVZRQmFm5GtbvpshahHVAlvU6B4SrYjLWibWVkRls54BP5_kcxLTmpqLri0hRUa6rSiLbMKzVuoCGp34D9V5pdpCMHlj0A0BrMAPPeaTqt2-qRZ/s1600-h/rice.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUNu46p4VqayzVxXgkcwQVMEVZRQmFm5GtbvpshahHVAlvU6B4SrYjLWibWVkRls54BP5_kcxLTmpqLri0hRUa6rSiLbMKzVuoCGp34D9V5pdpCMHlj0A0BrMAPPeaTqt2-qRZ/s200/rice.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5190047109405169218" /></a>I have always stated that the us is going to suffer a recession and i am that happy that somehow it really happened and i didnt make myself look like a fool. ;) but after that i also stated that prosperity will transfer here in asia and after a few months this year it hasnt looked promising..... tsktsktsk :-( and my dad has consistently repeated that we are in a crisis right now and after doing a little research and careful study on the subject my father was right on a lot of points and maybe without being conscious about it.... the drop in the american economy drove investors and speculators alike to buy gold, oil and other commodities as a hedge against the weakening us dollar. As a result, it drove the prices of commodities up which resulted a meteoric rise of gold and oil, even reaching new highs, with almost every machine in this world being driven by oil it resulted in rising costs in everything from transportation, food and almost everything. I still believe that there will still be a shift in capital from the us to asia because in simple plain logic any businessman or investor will always put his money where he can get better returns and asia in my opinion is the next best thing after the us right now because asset prices here are not that high compared to europe and other parts of the world. :) so it might be true that capital will probably go here after the us recession but it also came at a price. Tsktsk and then there is another, the weakening us dollar and the strengthening peso, though looking at the bigger picture it is better for our government that our currency strengthened because it will lower our foreign debt which would lower our deficit and same is true with companies with dollar loans. But in return we are also lowering the purchasing power of our dollar dependent families or families receiving remittances from abroad. From P55 to P41 is a 25% decrease so if your receiving $1,000 a month a few years ago it would translated into P55,000 in expenses be it groceries, shopping or investing but now it is only worth P41,000. Ofw family budgets are definitely affected. Then you have to factor in the fact that basic commodity prices have been rising lately. Tsktsktsk gasoline has been steadily increasing the last few years. When i first started driving diesel was at P9.80 per liter imagine that???? below P10 a liter and maybe that was 10 years ago then when i had my own car in college it was at P15.00 already and now its at the P40 range already. Tsktsktsk i will put it in numbers so that you will understand the impact it has on our daily lives.:) <br />diesel is increasing at a rate of 15% per annum. tsktsk and i think it will keep on going up and with that expect fares to also go up. And i think the most serious crisis of them all right now is the rice shortage which is a staple to the filipino diet. :) they say that there is a rice shortage and i really dont know the truth behind it. Some say that this is a ploy of the government so that the people will forget about the zte deal scandal. I really dont know but what i do know right now is that a solution should be made for the rice prices to stop rising and to stabilize. Tsktsk im calling all the rice hoarders to please release whatever rice they may have for the betterment of our country. If you keep hoarding rice at this time i believe it is tantamount to economic sabotage and the government should do something about it. :) i have even heard stories that the warehouses of these rice hoaders when they were being checked up by the officials were empty but the truth of the matter is that their stock were in barges in the middle of nowhere. Calling officials please do something about this. I really dont know the truth about this. But that is the story thats been going around. Maybe its just a rumor or maybe its the truth i really dont know but every avenue to fix the rice shortage should be checked by the top men of the nfa. :) please do something about this!! :) according to my friend from the media holp-ups, burglaries and related crimes have been increasing lately which is probably because of desperate attempts for money. These are desperate attempts for money and to be able to provide for their family. Tsktsktsk another sign that a lot of the population are having money problems or hardships. Tsktsktsk im sure the government realizes this and businessmen should expect an increase in wages soon. Tsktsktsk can you see the pattern???? its a vicious cycle!!! everybody is affected in this. :) talked to a college classmate who is now an executive in the sm department store and she told me that the sales have dropped in almost all of their branches and they attribute this because of the rice shortage and it being a staple of every family. Families have to adjust their budgets for the increase of price in rice. Tsktsktsk im sure there will be bad debts here and there because of the crisis but it wont reach that level of the us subprime crisis so we dont have to worry about that. :) let us hold on tight, it will be a bumpy ride in the next few months but i know there is light at the end of the tunnel. :) every economy will undergo its ups and downs and this is something that we have to surpass. :) to put it in simple words i dont know what the market is suffering from right now. Is it just a slight fever of flu i really cant diagnose it. Hehehe :) just continue to do research and continue to find for diamonds in the rough. :) bargains are to be found at this time. :) patience is a virtue. :) i still expect oil and gold to keep on going up so better buy your loved ones some jewelry while its still cheap. :) God bless. :)<br />p.s. For any comments, questions or suggestions please email me at compounder888@gmail.com. And for questions sent to me by email last week i'll answer them soon. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-45402890945571206402008-04-10T19:54:00.000-07:002008-12-11T02:06:33.831-08:00a thought<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipD2GnUdWBqCA5YQN-SyHaiYo8mOin6z9aIMGDt-Awcd7xsxiKg5EH1Fv4f_OFAALWIaXWdHsxOzSgioMCPuJpzmA0SsYDY039I0eW1ltflOLogDWeuIlZmj2VDtexvqXcWsz1/s1600-h/risk.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipD2GnUdWBqCA5YQN-SyHaiYo8mOin6z9aIMGDt-Awcd7xsxiKg5EH1Fv4f_OFAALWIaXWdHsxOzSgioMCPuJpzmA0SsYDY039I0eW1ltflOLogDWeuIlZmj2VDtexvqXcWsz1/s200/risk.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5187816311509657538" /></a>"returns are normally beyond our control but risk is within our control." - francisco colaycochief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-85040145971193604772008-04-05T02:53:00.000-07:002008-12-11T02:06:33.983-08:00death, taxes and rising prices<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2odAofY-fK7v2ZGEGYXvNryvnUKgXUA4eqDt-MJ-MszbOtu_90OqRYMuPvk-exRpIfRKNT8_Do89p6DVcvUrdbsGaSgzHvxrAx3KiPbcHvDzeLthSYRGBTi1bS8acpi98ocp/s1600-h/inflation.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiH2odAofY-fK7v2ZGEGYXvNryvnUKgXUA4eqDt-MJ-MszbOtu_90OqRYMuPvk-exRpIfRKNT8_Do89p6DVcvUrdbsGaSgzHvxrAx3KiPbcHvDzeLthSYRGBTi1bS8acpi98ocp/s200/inflation.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5186392918413889554" /></a><br />Im inclined to write another article about this one because i just cant stop myself from doing so and that i cant stop people around me from talking about it. :) how many times have we heard our elders talk.... “when i was still a kid coca-cola was only worth P0.10” or “when i was in high school batchoy was just just P0.30” or “when i was still in school my allowance was just P5.00 a week” or “your grandfather bought this lot for only P10.00 per square meter”. :) hopefully someday i can also say that.... “i first bought urc at P6.40 per share.” or “mbt was just selling for P25.00 per share when i started investing in stocks.” :) but these stories are all so true. :) they say that the two absolute things in life are death and taxes and i could say one of the ALMOST absolute things in life should be rising prices in almost all things. :) and that also applies with stocks but.......... only with quality stocks. As warren buffett said “when holding a great stock time is your best friend but when holding a bad stock time is your worst enemy.” When i say quality stocks they are the ones with a solid business with room for growth and at the same time they have solid and honest management :) but just because those two things are present in a company it doesnt that you'll buy them right away but you wait for them to drop to a certain price wherein you could get superior long term returns. :) but that is easier said than done because one of the hardest parts in investing is the waiting...... waiting for the right price that is. :) i have done some calculations of some basic stuff that we consume like coke has increased at an average of 8.25% per annum in the last 50 years and batchoy has increased at an average of almost 12% per year. :) which brings compounding back in my head. :) im a social smoker i must admit and i have to admit that the figures and future compounded returns or losses that is could drive me to stop smoking once and for all. Lets calculate here: if i smoke a ream of cigarettes every month with the cost of a ream for the sake of simplicity at around P300 which is P3,600 in a year. And now making assumptions here are the results. This will be the money that i lost if i had foregone smoking and instead invested it in stocks:<br />15% per annum in 15 years P29,293.42<br /> in 20 years P58,919.53<br /> in 25 years P118,508.23<br /> in 30 years P238,362.38<br />20% per annum in 15 years P55,465.28<br /> in 20 years P138,015.36<br /> in 25years P343,426.38<br /> in 30 years P854,554.73<br />this is the power of compounding to you at its finest. :) and i still havent mentioned the mounting medical bills because of heart, lung, bad gums, bad teeth, insomia, yellowish fingertips and a weaker immune system caused by smoking and not to mention that men are more prone to impotence when they smoke. Phew!!!! so in the end you will lose more than the figures that i mentioned above. :) again remember that health is wealth so dont kill yourself working for money. Enjoy it also every once in awhile. :) i have made up my mind to buy a nikon dslr the d80 model. But please i dont want to count the future income that i will lose if i buy this camera..... its my new hobby and you need to have a diversion every now and then. :) enjoy life but also be prudent. God bless you always and good luck with your investments. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com1tag:blogger.com,1999:blog-33146020.post-54982008168740057882008-03-26T20:41:00.000-07:002008-12-11T02:06:34.492-08:00green is the color of money<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqZ_dyrL5FnlYDPmBz-hXbFjd8xhvwSUNZgdFY9ElGdU5dfF2-tO9Plwf4xdmsS6-gLoDauyjKbQl_YuUlmPxjAnxle-oBk1zUUDHY6JeU-9gvT3T0aMgUlYtbeEl70OJTk_X_/s1600-h/greenspan.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqZ_dyrL5FnlYDPmBz-hXbFjd8xhvwSUNZgdFY9ElGdU5dfF2-tO9Plwf4xdmsS6-gLoDauyjKbQl_YuUlmPxjAnxle-oBk1zUUDHY6JeU-9gvT3T0aMgUlYtbeEl70OJTk_X_/s200/greenspan.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5182271257343250322" /></a>For so many years the man at the helm of the federal reserve was alan greenspan and the question that im going to ask everybody reading this blog is.... “is alan greenspan a genius or a fool?” genius because for so many years he was able to keep the american economy afloat or is he a fool because of too gimmickery that when after he left his post the economy had nowhere to go but down. :) as they say the higher you are the harder the fall. :) economies by nature are cyclical meaning there will be periods of prosperity and there will be periods of depression which is normal. :) just like life itself. :) but during his long term in office which if i remember correctly is over 20years there was hardly a very serious depression. And if i remember correctly the life cycle of an economy with a great upswing and a great downswing is about 30-50 years according to marc faber in his book but i have to check on that again. :) so the last great depression was in 1929, 1973 and possibly 1987 could be considered as well but the question is when is the next great depression? Could it be happening now? Time will tell. :) the federal reserve has been drastically cutting interest rates and it hasn't had any effect yet. (another point that my friend has been raising about greenspan is that if he raised interest rates a bit during his term the crisis wouldnt be this bad) I have a little opinion or theory if you'd like to call it. Interest rates have been lowered so where are people putting there money? For sure its not in stocks and most likely it is also not in real estate because of the subprime mortgage mess. So where are the americans, investors and fundies putting their money? Possibly in assets outside the us and most likely in commodities which would explain the rise in prices. And could it be possible??? according to the charts, gold has a mimun upside of $1,250 and with this credit crunch fundamentally the us economy will stay down for a while and the most likely place that people will place their bets in would be commodities so hold on tight guys. :)<br /><br /><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOU-_VXDil4skdNtTrxgLDoX8-yAhxby7L3JbTXeRPm3o-uFSbswhiHjnnb13WlDjMMpY8Bev1swJKcL8YtTzcNVmrDBqhBCrV5guFWtY9sKh1W3sf4Lq1VgotuuDMVdjHHT97/s200/cayetano.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5182321160568262626" /><br /><br /><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIoGxtb_xHsyEBexv8TPIfSXwkB0dyaT3F8A2YQR8L9dgvIJt-1d9bnUjg6oBz0dH5VlkYlLoxlAm1RcOIfXt1aBUWkc1kgUcl3PxWqfo2n8ebaYbeGfysvRp9DK3Hq2mCC9ey/s200/jamby.gif" border="0" alt="" id="BLOGGER_PHOTO_ID_5182321555705253874" /><br /><br /><br />maybe you guys are wondering why i made a poll about jamby madrigal and pia cayetano. It was just an idea that came up when they had a cat fight in the senate. :) i voted for pia cayetano i have to admit(she's also cute by the way) but i didn't vote for jamby madrigal. What have they both done while they were in office. Jamby making the news for protecting a tree and pia cayetano for entering all those athletic races and stuff. I have to admit they both haven't done enough and i could say that more deserving people deserve to be there. Let your vote be counted. :) good luck on all you invesments. :) God bless. :)<br />p.s. For any comments, questions and suggestions please email me at compounder888@gmail.com<br />and a joke for all of you! What disease is the market suffering right now??? answer: beary-beary. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com2tag:blogger.com,1999:blog-33146020.post-4442688014527835642008-03-15T00:26:00.001-07:002008-12-11T02:06:35.160-08:00$1,000 it is!!!<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGVMGfzUGp68HwqIZsAPr9AbvXBaYrlzMBIeTu-bROpDCgNedmxeIwyOPSJ4rJ1lSKcGOzAJAYIP7M0FArCC3dhdRSIKJmcVi6-1fO79Pxxn3Y7D2ANTR85wr1I8L9QAkSAzR1/s1600-h/mar08+166.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGVMGfzUGp68HwqIZsAPr9AbvXBaYrlzMBIeTu-bROpDCgNedmxeIwyOPSJ4rJ1lSKcGOzAJAYIP7M0FArCC3dhdRSIKJmcVi6-1fO79Pxxn3Y7D2ANTR85wr1I8L9QAkSAzR1/s200/mar08+166.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5177866719937962930" />warren edward buffett - the world's richest man</a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixSJnvM0D6hspQ1PK2wS1-WNQle61AZvWyE2-wbKZKaFh4HSFHPZtjfyhfPQzqDXK5qN13RXln8VcoPYChqFoEGjOdx2L_vjG-PSpHOQ7PwqL1VX8ELVbxoexOEK0FXwQiVzCh/s1600-h/mar08+222.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixSJnvM0D6hspQ1PK2wS1-WNQle61AZvWyE2-wbKZKaFh4HSFHPZtjfyhfPQzqDXK5qN13RXln8VcoPYChqFoEGjOdx2L_vjG-PSpHOQ7PwqL1VX8ELVbxoexOEK0FXwQiVzCh/s200/mar08+222.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5177866719937962946" />gold jewelry</a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipbRWFAWy-N6D8_NnBHLjfOIIFIb3mFEWRZqOIGn93aFqWAaK6_FWvR4n57K_csQzfQTQRtYFzcu76aHpmPVCf7dBXUkxZf_SCFHIBIPPZVo1cGDxhOoesQVsg4F0tLjLse9JP/s1600-h/silver12+edit.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipbRWFAWy-N6D8_NnBHLjfOIIFIb3mFEWRZqOIGn93aFqWAaK6_FWvR4n57K_csQzfQTQRtYFzcu76aHpmPVCf7dBXUkxZf_SCFHIBIPPZVo1cGDxhOoesQVsg4F0tLjLse9JP/s200/silver12+edit.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5177866724232930258" />silver jewelry<br /></a>gold has finally reached the promised land!!! it has finally breached the 4digit level. :) according to the charts the minimum upside of gold is $1,020 and who knows what will happen after that??? but looking at the long-term charts of gold like way back 70's and 80's the minimum upside that i could see from the charts is $1,250 and i know what's going through your mind that i might be crazy or something but hey im just telling you what i can see from the charts. :) hehehe i remember when i told my dad this the first time it was like almost 2years ago i was driving and he was in the front seat and he violently opposed! hehehe but now he's a believer. ;) because if you now look at it fundamentally it is now very much possible with the recession in the us and also being an election year you can't expect the next president to immediately make an impact in the economy because those things take time. :) so expect the same from the us in the next 2 to 3 years which would mean a stronger peso against the dollar and higher commodity prices. so the question right now is.... do you buy or do you sell??? the answer i believe that whichever way you go you just have to remember that there should always be a margin of safety in whatever course of action that you will take. :)<br /> i am now inclined to tell you a story about a friend. i decided to tell you their story as a lesson for all of us. let us remember the important principles of value investing margin of safety and preservation of capital. this friend and all of her siblings did'nt practice these important principles which in the end made them broke. it is really a sad story to tell but it is something we can all learn from. after the death of their mother the my friend and her siblings got a sizable inheritance and instead of investing the money into something that could give them good returns they threw it down all in the drain. the most important rule in investing is that you should never lose whatever money that it is that you or in short preservation of capital. :) and then margin of safety they also did'nt practice this because of putting up a business or working to earn a decent income to support themselves they instead decided to live the good life and spend their money and spend it until they got broke. when they got the inheritance their relatives advised them not to spend and take good care of their money but all of these fell into deaf ears. if theu listened to the wisdom of their elders this tragedy could've been avoided. the sad part of it all is that the elders that they didnt listen too are now the people they are running to for help. i really dont know how i could help my friend but if i do help her she should at least have the will to help herself. let us remember that life is not easy and it is those challenges that we have in life that make life more colorful and give us character. lets go and fight the fight. :) good luck to everyone looking for bargains in the market because there are a lot. God bless.<br />p.s. for any comments, suggestions or questions you can email me at compounder888@gmail.com<br />a friend texted me and asked if metrobank is having a bank run. i told him of course not because if the biggest bank and one of the most stable banks in the country does have a bank run it would surely mean the end of our country and everybody in it.<br />i would like to end this article on the lighter side. what is the difference between a penis and life??? answer: life is always hard!!! hahahaha<br />good luck manny pacquiao! go out there and make us proud. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0tag:blogger.com,1999:blog-33146020.post-7565288956865961392008-03-07T23:49:00.000-08:002008-12-11T02:06:35.451-08:00"the three most important words in value investing are: margin of safety"<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYGRXEMRZ4WEXQlw0pSxyFPpCfSifCVwFsV1cq4coo14HrA79zzKLm1jfkPuG4RIX0rEetY9MaRx-yxhTQvysdKkvCqucom3j_Gx59mVqH5gs6sVN-i-7tcCWw_xMLwAfRYTb6/s1600-h/buffett.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYGRXEMRZ4WEXQlw0pSxyFPpCfSifCVwFsV1cq4coo14HrA79zzKLm1jfkPuG4RIX0rEetY9MaRx-yxhTQvysdKkvCqucom3j_Gx59mVqH5gs6sVN-i-7tcCWw_xMLwAfRYTb6/s200/buffett.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5179369670728754146" />warren edward buffett - has finally reached the number one spot in the forbes richest list. </a>this is a little tribute to the world's greatest value investor. :) he has basically changed my views on investing and business which my dad should really be thankful for. :) i could say that he has changed my life. :) he might have a lot of detractors and non-believers but i could only say this "you cannot argue with success!" congratulations for making it to the top of the forbes list mr. buffett! long live value investing. :)chief stockshttp://www.blogger.com/profile/00526993619542769012noreply@blogger.com0