Risk Management
Posted by Finance Dude On September 26, 2010

Why of all the topics of investing should we tackle first this thing called Risk Management? Well, to start I’d like to quote two men. The first from one of the top three richest man and another is one who was successful during the recent economic turmoil.
Rule Number 1: “Never lose money. Rule Number 2: “Never forget rule Number 1.” –Warren Buffett
This is interesting. One of the richest investors does not look at how much he will make at first. But he wants to make sure of not losing first.
Another famous billionaire investor, who had made a good amount of money for his clients when most was losing money during the crisis, has this to say:
“I really picked up my investment philosophy from Marty and his father, Joseph Gruss. He had two sayings that guided me going forward.
The first was: Watch the downside, the upside will take care of itself. That’s been a very important guiding philosophy for me. Our goal is to preserve principal, not to lose money.†—John Paulson
In investing before anything else, always look at the risks and downside first. Focus on
Return OF capital first before even asking for return on capital. Ask the following questions:
- What are the risks?
- How likely are the risks happening?
- How can you protect yourself from the risks?
You can even classify risks in different classes.
Put another way, before flying high; make sure your landing gears works!
You may disagree and say, isn’t it that low risk means low return and high risk, high return? Well generally that is what common sense taught in business schools. But low risks and high returns scenarios do happen from time to time. Examples abound as during the recent recession, stock prices fell down when the value of the business didn’t. Some companies sold for less than the net cash on their balance sheet. What does this mean? Let’s say you’re friend has a restaurant called Good Food Restaurant with the following assets and liabilities:
Cash P100,000
Receivables 10,000
Kitchen Utensils 50,000
Furniture 40,000
Total Assets P200,000
Liabilities 10,000
Net Worth P190,000
He is selling the business (including the cash) for P60, 000. Would you buy it?
Again let’s see our rule number one. Will we lose money here? Maybe there’s a catch. So we ask around, we look at the financial statements, we check out for any lawsuits or problems. We don’t see any. I think we just had ourselves a good deal. You pay P60, 000 and you get at least P90, 000 in cash. (P100,000 of cash less the liabilities of P10,000). We will make at least P30,000. You might tell me this doesn’t really happen. An individual might not do it. But it happened when supply outnumbered demand in the recent economic turmoil. In following series, I’ll show you a real example of something similar.
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About the contributor:
Finance Dude
The writer is a financial planner, investor, speaker and a self confessed cheapaholic. (Cheapaholic- a term he invented to mean someone who is addicted to being very cheap). Send in your questions. He will try to answer any questions you might have, preferably on finance and money matters. Although he does not object to questions on love and relationships, he never had one and due to his extreme cheapness, will probably never have one (In case you’ll send it mistakenly, he promised to forward it to HeaRty).
Disclaimer: Advice posted in this portion is merely opinions and views of the writer. It does not constitute formal advice. The writer will not be responsible for any of your gains or losses. If symptoms persist, contact your trusted financial planner.
Globe Brings iPhone 4 to the Philippines
Posted by Rochelle Sy Chua On September 26, 2010

Last September 24, Globe Telecom announced that it will launch the iPhone 4 in the Philippines with a range of Globe plans designed for iPhone customers. Wow! I’m sure a lot of Filipinos out there have already registered online at the Globe website to get their own units at the exclusive launch today at Makati Shangri-La & New World Hotels.
My best friend Christina is actually one of them, she will be claiming her 1st iPhone (finally!) later at 3PM! I’ll surely be able to play with it when we see each other next week hehehe 😛
Globe Telecom executives’ has this to say about the new iPhone 4:
- Globe President & CEO Ernest Cu – “Customers will enjoy a superior mobile experience with iPhone 4 on Globe’s high-quality network and wide array of fully customizable plans.“
- Globe Consumer Business Head Peter Bithos – “We are very excited to deliver iPhone 4 to Globe customers. Our customers want the best in innovation and personalization and we are delivering that with the revolutionary iPhone 4.â€
What’s with iPhone 4 that everyone has been so excited about? Everyone seems to want to have one just like when the iPad came out last May 2010.

The iPhone 4 has amazing features that we just can’t pass up. Facetime, which finally grants us our long request for Apple to include video calling on our phones. Way cool, right? Wait, there’s more! iPhone 4 features a 5 megapixel camera w/ LED flash & HD video recording. Now, for nonprofessional photographers, you only need your iPhone and you get a phone, camera & video camera, what else do you need? 😀
The newest version of iPhone also has a new design of glass & stainless steel and included in the new design is the fact that it is now the thinnest smartphone in the world. For current iPhone users like me, we are well-aware that iPhone 4 comes with iOS4 which includes over a 100 features. You can check my previous post about my top 5 things about iOS4, I’ve written there the things that I really love with the newest version of the world’s most advanced mobile platform 😉
For more information about the iPhone 4, you can go visit Apple’s product page. Meanwhile, you can go to Globe’s website for full pricing & available plans for iPhone 4 in the Philippines. Apple has truly been a trailblazer when it comes to product launches, and with its new iPhone 4, they are continuing to provide the market what it wants. What a great company and what a great phone!

Personal Branding Seminar
Posted by Randell Tiongson On September 21, 2010
When I hit 40, I knew that there were many things that I would like to do. I love my corporate job, especially the people I work it but somehow there was this longing to do something else. Some people call it “mid-life crisis” and that may be true to some degree. You see, I have always wanted to bring the advocacy of personal finance outside the corporate realm by being a public speaker. For many years, I have been a fan of people like Francis Kong, Butch Jimenez and so many of the great speakers of the country. I was also a fan of writers like Cito Beltran and other columnists. 3 years ago, never in my wild imagination will I think of what I am doing now.
Two decades the financial services industry made me build up my knowledge and competence in the finance arena and God blessed me with the ability to communicate both in the area of speaking and writing. But how will people know who I am and what I can do? How do I get people to notice me? In other words, how do I get a break?
The answer? Personal Branding. With the help of my good friend Carlo Ople, I was able to launch a dream career that I am enjoying now. While I am still very far from the likes of my role models, I am thankful that I am getting there. Thanks to many mentors, Personal Branding and the Lord Almighty.
People have often asked me how Personal Branding helped me launch my new career so I asked my friend Carlo if we can do a seminar on the whats and hows of personal branding. Join us this Saturday at the Upper Level of Promenade at 1:30.

Kohikan at the Diamond
Posted by Rochelle Sy Chua On September 20, 2010

I used to go to Kohikan a lot when it still had a branch in Promenade, Greenhills. It’s still a mystery to me why it closed down considering it was very successful, there was no hint at all that one day it’d close down.
Luckily, my mom knew that they also have a branch that is located at the lobby of Diamond Hotel. She suggested that we go to Kohikan for dinner. That day, I was driving from Tagaytay as we went to Sonya’s Garden for lunch. It was a looong drive and I was too tired, Diamond Hotel was on the way home.
Kohikan is known to have coffee that is charcoal-roasted. It’s a given that we would order coffee, why would you not order the specialty of a restaurant right?

Unfortunately, most of the menu items from their promenade branch weren’t available. I wonder why. Maybe, since hotel guests usually just want coffee or dessert, it probably doesn’t make sense for them to offer a lot of items.
Anyhow, here’s what we had:
- Winner (Php 175)

This is Sumibi Coffee w/ whipped cream. It’s pretty funny that they call it winner, but maybe it’s because Sumibi coffee is the popular coffee at Kohikan. By the way, the whipped cream is so rich, you might want to mix it first with the coffee before drinking. You would enjoy it better that way 🙂
- Iced Sumibi (Php 180)

Iced Sumibi as the name implies is the iced version of the Sumibi coffee. I love its presentation plus the cute lil container for the cream & syrup. Tasted good too! Just as we expected from a Japanese coffee.
- Matcha (Php 260)

Green Tea Shake topped with a whipped cream. My mom’s friends always orders this, I keep forgetting to try it. I can’t seem to break my habit of always ordering the Iced Sumibi from Kohikan hahaha! Maybe next time 😛
- Coffee Jelly (Php 250)

Doesn’t look like Coffee Jelly at all, does it? That’s because it’s a shake! They blended all the ingredients & topped it w/ vanilla ice cream. My mom doesn’t like vanilla ice cream so she requested for it to be separated from the drink. It was a delicious drink according to my mom, when I get the chance to go back to Kohikan, I’ll try this first then the Matcha..
- Sauteed Shrimps al Ajillo (Php 450)

I was hungry but my 2 companions weren’t. I ended up being the only one who ordered a full meal. I tried the shrimps w/ garlic rice. Shrimp has always been my favorite food item, can’t get enough of it. This version was spicy but definitely tasty! This turned out to be a really wonderful dish because of balance of flavors that was incorporated into the tomato-based sauce. The shrimp wasn’t overcooked at all, and most of all, the garlic rice really was a great companion to the dish itself.
- Ensaymada

I noticed at the counter a lot ensaymada on display. Looking around the place, I also noticed that everyone ordered it. Christina then ordered it just to give it a try. I took a bite and I loved it! Ensaymada is basically a bread coated with butter, sugar and cheese but the thing that differentiated it from other ensaymadas is that there’s ube inside Kohikan’s version, yum! It was served hot too as they microwave it first before putting it on our table.
The price of their menu items are a bit too steep IMHO. I felt it was really too much considering the taste and ambiance of the coffee place. A factor could be because it’s inside Diamond hotel, I was hoping they could lower the price a bit or else, I don’t think I would want to go back often.
Anyhow, I still enjoyed our dinner since I’m with my mom & my best friend 🙂 I was also too tired from driving so I was able to relax a bit.

Service was okay, nothing special, there was an instance where my mom had to ask for water 3 times from 2 different servers before it was served to us. It wasn’t consistent coz there was a server who was very accommodating. Oh well, let’s see if there’s a chance for me to go back. And probably the only reason is definitely because of the drinks, really can’t go wrong if you need a place to just sit and relax and enjoy the company that you’re with 🙂
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Kohikan at the Diamond
G/F Diamond Hotel, Roxas Blvd corner Dr. J. Quintos St., Manila
(02)528-3000

Why Do People Run the Marathon?
Posted by Bel Emmans Padlan On September 20, 2010

Why do people run the marathon? I mean really? If the legends are true, didn’t the first marathon runner died after completing a run to ancient Athens? And yet, more and more people aspire to and actually run this race every year. It couldn’t be madness, otherwise there are too much running madmen (or women) in the country already, right?
One can’t help but be curious. Pretty soon you become too curious enough to give it a try yourself. I guess that’s what happened to me this year.
The Milo marathon is on its 26th year already. Though it has been around for that long, for me it has been like going to the moon. I know it’s possible and can be done, but it’s only for the elites and for sure will not happen to me this lifetime. Recently though, long distance running as a sport has experienced a boom and in our office a very active runners’ wellness group has been organized.
Last year, quite a number of my officemates were able to finish the 42 after 6 months of scheduled training. This year, they plan another batch of runners to run and train. As early as February, I declared for my self that I will finish the marathon this year. That’s how it started for me… over lunch while my office friends were discussing about another organized marathon training. No dates were discussed, no specific marathon yet to join.
March came and we knew the Milo marathon will be in July. The more experienced runners in the office were advising me not to run for July, but instead wait for another marathon (QCIM) in December. That would give me more time to train since the training plan is 6-month long. Impatient, stubborn and lazy (three of my best qualities), I decided to go ahead with the July schedule. To wait for December means I need to train for 8 months, besides, I’m fit enough to the marathon anyway… or so I thought.
April came and I’ve only been running short distances on erratic schedule. Far from the prescribed training plan where I should run regularly and with increasing distance; confident that, anyway, there’s still May and June to get serious. Fortunately, I did catch up on my training plan thanks to insistent reminders and run invitations from my training buddy. I did my first long run (15km+) in April and completed my first 32km in June 5.
At 25km, your body will experienced fatigue and it will require much mental discipline to finish upto 32km. That is why they say that once you’ve done a 32km run, you’re ready for the marathon because from 32km to 42km run will just be pure will power.
Then July 4 came and it is the Milo Marathon NCR elimination race for the National Finals in December. While the elites and veterans race to qualify for the finals, beginners like me only wish to complete the marathon alive and perhaps finish in 6 hours to get a medal at the finish line.
Good thing is that there were a number of my friends racing on that day for 21km and 42km races. My anxiety and fear of not finishing mellowed down a bit as I met up and chatted with my friends at the starting line. We talked about running together and following this person who paces well (which was only true for the first 15km, after that, it was each person running his own pace).

The race route is 5 loops around CCP-Aseana-Macapagal Ave-Sofitel. Some say the route is boring as it goes around the same area 5 times. For me it was a boon. It was easier to psych myself to run some more everytime I complete a loop.
The first two loops (about 18-20km) was easy enough and quite uneventful. It was just about keeping the pace which is at 8.5kph, enough to beat the 6-hour deadline. My pace group started to break up at the third loop, when each of us started to rest at different rates.
Pretty soon, I was running by myself alone. By this time, you’d start to look for ways to motivate yourself to run some more.
You’d start to look for attractive females to tail-run with. It can keep you motivated to run another 5km straight. Unfortunately, there’s not much of them in the race and they would either be the fit and sexy ones (already ahead of me in the race and hard to keep pace with), the average-paced ones but running with their boyfriends or the not-so-fit ones tailing behind.
And then you’ll meet some friendly guy whom you can chat a bit with how difficult it is to train for the marathon. Then you’ll also meet a friendlier-guy-in-a-weird-way whom you’ll chat a bit but amazingly you’ll find enough energy left in you to burst into a sprint. There’s also your sporty lola runners that, though they don’t intend to, shouts silent insults to your youth and manhood just by being ahead of you in the pack. You’ll again find the motivation to run a bit faster to overtake them.
By the Aliw theater are a group of running-enthusiasts who voluntarily stationed themselves there to cheer everyone who passes by and completes another loop. And just at the turn to Buendia, you’ll meet the P&G volunteers, office friends who are always ready with their Gatorades, menthol sprays and compliments on how great you’ve done running thus far. I was equally thankful for the cheers as well as the menthol sprays because by the 4th loop, my leg muscles became tight and slightly painful due to fatigue. The spray works miraculously to ease the pain for another half-a-loop.

By the 4th loop, it was 40% run and 60% walk for me. But at the 5th loop, it was all walk with a few sprints. It was not much because of my tired feet but because of my acidic stomach. I cannot run 50meters without having a hiccup-attack. Throughout the race I’ve been conscious not to drink too much water and Gatorade to avoid it, but still it happened. Even drinking antacid did not help. I was confident enough to walk as I was in my last loop and with a little over an hour left until the 6th hour deadline.
In the last leg to the finish line, I was just practically walking the race. The sun was scorching that later after the race I would hear the news that someone died because of dehydration. For the last 5km, I tried my best to run for the finish mainly because I soon realized that I miscalculated my time. I thought the finish line is at CCP, but it was in Luneta (about 3km away). I was 3km away from the finish line 40min before the cutoff time, which would have been doable if not for that fact that I have been running for more than 5 hours already for 39km.
I finished with the run time of 6:05. I technically did not achieve the sub-6 (below 6 hours) requirement but fortunately, Milo had some surplus of medals and they were still giving the medals even beyond the 6th hour.

Will I do it again? Probably not. Will I recommend it to friends? Yes, I would. I believe it does build character, the training and the race itself. As for me, I really appreciated the support given by friends for my race preparation and during the race itself, so much so that I vowed to support the runners for the QCIM marathon. My turn to cheer and somebody else’s turn to run 🙂