Re: Investing in Mutual Funds

Oct 19, 2007

First, I envy you for your age. Having to start investing at such a young age will take you to great distance. Ironically, it's only now, (when I reached this age), that I realized what the adage "Time is gold" really means. Akala sinasabi lang yun ng mga walang maisip na motto (lol). You are lucky to be in the right company at this early point of your life.

Now, I'm not a professional investor (yet) nor a successful one (yet). But I know some things about it (at least theoretically) that may help you in your dilemma. I always compare investing to a card game. Part luck, part diskarte. But again, you are fortunate as you have one of the aces of the game-which is TIME.

You are young, and because of that you can attempt to make risks. Because even if you lose money-which is unavoidable (but as much as possible must be prevented)-you can still earn it through your job, other ventures or still through investments-because any investment, in time, will profit.

Again we know that in investment, no pain no gain, and that the riskier the investment, the higher the return. Now, stocks, stock mutual funds (aka, equities), balanced fund (mixed equitiy and bond), bond and money market differ in risk and yield, the first one carrying the greatest risk and profit, and the last one, much like putting your money into time deposit.

For a young investor like you, financial growth is the name of the game. Because again, you can gamble to be aggressive, most financial gurus would agree that stocks and stock mutual fund (aka equity) are the ones more appropriate. However between buying individual stocks or stock mutual fund, the latter is better as playing stocks requires experience. Stock mutual fund, on the other hand, is handled by a fund manager, who pools money from different individuals , then use that into buying different stocks. In effect, this is much safer because it is handled by an experienced person.

Compared to bonds and money market, stock mutual fund will give you a higher yield as this is stock investment. In fact, in terms of revenue and capital preservation, it can even be better than buying individual stocks. Because in a stock mutual fund, there is already diversification (the money is into a variety of stock products that give different yields)-one which you may not be able to do with just your money to invest. The risk of losing money is lesser as lost of one stock may be offset by the gain of another.

So, take your pick.

Gaano Kaimportant ang Diploma?

Oct 12, 2007

As cliché as it may sound, it is as true as it can get. KNOWLEDGE IS POWER. I don’t think anybody will argue on that. In our ancestors effort to prevent chaos, they tried organizing everything, from governance to the body of knowledge. Thus they came up with education. And the diploma is the proof that somebody gets it formally.

Now, let’s analyze the question, “Gaano kaimportante ang diploma?” If this is going to be taken figuratively (that is what the diploma represents), then inarguably IT IS IMPORTANT. Again, it’s because education is simply a system of knowledge. Although it’s perseverance and hardwork that are more important in achieving success, education will make it easier and possible the impossible. In fact, it is the latter that enabled us to make it this far. (Otherwise, baka nasa kweba pa rin tayo).hihi

For those who were able to make it without a diploma, let us not forget the component of luck. Besides they are only a few compared to those who succeeded because of education.

I, too came to think that getting a diploma doesn’t guarantee success. Sabi ko pa nga, iyan ang ituturo ko sa anak ko. But I realized soon (thank god!), that the role of education can’t be downplayed, something that we can’t do without, something VERY NECESSARY. It’s just that some people (including me) blames it on education in general the mistake they make in choosing the wrong carreer. Watchuthink?

Taken literally, you need that piece of paper as proof. Again to prevent chaos.I remember asking my mother why I have to go to school when I can study on my own at home. I remember her telling, “Kasi sa school mo lang makukuha ang diploma, at yun ang pruweba na you have learned what you are supposed to know and know how much you are supposed to learn”:D