If It's Too Good to be True, Don't Take That Investment

One of the many mistakes that anybody can make (including myself) is to get into an investment scam. I remembered having been conned out of money and never recovered it. It's quite a charge to your painful experience, right? Then I remembered how during my MBA days--there were also other pyramid scams and some of the victims were MBA students. A sad fact, really, that some are educated but never learned. Elon Musk even says one can get a degree and still be a fool. The story of The Scholars and the Lion had three foolish scholars who decided to resurrect a dead lion--in spite of knowing the danger of doing so. This happens also with investment scams. Some of those who get scammed do have a degree or going to graduate school. I got scammed during my stay in graduate school. I even deserved to be ridiculed and asked, "Is that what they teach you in graduate school?" Even more, I remembered getting Cash2Go which isn't exactly a feasible thing for some even if it's not a scam. Some people just want to pretend to know they know a lot out of insecurity, right?

I could remember a couple of scams but not all. There's this term called a Ponzi Scheme or a Pyramid Scheme. Somebody gets high returns but the rest don't. The scam I got myself into had someone initially pay me back then owed me higher then never returned. It's really like the too good to be true, right? Yet, many people fall for it because of financial illiteracy. I must wonder are schools really serious about teaching them? Have schools become a place where people learn then they throw everything out of the window when they graduate? I had that attitude and I find myself digging through some old notes. Just think what if an engineer decided to throw away all the knowledge about calculus, geometry, and trigonometry after he or she graduated? I couldn't imagine the chaos when these mathematical subjects get ignored by an engineer after he or she graduated or after he or she took the licensure exam. Sadly, it seems school has become like that.

There's always the promise of high returns in a short amount of time. Do the math and it doesn't. It made me think of how some people deposited their money in a bank and later the bank crashed. I remembered being part of it when I had to get a Philippine Depositor's Insurance Corporation (PDIC) check when the bank closed down. The promise was to double's one money in such a short amount of time. There were also other investments promising a free iPhone. An iPhone, by the way, is a luxury phone and why would any good businessman want to give it away for free? It's just inconceivable. Yet, people fell for the scam and lost all that money.

Recently, I think about text messages I keep getting during the pandemic. Before, I got messages that said I won a certain amount of money. However, to do so, I had to go to a certain shady location. It was too good to be true. Fortunately, I was able to exercise prudence after my painful experience of losing money in a scam. They required me to forward important details. It could be hackers for all you know. There are also text messages that offer ridiculously high salaries per day such as PHP 8,000.00 per day. Would any good businessman pay that high per day? It would definitely render anyone bankrupt one way or another. Fortunately, newer phones can have you report these text messages as scams. If you get these messages--don't reply to them and block those numbers! I think they use burner phones to avoid getting detected by the authorities.

Any real investment takes time. I think about how I entered some of my money to Axelerator Chinese Tycoon since I don't have the expertise to do stocks myself. Stock market can be a very risky investment because of the volatility--that's why there's professional management. I remembered in my MBA days when a financial forum actually had it said, "If you invest in stocks--make sure it's with money to spare." I think that would be very wise advice. I think managed funds would be better for some while directly managing stocks is better for the others. Then another warning is that any company that offers returns that are too good to be true need to be shunned.

Reading the biography of rags to riches can help understand how true financial power is no walk in the park. The late John Gokongwei and the late Henry Sy didn't build their shopping mall empires that fast. Tony Tancaktiong of Jollibee fame didn't create Jollibee into a big empire in a few months. Real investments will take time and effort. It's pretty much like how a person living from paycheck to paycheck starts to let go of the unnecessary, focus on the needs, and have a bank account. It would be learning to manage one's money. It would also mean learning to value time and energy as part of learning to manage money. Money doesn't grow on trees so don't expect money to return that fast either. That's what businessmen who came from poverty put into heart before they got rich.

This would mean also doing thorough investigations. It would also mean checking out the claims. Compare the claim of a legitimate bank with the investments vs. a company that promises high returns in a short time. Can a real legitimate bank afford to pay you interest that much? The answer is no meaning that anybody who promises to do so is just fooling you. Doing time to do research on these matters is pretty helpful in learning how to invest money.

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value

The Problem with the Philippine Education System is That It Inadvertently Tends to Make One Stroke One's Ego

What happens is that the traditional Philippine education system focuses too much on monuments of fame rather than learning milestones . It reminds me of the incident where Rep. Raoul Abellar Manuel stressed out he was a cum laude, and that he's not stupid. I feel this is a microcosm of a much bigger problem that happens with the education system. I'm not going to deny that going to the University of the Philippines and graduating summa cum laude isn't an easy feat. However, I wrote an article on what's the use of being a summa cum laude when one opposes badly needed reforms . It's because whether we want to admit it or not, schools focus too much on the ability to memorize without also focusing on the ability to understand . Memory is also the least reliable tool. It would be time to continuously attack the problems of the education system. I felt shamed back then because students were often told, "Your grades will determine your future!" In college, I

Is Anybody Willing to Prove Filipino First Policy Has a Place in the Rising Asian Century for a Million Pesos, Tax Free?

Yesterday was the birthday of former president Carlos P. Garcia, who died in 1971. Garcia is often associated with the Filipino First Policy. Back in the 1990s, I remember how Filipino First Policy was taught in values education classes --never mind the glaring contradictions. The contradictions are that imported equipment was used, or that we can literally never escape the use of imported equipment. I wrote an article discussing why Garcia's Filipino First Policy has no place in the rising Asian Century . I haven't done academic work right now, having been disgruntled by the Filipino education system. Sadly, not even graduate school taught me the basics of stock market investment (such as equity funds) or how Cash 2 Go works. That's why some people say, "It's just a degree!" I often said, "Well your doctor went to college, your lawyer went to college, etc." However, it looks like a college degree may not be for everyone, under K+12! Some people are

The Philippines' Decades-Long OUTDATED Education System

As a child born in the 1980s, I would say I was born during the Marcos Years and I was about a year old when the EDSA Revolution happened. That means I've passed through a lot of stuff rendered obsolete today such as dial-up Internet (which my parents refused to get due to how it interrupted the phone lines unlike the Digital Subscriber Line), cassette players, VHS players, and may I mention the education system . It might be fun to think of times when people of my age group watched The Flintstones or The Flintstone Kids (picture above) during the 1990s imagining school during the stone age. However, these photos today may make me cringe to think about how I grew up in an outdated education system. My recollection of the outdated education system in my eyes from the 1990s before K+12 got implemented My current readings through the book From Third World to First by the late Lee Kuan Yew made me want to write this. The recent chapters I'm in are "Deng Xiaoping's China&qu

Pinoy Pride Economics' Filipino vs. Foreigner False Dichotomy

Two years ago, I wrote about the socio-economic cost of Pinoy Pride Economics . It might be better to call it Pinoy Fried Economics because such mentalities have caused the Philippines to fail. Pinoy Pride Economics has fried up any potential for the Philippines to improve. As it's August, the month is commonly called Buwan Ng Wika (month of the language), the celebrations tend to focus more on the celebration of Filipino Culture instead of Tagalog. I remember Buwan Ng Wika programs tend to showcase how cultural exchange evolved the Filipino Culture--such as showing the Chinese traders and Americans in their interaction with Filipinos. On this very first day of August, I'll discuss the problem of the Filipino vs. Foreigner dichotomy. Last I re-studied Filipino History, I never saw it as once free from foreign influence. The Chinese traded with the Philippines--way before the Chinese Communist of China (CCP) caused trouble because of their country's terrible leadership .

The Insanity of Quoting the Late Lee Kuan Yew About the Marcoses While Ignorning the Rest of His Helpful Advice for the Philippines

It may not be Singapore day yet, it's still July and that event is in August. However, some people are now raising placards all over again because the 17th Philippine president is none other than Ferdinand R. Marcos Jr. Som people tend to quote from the book From Third World to First . I did buy the book last year and started reading it slowly. I did get a slow read when it came to the late Lee Kuan Yew meeting the late Ferdinand E. Marcos Sr. The description of Marcos was anything but flattering. I read the book and LKY mentioned that he was not confident that Marcos Sr. could pay back the money. The Philippines wasn't in the "golden years" as some would like to make it out. Yet, it seems that the only time LKY is ever mentioned is whenenver it's about the Marcoses and tends to be ignored when it's about how the Philippines can improve. Parliamentary system is often viewed in the wrong way Whenever Singapore is mentioned, I tend to talk about the parliamenta

The Economic Ignorance of Saying Landlords and Stock Traders Contribute Nothing to Society

Finding anti-capitalist (or better said, anti-business) wokes on Facebook (of all places) is just plain funny. Maybe, the term socialist isn't so negative since the late Lee Kuan Yew considered himself a socialist, the late Deng Xiaoping is the author of Socialism with Chinese Characteristics, and Vietnam still considers itself as a socialist country. The picture above this paragraph says that landlords and stock traders allegedly "contribute absolutely nothing to society". I feel compelled to write a bit of a post since, as a business graduate, I do feel insulted. Then again even if I didn't get an MBA--I do still feel insulted myself! How good landlords contribute to society Landlords are often said to be a blight. Some say that it's the "easiest job in the world". However, managing real estate (especially rentals ) isn't as easy as some think. I wrote an essay as to why being a landowner isn't as easy as some people think . I would like to d

Were Econ Cha-Cha Opponents Forced to Buy Luxury Products When They Have the FREEDOM to Buy More Affordable Products?

Do econ cha-cha opponents have no choice because FDIs "unfairly" own the means of production (read here )? There's always the tendency to say that they participate in capitalism because they have "no choice" but to participate in it to survive. The screenshot above is of Rosario Guzman of the IBON Foundation . They say that the business owners "unfairly" own the means of production (read here ). The photo above makes me laugh because why in the world are they using a MacPro ? I ask, "If you hate capitalism, why use Apple?" They have their usual rhetoric that it's because the workers should own the means of production as if workers were the ones who bought the equipment. It's as if the workers become the most liable for bad business decisions. One wrong check mark and the company may go south. Another question to fire is, "Did society force you to buy Apple products which you know for well, is rather expensive?" This may mak

It's Not Enough to Have a Good Teacher, You Must Have a System That Encourages Teachers To Do BETTER

It's been some time since Miriam Defensor-Santiago (or MDS for short) died in 2016. It's hard to forget the time she grilled former PNP chief Alan LM Purisima over the demise of SAF-44. While listening to her sermon, I remember the teacher I fondly called "My MDS style teacher!" I still owe a debt of gratitude to her for helping me become better. Yes, she was feisty, and not so many parents liked her temper. However, she was better than that elementary mathematics teacher. I may have not done well in high school but I say she was a good teacher. I failed to think outside the box. She always made us think outside the box. It's easy to say, "Well, we just need good teachers and there's no problem with the system." However, like MDS, I'd react to that and say, "Really?" That was MDS' reaction when Purisima tried to play with words. Purisima was infamous for saying that he didn't give an order and only advice. Even funnier was when

Where's One's Priorities in Complaining About Rising Prices?!

I found this meme on Facebook. For the sake of non-Tagalog speakers, it means: For each one that costs PHP 75.00 no complaints. PHP 50.00 per kilo, always complaining! Last year, I wrote about what's dubbed as pera-normal activities . I would like to write about another cause behind these pera-normal activities. People tend to complain that the prices of goods and services have risen. However, they have no complaints about the rising prices of things they don't need. The meme on Facebook shows two things--the gin and the kilo of rice. I was skeptical about President Ferdinand "Bongbong" R. Marcos Jr.'s promise of PHP 20.00 per kilo of rice. The promise is ridiculous but he won anyway . We can thank the presidential system and the 1987 Constitution of the Philippines for that! Now, critics of Bongbong are demanding PHP 20.00 per kilo of rice. Shouldn't the critics show why it's impossible given the current circumstances? This editorial cartoon from The Mani

Shaun T. Dy's Business & Economics Perspective Blog

Search This Blog