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.

Get Stuck with EDSA, End Up Like Nokia

Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples. But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

#SahodItaasPresyoIbaba Economics' Bad Accounting

I would like to apologize in advance to my readers. The picture I'm presenting is in Tagalog, and not all my readers speak Tagalog. I would translate the picture's text into English for convenience. It says: "Ano ang bumubuo sa mga presyo?" means "What comprises the price?" "Gastos ng materyales" means materials expense "Gastos sa kasangkapan" means depreciation expense ""Gastos sa pasahod" means salary expense "Kapitalista" means capitalist Renta is well, rent "Kayang pababain ang presyo" means "Prices can be lowered". It says that capitalists (industrialists, landlords, bankers) and elitist governments are part in the gross profit. Get rid of excise taxes (either permanently or temporarily) for the prices of goods and services. In the times of crisis, in the burden of sacrifices, we need to be watchful for capacity. Whatever savings for times of difficulty by the workers and countrymen, the...

Past Chinese School Education in the Philippines was Based on "Sǐ Jì Yìng Bèi"

Chinoys of my age (and older) may remember these textbooks. I called them as the "symbol of trauma". It was memorizing something without understanding it . One would just memorize (without understanding it) because it was typical. Not being able to memorize what was assigned? Get a bad grade? One can expect physical punishment like hitting the hand with a ruler or chili in the mouth. Chinese language teachers are stereotypically strict . The language textbooks (above) are what were used during the 1990s to the early 2000s. As I wrote it, the Sinjiang textbooks aren't effective in teaching Mandarin , in a world where Mandarin has over a billion speakers! There's a Chinese proverb that says, "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death". That's exactly what those textbooks are. Memorize to the point of death! Okay, it may sound exaggerated. However, that's how Chinese language teachers in the Philippines were made to teach the ...

Migrante International's Really Bad Economic Literacy

March 17 (which is tomorrow) seems to be an unofficial holiday for some people, right? I'm sickened that the late Flor Contemplacion has been treated like she's some national heroine (and thankfully, tomorrow isn't a holiday) even after Singapore had proven her guilt. A movie was made by Joel Lamangan called The Flor Contemplacion Story . The call for Migrante (Migrant) International has been to remember Flor even after several years. What's not too surprising was to learn that Flor's sons were all arrested for drug-related charges. Even her eldest son died while in prison. You have Migrante International wanting to end the labor export policy. However, a post by Migrante really shows how this group fails basic economics. I will not post the whole press statement but one part that made my eyes roll. >> Further opening the country’s economy to foreign ownership and control will worsen the exploitation of our people and the environment without creating a susta...

"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...

Has Passing Down Hatred for Singapore (Because of Flor Contemplacion) Economically Helped the Philippines?

PEH.ph It was on March 17, 1995, when Flor Contemplacion was executed in Singapore. I've noticed that I've been addressing her as the late many times, even if the late is a statement that may be ony appropriate if the person has been recently deceased within 10 years. It's about to become 30 years since Flor was hanged in Singapore. However, generational hatred would've been passed down from 1995 up to 2025. Some people are still tagging #JusticeFor Flor. These traits may be passed down from the Batang 1990s to their children in this generation. It may also be passed down from parent to child, even if the child was born in the 2000s to 2010s. Somebody born in 2000s and beyond might even say, "Papa and mama told me about Flor Contemplacion! That's why I hate Singapore!" Talk about a child born in 2004 who's probably angry with Singapore, because his parents kept telling him about how Flor was supposedly "unjustly treated" over there. Some tim...

Getting Stingy at the Cost of Fire Safety?

March is fire prevention month, right? If there are people who are too extravagant then I'd like to talk again about stingy people (read the article here ). I've tried growing up with the stingy vs. extravagant extremes. Some people become stingy even with the necessities. It's one thing to deny a child a children's party since it's a want . It's another thing to deny a child stuff they need all in the name of saving money . Even worse, some people may be more than stingy enough to ignore fire safety. A stingy person just wants to save. It's almost like the story of the Miser and His Gold or The Rich Miser . I really find these stories entertaining at the same time, irritating. The first story has the miser who hid his gold under the ground. Some people today are too distrustful of banks and investments. The second story has a rich man who even dresses in rags, denies his son's shoes, had his wife cook some cake only for him, and was so greedy he had it ...

Trying to Plan Out What to Do as a Bull Market Starts

I was laughing just thinking about ignorance about the bear and bull markets. Yes, we know about social media gossipers (seldom called a marites in Filipino) tend to spread gossip. I ran into several people panicking when the Philippine Stock Exchange Index (PSEi) was mostly red. Others would panic but Warren Edward Buffett recommends, "Be fearful when others are greedy. Be greedy when others are fearful." That's the best market timing. Some people do cost averaging because it's practically less risky in contrast to lump sum investing. Buffett recommends that non-technical people should periodically invest in a low-cost index fund over a period of ten years. Now, the Philippine Star has an article by Wilson Sy, where the first paragraph talks about the Philippines' entry towards the bull market : Most stock markets have undergone a dramatic shift to start the year, transitioning from a bear market to a bull market. Peak inflation, a slower pace of interest rate h...

My First Taste of Sichuan at Yang Hero IT Park

I was doing some random historical study. One of the many things I recalled from Asian history class was the Chinese Communist Party in Sichuan. It's an interesting piece of historical detail that Mao Zedong (and other Chinese communists) were avid lovers of spicy food . Yang Hero had its first branch in Gaisano Tabunok. It opened a branch in IT Park last May 25, 2023 . The menus had Chinese translations. The establishment has made me realize the importance of learning Mandarin . True, I could order their food without speaking Mandarin. However, I still feel that the increasing number of Chinese businesses left and right would mean, "You may need to learn some Mandarin now to connect with more people in the world." For a bit of background, here's what I gathered from Sun Star Cebu: Evanmarie Mendoza, social media specialist at Yang Hero, said: “The Chinese barbecue is also a must-try for foodies as it differs from the regular ones that we typically have here in the P...

Tealive's Aren Caramel (Kaong Sugar Caramel) Series

I usually tend to associate sugar with cane sugar. In this case, Tealive (read my review here ) uses a sugar known as gula aren. I did some research and found out that Gula Aren is made from the sap of the sugar palm tree. The fruit is also known as kaong in the Filipino language. Granted, the Filipino language also derives from the Malaysian and Indonesian languages--it may be derived from the Indonesian word kolang kaling . The Philippines may also be producing its own gula aren or palm sugar. Sugar palm or kaong is pretty much grown as a staple in Filipino cooking too. Here's a video from an Indonesian woman. Watching this, it's safe to assume that kaong farmers in the Philippines follow more or less the same routine. Maybe, some people may call it latik though latik is made from coconut milk and not coconut sap. Though, some Filipinos may still call palm sugar as latik. The video above also shows an Indonesian binignit with some kaong. I was shocked to learn kaong is also u...

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