Warren Buffett's Principles NOT Taught in Business School?

I'm a graduate of a business school. I felt ashamed (to a certain extent) that I wasn't accepted into the Bachelor of Science in Information Technology (BSIT) course. I decided to pursue business school instead as planned after my first year in my Associate in Computer Science (ACS) course. I decided to take a master's degree to impress others or to convince them I'm not a fool. Later on, while taking my Masters in Business Administration (MBA) degree--I fell into a scam by a family friend and later didn't even know what Cash 2 Go in the Metrobank credit card was. After a heated argument with someone questioning my course, I was finally told the hard truth I needed to hear, "That proves the Filipino education system really sucks!" I finally had my MBA. Later, I discovered a lot of stuff that I was never taught. One of them was actually the best investment to put into even in the finance classes! Sure, finance classes are needed but shouldn't we teach business students not just how to compute the profit but to also properly invest the profit?

Right now, I even forgot why it's not the ideal time to invest in bonds. When interest is up--the values of bonds will go lower. Bonds are rather restrictive and can't be pulled out anytime. Meanwhile, when interest rates are up--the stock market may go down. It's a very inverse effect. I didn't even know when was the best time to enter bonds except if the financial adviser said so. Isn't that really embarrassing that as a business graduate student I didn't know that? I ought to know that.

We did have a financial seminar at the University of San Carlos (USC). We were taught some basics such as examining financial companies. The basic principle is, "If it's too good to be true then don't take it." However, I feel what was truly missing from the financial seminar was to teach the basics of stocks or other ways to invest in them. One reason why I avoided stocks (until 2018 with AXA Chinese Tychoon Fund which uses cost averaging) was because of the risks associated with them. What I never realized was that day trading was called a speculative orgy by Charlie Munger (read here). Using the word "orgy" might truly describe my feelings. I even tried to use a day-trading simulator (which had USD 10,000.00 virtual currency). The results were a real gamble. I made more losses than I had with my gains.

What I never spotted five years ago was Buffett on college and graduate school. I've been to both. I almost expected stuff like learning to do proper stock investment. Instead, I ended up learning about cost averaging from Buffett himself. Buffett recommends cost-averaging into an index fund for a specified period of time. What was interesting was that Buffett didn't want to go to college and do business immediately. As Buffett says that success doesn't always require a college degree. Some people can have prestigious degrees from prestigious schools. All the while, such people can be supporting really stupid economic policies (read here).

Instead, I decided to think that my MBA degree is never going to be the end of it. I tend to believe that I'm "invincible" because of my MBA degree. There are times a degree is just a degree. That's unless of course if you're seeking to become an engineer, a doctor, a nurse, a pharmacist, an economist, an accountant, or any profession needing at least a basic college education. What I soon realized is that none of Buffett's children graduated college. Buffett even said college may not be for everyone. That's why I'm in favor of K+12 over K+10.

Instead, Buffett said to invest in yourself. Buffett's advice is spelled out as, "Address whatever you feel your weaknesses are, and do it now." I think one of my weaknesses can be my attention deficit disorder (ADD) which causes me to be impulsive. I made a bad financial decision based on being impulsive. I nearly made a deal with a con service because of impulsivity. I invested in the AXA Chinese Tycoon Fund before I learned about cost averaging. During the crash, I did some Googling and found value cost averaging. I opened a GCash account to pay for food deliveries and found GInvest. I ended up finding out that investing in stock funds is long-term. I ask myself, "Why didn't I learn this in school?" I even bought the late Lee Kuan Yew's famous book From Third World to First. I even wonder why isn't it even a recommended reading? I feel so dumb that I only discovered some things later in life.

Right now, I think it's time to rethink how business schools do what they do. I think we need to learn more than just marketing techniques, business analysis using different types of math (and calculus happens to be my favorite approach), accounting, and finance. Sure, I did benefit from very strict teachers that kept my impulsive behavior in check during my undergraduate days. However, I feel like it's never enough for a business school to teach just how to run a company, be an executive, or be an accountant. It's sad how I even screwed up during my MBA days with practical applications. I really feel stupid (until now) as to why I allowed such a bad deal to happen. It's no use crying over spilled milk. Instead, I should continue to invest in myself instead of relying too much on school.

That's why I decided to write this blog sometime after Odette. I really felt the need to reinvest in myself. I did learn a few stuff such as cost averaging and why I should continue my AXA fund. Meanwhile, I could use GCash's GInvest feature for other stuff. I've invested in an index fund. I've invested in two feeder funds. Right now, my aim is truly to buy more during this bear market and sell during the bull market. I really ended up saying, "Why didn't I learn that in school?" This is a challenge to finally change the way business schools think. We can start by talking about Buffett's principles for a start.

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...

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...

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 ...

Started to Invest in the ATRAM Global Equity Opportunity Feeder Fund

It's time to begin a new road into investing. I went from a moderate risk taker to a moderately aggressive risk taker. Of course, I need to be careful with how much money I invest or I don't invest the money that I need. I believe that one could start by investing 15% to 20% of one's income. Basically, it's money that's not needed now. Fortune Recommends gives this ideal sweet spot: Many of the experts we spoke with suggested, as a general rule, to invest a set percentage of your after-tax income. Although that percentage can vary depending on your income, savings, and debts. “ Ideally, you’ll invest somewhere around 15%–25% of your post-tax income, ” says Mark Henry, founder and CEO at Alloy Wealth Management. “If you need to start smaller and work your way up to that goal, that’s fine. The important part is that you actually start.” Some budgeting strategies account for this, such as the 50/30/20 budgeting strategy, which breaks your monthly budget into three ca...

Shaun T. Dy's Business & Economics Perspective Blog

Search This Blog