MORE WORDS FROM THE WISE
More Words from the Wise excerpt from Financial Crunch of PDI 31st January, 2009
It is easy to feel overwhelmed by all the negative developments on the economic front both here and abroad. News of massive layoffs, record corporate losses and grim growth projections have become as much a part of breakfast as bread and coffee these days that it is no wonder that Filipinos fear for their future. This helps explain why people are starving for information they can actually use to help them cope with the crisis. So here’s an extra helping of sound and valuable advice that experts themselves vouch to be effective in good times and in bad.
...don’t spend more than you can afford.
Credit is an important financial tool. Having the ability to borrow funds allows us to grow our businesses or buy things we would otherwise have to save years to afford, such as homes, cars and education. But we need to remember that credit actually represents real money. And the abuse of credit can be dangerous, leading people into debt far beyond their ability to repay. That’s why learning how to use credit wisely is one of the most valuable financial skills anyone can learn. - Mark Watkinson, President and CEO-HSBC
There is no unique financial advice or solution. The most important is the attitude and how you are prepared to face a critical situation. My father, who headed major tobacco companies, always said, “Keep focused on your mid/long term strategy and make sure that whatever decision you make, it keeps you on the right path to achieving it.” - William Hamilton-Whyte, General manager, Nokia Philippines
When you invest, always invest for the long term. As I get older and gain more experience, I begin to realize that only in long term investments, the business value multiplies much larger over time. It is also true with investment in shares—to buy when everybody is selling and hold for a long period, from five to 10 years, you can get a much bigger return than the speculators because over time, shares always go up, of course with blue chips only. And also, long term investment will avoid financial scams from happening. -Manny Osmeña, Chairman, Hilton Cebu Resort and Spa
Never let your income dictate your lifestyle. Always prioritize and put aside money for savings and investments before you allocate money for expenses. - Rex Mendoza, Senior vice president, Ayala Land Inc.
In finding a stock to buy, choose a stock as if you are investing in a business. Invest in a business with a durable competitive advantage and a management you can trust. Buy the stock at a reasonable price. If you find that stock, hold on to it until the reason you bought the stock changes. This is advice from Warren Buffett and Charlie Munger. It has helped me because it goes hand in hand with my trading strategy of letting my profits run and cutting my losses when I am wrong. - Wilson L. Sy, Stock broker and vice chair, Asian Alliance Holdings Corp.
Buy when everyone else is selling Henry Sy often reminded me when I used to service his account as a young stockbroker. He was a patient accumulator, buying stocks and real estate, on the way to building his business empire. I have done well for myself by following his advice and adhering to his business principles.” - Willy Ocier, Vice chair, Belle Corp.
Live within your means but enjoy the fruits of your labor. It’s not how much you earn but how much you save. Spend only for your needs and prepare for your wants. Always keep your feet firmly on the ground. I learned how to survive on my own and experience financial freedom no matter how difficult and challenging the times. - Anna Marie Periquet
Owner, Anna Marie Homes, Kessel Dance Studio
These are some words/advice from successful businessman and woman of today. We can learn from their experiences on how to deal with our finances... we, as an OFW can be a successful businessman if we want too...
gud morning!
