Phisix (August 29, 2008)

The Philippine Stock Market Index closed at 2688.09 last Friday. It is up from 2653.18 last week. Although long term is still uncertain and mostly bearish, the short term is starting to pick up. The 25 day average is up and went past the 75 day average this week. MACD line is going towards positive land, and RSI is also up.

For short term investment (up to about a month), this could be a signal to buy. For intermediate term investing (6 months to a year or two), the best thing to do is buy a balanced mutual fund, or find some good deals by searching the companies you are interested in buying. The same goes with long term investment. The data this end-September is starting to clear out, and will most likely be the data to anticipate.

I believe that most of the listed Philippine companies are very much resilient. I am looking at the Ayalas as usual, and perhaps Jollibee, SM, and Manila Water. Next blog, it will be the fundamentals of the said companies.

Hey, something is cooking on BPI-Trade. You can invest in the Philippine market for as low as P5,000.00. You just have to enroll your account with your branch. I bank online at www.bpiexpressonline.com and I pay most of my bills there. Of course, my advice is to study first before investing. It takes a lot of time to buy the right company, and only seconds to decide not to. That's Buffett. At his simple best.

Google. Back at one.

Google is numero uno! Best big company to work for. Rank number one.

This is according to the ranking of Fortune Magazine this year. Google is ranked 150 in the Fortune 1000, and gives stock options to 99% of its employees. Why is it number one? Read the previous statement. And add this: GOOG (Google) went past US$700 a share. Go figure.

Stronghold Game

This is the cover of the Stronghold Game as can be accessed here.  It was released in 2001.  One thing that keeps me up all night.  A strategy game set in the Age of Castles, one learns a lot from this.  Here are some of my realizations from this game that can be applied in life, and in managing companies:

1.  One cannot be too goody-goody.  When people are not afraid of the leader, the subordinates wander around.  They are not efficient, and can often be seen resting and being lazy.  One needs to be tough and fill the castle with "bad things" in order for people to be afraid of you.

2.  Religion cannot affect work.  I remember one office mate back in the 90s who would absent himself during devotional days.  He was told: "Duty first before devotion".  He filed for resignation.  

3.  To balance fear, you have to give them a lot of food (double rations).  Applied today, one must fulfill the lower physical needs (Maslow, Herzberg) in order for them not to leave the "castle".

4.  If they leave the castle, you have to either give them more food, or lower the taxes, even give them a little bribe to make them stay.  You can also give them entertainment (traveling fair, jester, marriage) in order to turn their minds away from the empty granary.  In present day companies, if one cannot give enough compensation, management can resort to entertainment - company programs, outings, team building whatever.  It can also resort to giving small gifts in order to keep key players/employees.  When things turn right, then go tough again.

5.  No matter how high the taxes, people will be happy if they have food, food, and food.  Fulfill the physical needs and then, tax them like crazy.  In the macroeconomic scenario, one can raise the taxes if the basic needs of the people are taken cared of.  This should be the priority of the government.

6.   The machines should be placed considering time and motion.  Else, the time required to produce goods will be multiplied.  Realization:  We need more (Industrial) Engineers.  We should listen more to the science of the experts.  Finally, we should study our production cycle.

7.  Everybody must be in their proper place.  We cannot have more quarrymen than we need.  We cannot multiply woodcutters aimlessly.  I am sure I am going to hurt a lot of people but here goes:  We cannot send all our children to Nursing because the projected demand we are contemplating (behind the background of 70-80k a semester program) may not be realized after four or five years.  Else, we produce underemployment or a terrible mismatch of skills and position.  The Government should prevent an overflow of one program by mandating stiffer regulations on schools.  There are schools who have yet to produce a board passer.  Yet they advertise nationwide, using those artistas.

8.  All surplus must be sold.  Applying now, we must be lean and mean.  All unnecessary things must be sold and converted to liquid assets.

9.  A huge amount of gold, after some time, gets boring.  One should experience war from time to time.  In life, success is sweeter after every battle.

10.  No matter how hard the terrain, one can build a castle and become successful.  No matter how hard the times, one can be successful in business.  One needs a lot of expertise. One needs to study a lot.  The leaders can show the way.  

11.  In any siege.  If the leader is killed, no matter how many soldiers you have, you lose.  One must then take care of keeping the leaders.  The others are just wheat grass.  In the company, workers can come and go.  But the leaders must be kept.  Else, the stronghold falls.

Your stronghold awaits you.