Investing Monday, Dec 17 2007 

The past week has been very busy at the office.  With the year nearing its end, I have to contend with endless reports that must be generated, next year’s budget must be finalized, goals must be set for the following year,  and staff clamoring for a higher Christmas bonus.   Plus, I have to finish the business plan of the venture I am working out with a Finnish group.    Then one morning, one of my staff invited me for a lunch meeting to discuss the IT company that he is setting up with a friend and the possibility of being one of its investors.   I’ve been discussing with my staff about the the potentials of setting up a Medical Transcription company specially that our mother company is the largest hospital group in the US.  Just think about it, our mother company owns and manage more than 190 hospitals in 22 states.   The number of doctors working in these hospitals, who can be our captured market, is mind boggling.   

The IT company they intend to set up aims to service the ICT requirements of BPO companies.  I told my staff’s business partner that I may not be able to invest in their company but I sure can refer them to somebody who might be willing.   I follow Warren Buffet’s principle of investing only in the things you understand.  And I do not have sufficient knowledge about ICT consulting and servicing  (which is very ironic and surprising because as a high school student I was part of the Philippine team in computer programming and I used to be the chairman of the sub-commitee on IT Education of the Philippine Chamber of Commerce, yeah, its a long and weird story ) so I prefer to put my funds somewhere else.   Moreover, I was told that the projected rate of return is 10% p.m. or about 5 years ROI which for me is too low considering the risk involved. 

Whenever I invest I always consider three things 1) risk 2) return 3) liquidity.      For small time investors, like me,  liquidity and risk is of utmost importance.  The PSE is presently,  performing extremely well, despite the current political situation, with the average performance of mutual funds hovering around 30% return for this year.   I learned from a former Chinese boss that any business that will take you more than 4 years to recoup your investment is not a very appealing one.     Further, if you invest in a business, you have no, or perhaps a little, liquidity.  If will be very difficult for you to cash out in case you need the funds, unless there’s another investor who wants to purchase your share. With mutual funds or UITF,  you only need several days of processing to have your cash back.   So at present, in my opinion,  mutual funds and UITFs are better investment instruments compared to starting up a small business. 

There’s a simple computation for determining at what rate or how long your investment will double or have a return on your invested capital.  It’s call the rule of 72.   For example, if you want your money to double in 5 years and you want to know at what rate of return it will double, just divide 72 by 5. Which means that you need to have an annual yield of 14.4% compounded annually for 5 years for your money to double or have your ROI.    Or let’s say, you have an investment that yields 15% per annum and you want to know in how many years you’ll have your ROI.  So divide 72 by 15 and you have 4.8 or in less than 5 years, you have your investment back.

Like I said, the stock market is perfoming excellently.  Specially with the sub-prime woes that is hounding the US financial market.  Fund managers are now putting their war chests outside the United States where it is much safer and where the companies are performing better.  Perhaps the only problem we have to worry for the PSE and the Philippine economy is that the people will finally take Sen. Trillanes and Teofisto Guingona seriously. 

A Strong Peso? Tuesday, Dec 11 2007 

Filipinos and the business  and financial community has been so accustomed to the peso being a favorite whipping boy of the almighty dollar that the peso’s skyrocketing value is viewed as an economic miracle for some and as an economic bane for others. 

Working for an American company,  all of the financial computations I made are converted into dollars .  As early as August or September of each year, I would make the budget proposal for the operating expenses of the Philippine office for the following year.   When I made the budget proposal for 2007, it was in August last year and the exchange rate is about Php54 to $1.00 .   The surprise strengthening of the pesos has greatly squeezed my budget because my $60K to $80K budget each month now has a lower peso value.   Part of my compensation is in dollars and I am also feeling the blow.  If a foreign company is wobbling from the peso appreciation, what more the OFWs and their families.

A high peso value has its good and bane.  A high peso cushions the rise of oil prices in the world market, specially in the winter months wherein the demand for this commodity is at its highest.   It somehow make foreign goods cheaper for the Filipinos to purchase.  On the other hand, a strong peso affects not only the OFW, Filipino exporters but is also hurting the BPO industry.  I’m in talks with a group of investors who wants to start up an outsourcing company.   The figures now, with the dollar falling to Php41, are no longer very appealing compared to financial figures several months ago.   Fortunately, I’m also doing another business venture with a group from Finland which will enable me to be compensated in euros.    I maybe wrong, but a strong peso will also hurt the already taking-off tourism industry.    The tourists’ dollars will go a long way in Thailand than in the Philippines .  Plus, the fact that Thailand has better tourism programs and peace and order situation. 

Sadly, the Philippines is so used to a weak peso that its  monetary policies are designed to protect the peso from weaking but no policy to protect the peso from strengthening.   Is it just the government’s shortsightedness, or is the idea of a robust peso a far fetched one. 

Miranda Priestly Monday, Nov 19 2007 

It’s official, my new boss is a personification of Miranda Priestly, the demanding boss from the novel and movie The Devil Wears Prada.  Last Thursday night, I received a call from her at 11p.m. and the call lasted for exactly 1 hour and 27 minutes.   Then Friday night at around 11:30p.m., my phone is again ringing with my boss’ name on the screen.    Its one of those moments wherein you would curse Martin Cooper or Henry Sampson (it’s still a debate on who made the first cellular phone) for coming up with the bright idea of a mobile telephone.   Or discuss with Alvin Toffler that his prediction that mobile communications technology would change the way companies do business and thus, have a social impact on its workers is correct.     At least the Friday night’s, or is it already Saturday?, call is shorter than previous night’s call, it lasted only for a mere 39 minutes and 17 seconds.   But that phone call contains more after shock.   She finds my November 20 deadline is too short for our UPHS project and she needs my team to finish it by Saturday so that on Monday, I can report to her the result.   To quote her, “I don’t care if its a Saturday tomorrow.  I don’t care how many of your staff will render overtime tomorrow, I don’t care how long that overtime will be as long as you finish what needs to be done.  And its up to you how you will inform your team to report tomorrow”.  So at past midnight, I became a Miranda Priestly to my staff, calling them one by one even if some of them may still be having their Friday-payday party, even if some of them maybe already sleeping.    And unfortunately for them, they answered my call.   

 So, eight hours later after that phone call, me and my staff are in our office to finish what Miranda…err, shall I name my boss?, required us to accomplish. 

Early Morning Meeting and Lunch Meeting Wednesday, Nov 14 2007 

In an episode of the sit-com Spin City that starred Charlie Sheen, it was said that there’s no such thing as an early morning meeting.  That if you have a date, and your date tells you that she has to call it for the night with the excuse that she has an early morning meeting the following day, chances are the date is a disaster,  because early morning meetings is just an excuse to get out of a date run sour.

That’s a sitcom.  This is real life.  This morning, I was late for an early morning conference call with my bosses in Florida.  And not because I had date the night before.  Fortunately, I have the perfect excuse,  I’m having problems connecting with the conference call number. 

Maybe that the Philippine office is underperforming or maybe that my new boss is the micromanager type who wants to keep a close eye on an office on the opposite side of the globe.    Whatever the reason, I have to accept that regular early morning or late night conference calls will be part of my working life.   I wish life imitate sit-coms. 

Had a lunch meeting with Chris, my Canadian-German friend, at Figaro.  He’s also into MMA and is currently teaching English in a Korean school along Emerald Ave.   We discussed our new business venture of sub-leasing condominium to Korean students.     These students pay around $400 to $600 per person per month for board and lodging.   Cramping 5 teenage Koreans in a 2-bedroom unit will generate revenues of $2,000 to $3,000 a month.  Good prospect, but what about start-up costs and monthly expenses?.  So I’m tasked to make a financial study and business plan before we risk our hard earned money in this venture.   At first glance, it has good profit margin and cash flow.    Must also check some legalities of sub-leasing to foreigners. 

At the lunch meeting, Chris just ordered sandwhich for the two of us.   This is one of the biggest mysteries of life, how do westerners, last on having just sandwhich for lunch?   Sandwhich is just for snacks for Filipinos.  Lunch for Pinoys is having 1 or 2 cups of rice with meat, soup or sometimes even vegetables.  Plus, aside from lunch, pinoys also have the afternoon snacks.  Another bigger mystery is despite surviving on sandwhich for lunch, a large number of westerners are obese? While most Filipinos who eats almost every 4 hours are are slim?  Is it the weather? Is it genetics? Lifestyle? Hmm.  Must do my research and write another article. 

Of Workaholics and Office Gossipers Monday, Nov 12 2007 

Last Friday night, I stayed at the office until 12midnight, because we had a conference call with my bosses in the US.  The call started at 10p.m. instead of the usual 9p.m.  because its already daylight saving time in the US and Florida, which is on Eastern Standard Time, will not be 13 hours behind the Philippines.  Due to several issues concerning the operations of the Philippine Office and with the IELTS summit in Cochin, India being moved to next year, the conference call lasted for two hours.   So, there I was, alone in the office at 12 midnight.  Did I mention that before we moved in, the former tenants of our office space is a company that sells columbarum and,  is ironically named, Ever Living? The first time we checked our current office space, there are still some samples of epitaphs and urns scattered in and around the area.

Then, the following day, Saturday, after dropping my daughter Arphie at her Kumon Class at Shangrila, I proceeded to the office to do some work… our office is closed on Saturdays.   I have really transformed to a creature that 12 years ago, vowed that I will never ever become…a workaholic.    I first read this term back in 1987, when I’m in  Grade 6 while reading Fortune Magazine in an article about Bill Gates.   I should have realized that reading Fortune and Forbes Magazine when you’re 12 years old is a sign of an impending doom.   I first saw the manifestations of a workaholic in my sister.   And 20 years later, I’m officially a dreaded workaholic. 

I now detest holidays and repulsed by President Arroyo’s “Holiday Economics”.    But there’s a reason for this, even if there’s a holiday in the Philippines, our main office in Florida is not celebrating the same holiday, so work still goes on 12 time zones away.  So, I would receive urgent e-mails and phone calls 12 time zones away, and very often, I would receive phone calls at 11 or 12midnight.    Last Holy Week, my family and I took advantage of the loooong holiday and spent 11 days in Bangkok.    When I got back at the office,  almost 300 e-mails flooded my Inbox.   I have to spend two days just to read and make sense of all the exchanges in the e-mails.    For the next two weeks, I have to work overtime, skip meals to just to beat deadlines.    In the recent long holiday, to celebrate All Saint’s day, my family and I went to Pattaya for a vacation.  Its a different definition of vacation because instead of the usual r and r, we spent 5 days of training for 4 to 5 hours a day in muay thai.   All we did was eat, sleep and muay thai… I wish.   In the evenings, after dinner I have to go to the hotel’s business center to do some office work.    Plus, the night before we flew to Thailand, I have to stay at the office until 11pm, again for a conference call.    Not only that, I have a conference call of my own with my team while waiting for our flight at the airport.  We’re just lucky that we saw a family friend who works for PAL and we were given the privilege of staying at the Mabuhay Lounge.  So I was able to do my conference call and do some work without the usual airport noise. 

One night while in Pattaya, we were watching the movie, The Devil Wears Prada.  I sort of feel sorry for Anne Hathaway’s character, Andy Sachs, for having a boss who doesn’t know how to draw the line on what is working time and personal time.    Andy would receive calls and orders from her boss even while on vacation.   And I said, I don’t want to have that kind of boss.  Well, guess what, in less than 15 minutes after I said those words, my boss called. 

Another symptom of my being a workaholic is churning out my PDA at every moment of repose.  Either when I’m riding in a car, or waiting in a restaurant and even while waiting or inside the elevator, I would work on my PDA that contains documents and spreadsheets related to the office.    It’s one of the reasons why I don’t want to drive, because I can’t work on my PDA while driving.  One time, when my sister asked why do I have to do something in the car while I’m on my way to work when I’m going to the office in the first place, and why do I have to spend so much on a PDA just to be able to to my work.  Whoa, hold on there.  My sister, who is more workaholic than me, is questioning my being a workaholic?  Did I become a more hideous creature than she is?  I’m afraid that I am.  Remember, the day after my mother died… I was in the office. 

My only solace in working the way  that I do is I can provide the luxury and comfort that my family deserves and ensure a brilliant future for my daughter so that she will not experience the poverty my sister and I grew up with.    I want to be capable of helping her achieve her dreams.    For though I may not be able to attain my dreams,  at least I can make her aspirations come true. 

After spending a Saturday afternoon in the office, I picked up my daughter from her Kumon class and went to nearby Megamall to buy new discs for her Gameboy and watched the movie, The Gameplan.  A Dwayne “The Rock” Johnson comedy movie about an instant and reluctant father.   

Another creature that is dreaded in any office are the Office Gossipers.  These repugnant organisms are gifted with sonar ears that they can hear if a pin was dropped several meters away.  If they can do that, what more about the normal, audible human conversation?   They also have the capacity to discern if a conversation is work related or personal.  Their ears automatically adjust whenever a phone rings or if colleagues would gather and talk.   They also have the uncanny ability of making themselves within hearing distance without being noticed by the people they are eavesdropping on.    Aside from their sonar ears, they are also endowed with mouths that can replay, without missing a single word, everything their poor victims have said.  And the victim would know the office gossipers have struck when they receive that kind of look from their colleagues.  If the US military only know the existence of such creatures, they don’t have to spend millions of dollars trying to develop  sophisticated intelligence or spying technology and equipment.   They will not have any trouble in locating and capturing any elements of Al Queda or Jamaa Islamiya.  All they have to do is get these office gossipers, give them a few training then let them live in Afghanistan, Iraq or even in Mindanao.  It’s a sure bet that in just a few months, these office gossipers would be able to locate and give information about the terrorists.   Come to think of it,  the world would be a better, safe and secure place with them around.  All Hail the Office Gossipers!!!

Seriously, I have the misfortune of having staffs  are this kind of  creature.   There was even an occasion that I told them that I know they talk behind my back.    But last Saturday, when I learned that an office gossiper struck again with me as the victim, I snapped and confronted them.  I was so disappointed and pissed off because I have been a good superior to them and I don’t deserve anybody to talk shit behind my back.   One of them was marked for termination and my counterpart in India told me innumerable times that I should fire him for inefficiency.   But I want to give this person a chance to improve and prove himself worthy of staying in the company.    So I painstakingly trained this person, spend several hours with him just for him to be more productive.  Another had personal problems and on several  occassions, I gave my assistance even though it already out of my bounds as a manager.    When she was being threatened by harm I gave her assurance that while she’s in my office, nothing will happen to her and I’m ready to defend her against anybody.

Would a confrontation make make a phenomenon and turn these office gossipers to professional workers who focus on their duties and responsibilities instead of other people’s lives?   Hmmm, I don’t think so.  I do not fancy myself as a saint who can perform  miracles.