Comments on: Hit the books Louis!

By: Randell Tiongson

Randell Tiongson — Wed, 24 Mar 2010 23:22:09 +0000

@ Robert.. you can cosider the Certified Financial Consultant (CFC) Program.. http://www.ifcphilippines.com/

By: Robert

Robert — Mon, 22 Mar 2010 03:53:49 +0000

Would you please advise references, books, websites and others to tap onto these irrational stuffs? I don’t fully understand these measurements/indicators but it is interesting to study… I would just like to ask if there are short courses for these stuffs? thanks. As some authors point out these are not exact science as maybe compared to Mechanics, Physics, Machine design where we are trained to but of course there are points from these irrational thinkers that we can put into positive investment considerations… thank you again.

By: Raffy Pekson II

Raffy Pekson II — Wed, 17 Mar 2010 19:37:51 +0000

As a non-financial guy, that indeed is a total nosebleed, Randell. LOL! Your layman’s version to financial gooble-d-gook is always a welcome relief than reading Louie’s books. Maybe you should just translate all his books for today’s (ir)rational world, eh? Nah! Just keep conducting those great seminars!

By: Rafael J. Azanza

Rafael J. Azanza — Wed, 17 Mar 2010 19:22:41 +0000

The math of diversification can be grasped easily by that famous “umbrellas or ice cream” problem, a copy of which I would be glad to email Louis.The big deal is that, if you diversify and invest in BOTH an umbrella business, AND an ice cream business, you are mathematically guaranteed to make at least X profit whether it rains (so people need umbrellas) or it’s sunny and hot (so people want ice cream), or it’s partly both rainy and sunny over a certain period.
You could put all your eggs in one basket – say, invest all your money in JUST an ice cream business- and if the days are sunny yes you will make more profit with all your investment in an ice cream business than if you split your investment into both businesses; but if it’s rainy you lose all.
Diversification is like riding on a smooth hi-way, a little slower than absolutely possible but you will make it to the end and you will not crash; not diversifying means you might travel faster, but in a non-diversification-type hi-way there may be holes and you might crash.
If you are managing funds for people, you will want to trade-off some incremental MAXIMUM POSSIBLE profit, for an ASSURED somewhat lower but sure profit.
The gist of most Financial concepts can be illustrated by simple examples. But to be more rigorous, yes, there are those formulae and graphs.Enjoy yourself in Financial Engineering, Louis! You will never regret getting that financial grounding early in your life. You probably have 40 years or so until you retire at 65, and you will be compounding your savings for all those 40 years ! To hell with the SSS (it is peanuts anyway), you will answer for your own Retirement.