Some Reflection About Business

As you know, I have enrolled myself in a business school to learn Entrepreneurship. Without the commitment of an MBA degree. Just to get an idea of what I would encounter, should I pursue an MBA. It is a 6 month long course and I think I learned a lot.

But as I get closer and closer to the end of the course (it will end on December). I realized that, I am not as enthusiastic as I was when I don't know much about business. Like in everything you don't know, it would look like "magic" at first. But when you know enough about the subject, it ceases to be magic.

And that is where I am at this point. I have listened to people who knew about business and listened to them intently with glaring eyes. It is because I thought that having a business is hard, complicated and in a word, magic. But I realized that business is not magic. Nor it is hard. It is not easy, but at the same time, it is not hard.

I began to question the reason I want to get into business now. When I think about it, before I enrolled in the course, I wanted to get into business to get power and respect. Power to have control of my own time and respect from other people because we seem to respect people who have more money.

I began to question this as I commute to school. Everyday, meditating the reason behind and what keeps me pursuing business. But it doesn't hold up to my character... My character of wanting to know about everything. And I think, going into business will only consume a lot of my time in pursuit of knowledge.

Knowing business itself is knowledge. Maybe perhaps that is the reason why it has been so alluring to me. But trading my time to get into business to get more money vs having more time to learn more about the world, technology, science, philosophy and strategy, is more appealing to me.

I'm not saying that business is not worth knowing. Everything is worth knowing. Everything.

Going into business

I thought about it a lot. I don't know much about business, so why not embark on a journey to learn about it. Maybe perhaps I could build a great business that could rival the Ayalas, the Sys.

I did some asking and did some more. I thought that MBA would be a good education if I would like to get into business. But as I ask more and more people. I came to realize that MBA wouldn't make me a businessman, its more on the skills and experience.

Some people that I respected advised me to just learn accounting, marketing and legal aspects of a business. In which I could enroll to some basic courses. Instead of going into school for 2 years taking MBA.

I am skeptical at first, so I took the plunge and enrolled myself in an entrepreneurship course. In which I find is a lot similar to an MBA curriculum without the 2 years and without the other subjects.

Just on the first day alone, I realized that business people loves buzz words. They like to make things seem... important. I know some fields have this buzz words, but when it comes to business, it seems like the focus is on the buzz words more than the actual principle behind it.

In engineering, you make up buzz words for things that you can not explain, or there are no words that currently describe a phenomena. But in business, why do they have a lot of buzz words for something that is just, profit? Bottom line, net profit, total profit, net income. These are all just money at the end of the day, why do they come up with such words? Why is bankruptcy called chapter 11? Why not just called it bankruptcy and be done with it?

Thank goodness I didn't enroll myself to a 2 year MBA. I might kill myself out of boredom. But! Accounting seems interesting, and I like the idea of putting some case studies into practice. I just don't like to buzz word heavy lectures. It seems fake learning. How could you become educated just by learning another word that describe some words?

Stock Investing Tip # 1: Treat All Financial Advisers & Stock Brokers Tip as Caveats

Financial advisers earn money when you buy an investment product. A 40% commission from the life insurance + mutual fund combo will give him a steady stream of income for as long as you continue to pay the premium. Stock brokers earn money when you buy and sell a stock. The more frequently, the better.

If you can see the problem here, that's good. You don't need this tip. But if you don't, let me tell you why...

Financial advisers and stock brokers are here to help you know where to put your money. But they earn money not on the percentages of the profit. They earn on the action you make. Your profit is irrelevant. They will earn either way. So if you win, they get money, if you don't, they still get money.

If a financial adviser or stock broker told you a tip where to invest, a VUL or a stock, always treat it as a caveat. There is no risk for him if he told you to invest here and there. But there is risk to you. Always, always remember that everything is an opinion. And everyone has their own interests. A financial adviser to meet a quota, a stock broker to make you trade frequently. None of those to make you rich.

That job falls in your hands. Its your job to profit and only you have that determination to make yourself profit in the market. I won't see stock brokers and financial advisers take a bullet for you just so you could profit. Or give you a money back for the money lost in your (or his) investment decision.

I'm not writing this to bad mouth financial advisers and stock brokers, I'm writing this for you, dear investor. Its your money, though many people seem to forget, we used to research for weeks to find the right refrigerator, but the decision ultimately comes to us when it comes down to it. Should we buy? Should we look for another one? Does this refrigerator benefits me in the long term? If we could only look at investing the same way.

Financial advisers and stock brokers have services to provide for you as an investor. They are there to help you meet your ultimate aim to profit in the market. Treat the financial adviser as you would treat a saleslady in the mall, she's there to tell you and help you about the product you want to buy and how they will benefit you. Treat the stock broker as the lady teller in your local bank, helping you with transactions such as depositing and withdrawing. Treat them with respect. But once you see them as someone who knows the key to wealth, you are in a very rude awakening... That key is you. Don't look outside. It is in your power.

How Do You Teach Someone To Invest In the Stock Market?

Teaching someone investing is different from teaching someone how to invest in the stock market. The first one is a general overview of what investing is, it could be real estate, stocks or buying jewelry. While the 2nd one is more specific and will determine the character and personality of the investor.

The hardest question for me to answer is when someone asks me, how to invest in the stock market. A life insurance agent will love this opportunity to sell an insurance product that has investment and retirement plan in it, earning himself a 40% commission in the process. But I'm not a life insurance agent and I definitely won't invest my money in insurance products.

I also don't like the 1 day seminars conducted by a lot of organizations on how to invest in the stock market. I think, that is a bit misleading. It takes me weeks to find out what's the best computer laptop to buy, it takes years of accumulated knowledge to know which specification is right for my needs, yet people seem to think that attending 1 day seminars would automatically make you an expert in a field that few of us can only master... or make profitable.

I do believe that these seminars have value. And I am not entirely against them. For example, teaching someone how to navigate an online stock trading dashboard would be a good seminar for 1 day. But teaching someone how to read charts or financial statements in one day would only do more harm than good for the investor  (but more good than harm to the broker, in terms of money). Since most people would actually study that sort of stuff in university for 5 years.

And I'm also not against insurance companies selling investment products. They are actually good, given some circumstances. But the bad news about it is that when sales quota comes first, the investor's welfare is not the #1 priority. Remember that these are salesmen, and you have to think twice before investing. They have a commission, a quota and are ambitious in pursuit of money. Your returns is probably not the first thing in their mind. Its probably their own retirement.

So how do you exactly teach someone how to invest in the stock market where financial advisers are salesmen and seminars are not enough?

Hmm... that is a big question mark and I still don't know how to answer that. When someone asks me, it always leaves me speechless. Trying to think of things to say.

How did I learn to invest? Books. But given most people are afraid to read books, I don't think I have an answer for that. What if the insurance salesman wrote a book? Reading what kinds of books is another question. But its a lot easier to answer.

The Pursuit of Happiness

I remember in college when I watched the movie by Will Smith about the true story of a guy that went from rags to riches. I also remember having been disappointed with the movie while my friends thought of it as an inspiration. I'm the only one who thought that "He just got a job. What's the big deal?".

The pursuit of happiness, in our world is different for all of us. And I could only categorize them into 4 types. It's important to know which type you fall into, so that you know you're searching for your happiness. Money can either be a means to an end or the end itself. It depends on what type are you.

4 Types of People According to Their Happiness

1. The Pleasure Seekers

These type of people are happy when they are stimulated by events, substance or activity. They are the one who will pursue happiness in the terms of travel, backpacking, going to clubs and parties, meeting new people, hiking the mountains, going to exotic locations, different foods, relationships. Happiness is living in the moment and the experiences you get. Happiness for them is the now and the feeling of being in the moment, without a care for tomorrow. Like living each day as if its their last.

2. The Security Seekers

These type of people are happy being with their family, friends and work. They are happy having work. Having said that, the movie Pursuit of Happiness is based on these type. Family + Work = Happiness for them. Having a stable, work-life balance is the ultimate goal because there is no other way to live life. Being useful to family, organization and society. That is their happiness.

3. The Knowledge Seekers

These type of people are happy learning new skills, knowing about a lot of things to understand or have control of the natural world. The keyword here is understanding the world. Happiness for them is to understand nature, the universe, the world itself. Or to understand people and how they think. In a way, for this type to be happy, it is imperative to have a lot of free time dedicated to learning, reading and experimenting.

4. The Enlightenment Seekers

These type of people are happy when they inspire others to be the best they can be. They are happy when there no clutter in their life. Living on the most bear essentials of life. While security seekers would love a good house, a car in a good neighborhood, these type like the simplest cabin in the middle of the woods living off the land. They are happy when they find time to know their true self and help others know their true self too.

The important thing to remember is that, different people are of different types and most likely pursue the happiness they fit into. I, for example is of the knowledge seeker and the movie "Pursuit of Happiness", which caters the Security Seekers, does not excite nor inspire me. In a summary I think the movie is about a homeless guy who got a good job at the end of the movie. A security seeker may be brought to tears, like my friends. But I am not so moved by this. I cried seeing the launch of a space mission or a mechanical arm working on a paraplegic, but not so interested in a homeless guy having a job.

And with this in thought, remember now, that some of these types are not your average security seekers who would be happy to work until old age. Most of them are unconventional in the work-live-die way. And investing would be a good way to brought about the change to the pursuit of your own happiness.

Define Your Own Meaning of "Wealth"

Who is the wealthier person?

• Someone who drives a P1,500,000 peso car to work with P50,000 savings in bank OR someone uses a bicycle, has P1,500,000 pesos worth of company stocks and has P10,000 savings in bank?
• Someone who frequently buys DVD or someone who frequently buys books?
• Someone who eats fast food or someone who cooks his own food?
• Someone who buys foods in the supermarket or someone who grows it himself?
• Someone who has P2,000,000 worth of a house OR someone who owns P2,000,000 worth of rental property?
• Someone who can afford high medical expenses OR someone who can avoid medical illness?
• Someone who throws a big party every year for their birthday OR someone who invites friends over every night to hang out?
• Someone who earns a lot of money abroad and leaves their family behind OR someone who leaves their work abroad to BE WITH their family?
• In that sense, who is wealthier? Someone who spends time with work OR someone who spends time with loved ones?
• Someone who has a lot of things OR someone who has and needs nothing?
• Someone who can't leave work OR someone who doesn't want work?
• Someone who can see their money in the bank grow OR someone who can see their child grow?
• Someone who pays to fix things in the house OR someone who can fix things in the house?
• Someone who dresses fine, in suits and dresses in the latest fashion OR someone who buys quality (not necessarily in the latest trend) and never have to buy again?
• Someone with a big family OR someone with a small family?
• Someone who owns a gun OR someone who can avoid a fight?
• Someone who follows a religion OR someone who's mind is free from any religion?
• Someone who feel bored when there's silence OR someone who is comfortable with silence?
• Someone who feel bored alone OR someone who is comfortable being alone?
• Someone who knows the latest news OR someone who knows history?
• Someone who knows how to use the latest tech gadgets, know their specs and latest apps OR someone who can create such gadgets, specs and apps?
• Someone who follows other's opinions OR someone who follows his own intuition?
• Someone who can make roaring speeches OR someone who prefers silent deeds?
• Someone who prefers to talk about the problem OR someone who reflects on his own problems?
• Someone who has no time OR someone who has a lot of time?

The Pursuit of the Black Belt

On my list of goals, I said that I want to obtain a black belt in a martial art. Here comes, the hard part, what martial art should I pursue?

This kind of activity is much like investing, it takes careful planning because, at the course of the pursuit, there will be times of doubt, once I know that I have made the right choice, the higher the chance that I will stick to it and obtain the belt.

I have been thinking a lot about this, since obtaining a black belt in a martial art means investing my time, money and body (you may get injured).

Let's see the given variables (me and my condition).. I'm in my 30's, not getting any younger, I'm small, cerebral and doesn't want to get knocked out. I value my brain cells and would like to live a normal life in old age, without punch drunk, dementia or any brain damage. I don't want to fight.

I have a previous experience in martial arts, a knockdown full contact karate, old school style called Kyokushin. Its like muay thai with bare knuckles, no gloves, and you win only when you knock your opponent out or down. And this experience has taught me, fighting will either make you a monk or a maniac.

I became a monk. Metaphorically speaking, fortunately.

So I also want a martial art that does not harm people. But equally effective when there's no other choice. Karate is out of the picture since its a hard style. Bruises and broken bones are its cup of tea. Muay thai and boxing is out as well, even though I admire those arts. I think any form of striking is out. Its either brain damage for me or brain damage for my opponent. Both of which I don't want to have a part of.

Which leaves me with grappling arts.

What's amazing about grappling is you don't need much strength to practice the art. You don't need to be taller. Its cerebral and it doesn't hurt the other person unless you want to. Its the perfect art for me.

My first option was aikido, after reading the book "Angry White Pyjamas" and watching some demonstration from youtube of a master throwing people like paper, I almost got into it. There was one little problem with the art. Nobody would hold your wrist in a fight. Aikido's techniques needs to be performed when the opponent holds your wrist. In the times of the samurai this would have been relevant, as your enemy might try to prevent you from drawing your sword and thus hold your wrist. But today, if someone wants to hold you, it would be more than just wrists.

I always wanted to learn judo. Perhaps if I had been more attentive in my youth, I would have learned the art. But circumstances has made me miss the chance. I'm contemplating the possibility of learning judo, but the thought of it as being physically demanding, makes me a bit wary, same goes for Greco-Roman Wrestling.

Jujitsu. This I think is the perfect art for me. I did attend one class just to try it out, and I liked it. Less focus in conditioning and building strength and more time with sparring / rolling / techniques. No striking and less injuries. The art is effective, because every training session, you go against a person who will 100% defend or resist your attacks. A focus on technique rather than strength. I have seen smaller guys tapped out someone bigger than them. In striking arts, this is not possible. As proof than even 5lbs advantage from a boxer can kill.

I think I found my art now comes the pursuit of the goal.