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  1. Join Date
    Oct 2002
    Posts
    10,820
    #11
    first of all, going into business with relatives is a bad idea. even if they are your siblings. or even your twin brother. kung dati na existing yung business and minana nyo lang sa parents nyo then that is another matter, because it can be assumed that the founder (the parents) had already instilled in the children the discipline needed, and had delegated the responsibilities and obligations. pero kung ganyan na umpisa pa lang, malabo yan. there will always be one who will not work as hard as the others, and best bet is that one loafer will be the first one to complain why his/her share of the profits is less. and there will always be one who will take advantage of the others' lack of knowledge (and might even intentionally deny that knowledge) so that he/she will benefit the most from the venture. ang pagiisip kasi, kamaganak so ok lang.

    well maybe you and your relatives are not like that. i can also say that i and my relatives are not like that, too. but then again whenever any of my relatives comes up with the idea of a joint venture between us, the always ready answer of everyone is "kay buti na sarap ng samahan natin tapos sisirain mo sa pera lang, mag-business ka mag-isa mo!"

    anyway, 40% gain for a mutual fund is not that rare, if you invested at the right time. kung last year pa sana kayo nag-umpisa then that is easy. there were mutual funds (local ones, like philam, sunlife, etc.) that made more than 40% last year (i gained 82% from sunlife financial from june 06 to june 07). pero if you invest TODAY, i think the gains will be lower because the pse is at its highest in 70 years. looking at past 5 years performance of the local mutual funds i think realistic projections for the coming couple of years will be much much less than 80%, more like 18-20% but not 40%.

    but i still suggest that if you will invest your money (mutual fund or otherwise) do it individually. that way you keep your family relations free of the troubles a joint venture can create. the words "business" and "relatives" don't go together well.

  2. Join Date
    Mar 2007
    Posts
    130
    #12
    i suggest invest your money in something you're familiar with or me knowledge ka about... its a fact of life that for every 1 winning investment that you hear about there's 10 more that lose money on it... syempre you only hear the "i earn this much with this investment" but those that lose money are embarassed to proclaim "i lose money in this investment"... invest money in something you're good at and the risk of failure reduces...

  3. Join Date
    Feb 2007
    Posts
    48
    #13
    am getting a lot of good advices here. we are three on this one. a cousin is shelling out 2M, another relative and me 1M each. these are hard earned money. my 1M is about half of my savings. Yebo, i think your right that if we have invested in mutual funds last year then the returns would had been great. But as it is we only thought of this now. Saw the PSE ending for today and there is a resistance level at 3600. So even if we invest is stocks now i think it is a little bit too late.

    we love cars althought we dont own expesive ones. is buying and selling of cars profitable enough for a 4M starting capital? we also thinking of buying old houses, remodelling them and selling for a profit. we are taking our time since this will be our first venture together.

  4. Join Date
    Oct 2002
    Posts
    13,415
    #14
    Simple answer: Invest in something you're good at. Everyone will have good suggestions, but it's not our money. To invest in something you're not educated with is a very high, uncalculated risk (i.e. GAMBLE)... So take your time studying what you're good at and educate yourself further with the technicalities of that chosen investment before putting a dime into it.
    Last edited by theveed; June 27th, 2007 at 02:41 PM.

  5. Join Date
    Mar 2005
    Posts
    8,837
    #15
    if you really want to engage in buy and sell, dapat business. buy a company, learn the ropes, if you dont like, sell it. if you do, hire somebody to manage it for you. then buy another company, learn the ropes, then same scenario

  6. Join Date
    May 2006
    Posts
    357
    #16
    Quote Originally Posted by theveed View Post
    Simple answer: Invest in something you're good at. Everyone will have good suggestions, but it's not our money. To invest in something you're not educated with is a very high, uncalculated risk (i.e. GAMBLE)... So take your time studying what you're good at and educate yourself further with the technicalities of that chosen investment before putting a dime into it.
    yeap, what he said.

    When you guys pooled your resources, you should have also sat down and pooled your accumulated skills. figure out what it is that you guys are good at, what it is you are willing to contribute in terms of time and manpower, what it is you are each personally willing to commit to, in order to help grow AND protect your investment. Get it all down on paper, get 100% commitments from each investor and start from there. You may figure out that you have a possible business right under your noses.

  7. Join Date
    May 2006
    Posts
    357
    #17
    Quote Originally Posted by club25 View Post
    thanks for your suggestions. have you heard of PruLife UK? a friend of my cousin is trying to convince us to invest our money there. i think its a insurance firm where your money will be invested in mutual funds stocks, etc. according to her the return of investment in a year will go as high as 30 to 40%.
    High returns = Higher risks.

    If you really worked that hard for your money, then I would be more careful about where you're going to invest it than just handing it to someone else under an assumed capital return. FYI, REAL mutual funds have an average rate of return at less than 10%. Closer to 6-8 actually. Anybody telling you it will be more than that should already be suspect.

    http://en.wikipedia.org/wiki/Mutual_fund

    I would personally rather invest it in something that actually has real and material assets that I can at least liquidate to have some sort of protection against loss.

    Do your research, it's also called "due diligence". No matter how hard you worked for your money, when you couple it with irresponsible investing, you will be almost guaranteed to lose it.

    As a rule of thumb, you normally want to spend about 5-10% of the time it took to earn an amount to do research in how you will invest it. If it took you 10 years to save up that million, you will want to take your time and spend about 6mos researching your chosen investment. Now, if it took you just a month to make that money, logic assumes you can make more in the same amount of time, so you can get away with a little less research and more risk. It's all relative.

  8. Join Date
    Jun 2005
    Posts
    155
    #18
    4M would give you...8-12 cars in stock just in case you want to try selling and buying of cars.Study the trade...know the market price of all cars.As a start stick to "low budget cars" 150K Up.A seasoned buy and sell would earn at least 200thou net a month(5%) for a capital of 4M.But there are jackpots in trade in,financing,insurance etc...and this would give you higher income..mga 10-15% a months granting the whole 4M is invested sa mga oto.

    Its risky business...you have to check and double check the documents/car itself if it is not tampered or carnapped.

    Goodluck...PM me if you have further questions

  9. Join Date
    Oct 2002
    Posts
    10,820
    #19
    Quote Originally Posted by ogpro View Post
    FYI, REAL mutual funds have an average rate of return at less than 10%. Closer to 6-8 actually. Anybody telling you it will be more than that should already be suspect.
    bossing, tama ka na 6-8%, pero mali ka pa din. kasi yung 6-8% na alam mo e sa US yan, forget mo na si club25 e nasa Pinas. you based your answer where you're at (los angeles), the ts is in manila.

    i will not put any figures here anymore, i leave it to you to do the research.

  10. Join Date
    May 2007
    Posts
    31
    #20
    First of all, shy away from pooling money. You will be carrying the risks and souls of these people who have high expectations on return which you would most likely not meet.

    Secondly, putting up a business in Phils is high-risk. Statistics say that only 5% of new businesses suceed after 5 years. Then only 10% of the 5% survive after 10 years!

    What I would do is just separate my cash with these people and put it in a managed fund with a well known multi-national bank. Your income potential is about 20 to 30% in one year at the rate the economy is growing (6.8% GNP), and this is medium risk.

    You can either go into any of the following:

    1.Diversified Capital - more inclined in bonds ( 60% Bonds 40% Equities )
    2. Diversified Balance - more inclined in equities (70% equities 30% bonds)
    3. Equity (100%)

    Of course, the more equity (i.e. stocks), the higher the risk. I just read in the papers that s**life yielded 64% last year on their equity managed fund.

    Don't believe that managed fund is high-risk. Risk is something you control by changing the mix of your portfolio. If you have less appetite for risk, then go into more bonds than equities. If the economy goes down the shitter, you won't end up with zero because the investment is pretty much spread out.

    If you go down this path, you don't have to be worried about others because it's just your money you're dealing with. Not unless you only have 100k invested in it. If that's the case, then don't even bother and get out of the deal.

    Don't lure yourself with the illusion that you are a business owner in the Philippines. There are so many flukes out there that are living the lifestyle but are in real serious debt. Market in the Philippines is too small for a business to get big, and it's all taken by the big chinese players who are so smart with it.

    Don't make your life complex. Just invest with your own money, and let them manage their own.

    Cheers

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