Who is Washington SyCip

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source: http://www.century-properties.com

Washington SyCip (b. June 30, 1921) is a Chinese Filipino accountant, founder of the Asian Institute of Management and Sycip Gorres Velayo and Company. 

A product of the Philippine public school system, Sycip was in the United States completing a post-graduate degree during the outbreak of the Second World War. His father, who was in Manila at the time of the Japanese invasion, was taken into custody and detained by the Japanese. After hearing reports that his father was executed by the Japanese, SyCip enlisted in the war effort. He was recruited into a "special code breaking" class and was later deployed to India as a codebreaker.

After the war, SyCip started his own practice of accountancy. He eventually partnered with Alfredo Velayo and Ramon Gorres to form what is now known as SGV. Sycip has received numerous accolades in the fields of accountancy and consultancy.

His father, Albino SyCip, was known as the "Dean of Philippine Banking". The senior SyCip was one of the first ethnic Chinese to be admitted to the Philippine Bar.

SOURCE: www.wikipedia.org

For a complete biography of Washington SyCip click here.


For his affiliations click here.

When in doubt dont buy a stock

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source: http://www.ipprospective.com

I have been out for quite some time... so here am I again...

At times one may be hesitant and then let the day pass then we learn that the stock we are planning to buy just drop further or if worst bad things happen and the company started to go from one problem to another.

Back then the SEC(Securities and Exchange Commission) made an ad on all TV stations regarding the part of the public to know more about the companies that one may invest into. The message was" Invest: Investigate". That time a lot of Pre-need and insurance companies are closing one after the other and one has been all around the news for the alleged embezzlement of the officers of the company.

So I guess you are thinking then we shouldn't invest in companies anymore because they might close down run away with our money. The thing is as an investor one should always do what we call due diligence. What is "due diligence" then?

Wiktionary defines it as:

A legally binding process during which a potential buyer evaluates the assets and liabilities of a company.

Investopedia defines it as:

1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.

2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party. 

In a due diligence this is where audit and Fundamental analysis comes. But such is too hard to do so for ordinary investors like us we should always check their Financial statements that is filed to the SEC. 

 source: http://nrgshift.com

At least we can check how is the standing of the company. 

Is it Liquid(by means of the Current Ratio or Working Capital Ratio which should be at less 1:1)? 

How big its Liability in relation to Shareholder's Equity(by means of  Debt to Equity Ratio that shows if such company is debt strapped that is the likelihood of control is to creditors)? 

Is it Profitable(by means of the Profit and Loss Statement), Is it growing(by comparing This year from last year which is commonly known as Fluctuation Analysis) .

Again that is why when picking stock to invest into one should make a background check on the company. Some stocks have not so good fundamentals and performance and thus they end up into what they call speculative stocks. Investors and players speculate that a good news about the company will make a short uptrend thus players buy it at a lower price and sell it once the price goes 2-5% up. They use volume to profit from such. But as an investor in which one looks at the long term benefits of an investment one should always do what we term "home work".

Again a reminder to do due diligence, invest in fundamentally sound company, invest only free cash, and trade at your own risk.