Pinoy Business Coach

There has been large amounts of media coverage regarding the Legacy investment scandal and I am sure that we know someone (if not us) who has in a way been entangled with this scandal who lost tons of money.

Even here in the western tip of the Philippines, angry citizens continue to scorn and 'pretend' to go after the Legacy group so as to get their money back. I use the word pretend since knowing the judicial system in the Philippines plus the corporate clout which the owners of Legacy can always blanket themselves in, the pursuance of such an endeavor becomes .. a dream.

Lessons of the Legacy investment:

LESSON NO. 1- IF THE OFFER IS TOO GOOD TO BE TRUE, THEN IT IS.
The double your money scheme worked out in the beginning to it's first patrons but in the long run this kind of leverage is self defeating. As funds continuously came in, corporate heads became to greedy and sidetracked people's money into non-performing assets and doodads..

LESSON NO. 2- ABDICATION INVESTING IS DANGEROUS.
Abdication is just a big word that means delegating irresponsibly. In any investment, the investor is required to do his part to look at the details on how the money is used, where it is going and why it is able to produce a 20% per annum return. (Double your money in 5 years is essentially 20% per annum in interest)

LESSON NO. 3- THE R.O.I IS JUST ONE OF THE BASIS FOR INVESTING
Naive people pooled their money to Legacy without thinking further and worse, without even thinking at all. Just because they were promised that their money would double in 5 years, citizens began pouring their life long savings into the fund. Other questions should include:

1. Who is incharge of the fund ? - Berkshire has Buffet, PLDT has Pangilinan, Globe has Ayala, SM Holdings has Henry Sy.
2. What is the track record of the one in charge of the fund ?
3. Who is on the management team of the one handling the investment?
4. Are they trustworthy?

Being a businessman myself, I can realistically say that while there are many endeavors that yield superior results, there are also tons of such endeavors that do not give as promising yields. It takes a great mind to see such opportunities, and the people in possession of such minds are getting scarce.

LESSON NO. 4- DOCUMENTATION IS IMPORTANT
It is my prediction that the smaller few that will be able to get back a big percentage of their investments in Legacy are those who kept track of every Official Receipt, photocopied each transaction, kept every personal records, bank receipts etc..

LESSON NO. 5- QUESTION GROUP THINK
Group think was coined as the general perception of the population on what is 'hot' and what is 'not'. It is often called us 'herd' thinking or going where the masses are. With too much of the population getting into Legacy and describing the 'very' easy way to accumulate wealth through their no-brain policies, the populace was led to a wind fall.

LESSON NO. 6- GOVERNMENT IS ACTING LIKE..
Never be misled into thinking that the government effectively regulates entities that protects the masses from deception. Government is just government, a poorly run entity that cannot even manage it's own affairs which seeks to cure the 'flu' of the people when it is infected with HIV (regardless of which nation on Earth). Like an octopus that has nails instead of tentacles.

Pinoy Business Coach believes that in the entrepreneurial spirit comes the ability to think logically in terms of investing, the ability to steer off the pit holes of public insanity and ensure superior returns on money, sweat, blood and tears.

Please check out my other blog: http://philgoldandsilverinvestments.blogspot.com, which will definitely help you attain more leverage than investments in pyramids and ponzi schemes.