Showing posts with label Facebook. Show all posts
Showing posts with label Facebook. Show all posts

Friday, August 17, 2012

Financial IQ: Forget Apple, Forget Facebook: Here's The One Company That Actually Terrifies Google

Image representing Amazon as depicted in Crunc...Image via CrunchBase
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Interesting to see how the competing tech firms are keeping a watchful eye on each other.


It's very easy to get caught up in the Android versus iPhone duel and Google's recruiting battles with its newly-public Silicon Valley neighbor, Facebook.

But neither one of those companies worry Google executives as much as another that is actively taking money out of their pockets.

This company is from Washington, but no, it's not Microsoft.

Google's real rival, and real competition to watch over the next few years is Amazon.

Google is a search company, but the searches that it actually makes money from are the searches people do before they are about to buy something online. These commercial searches make up about 20 percent of total Google searches. Those searches are where the ads are.

What Googlers worry about in private is a growing trend among consumers to skip Google altogether, and to just go ahead and search for the product they would like to buy on Amazon.com, or, on mobile in an Amazon app. 

There's data to prove this trend is real. According to ComScore, Amazon search queries are up 73 percent in the last year. But it makes intuitive sense doesn't it?

Why go through these steps …

Google search "rubber galoshes,"
Analyze some text links,
Click on one to go to a product page on some e-commerce store,
Click to add the item to your cart,
Input your credit card,
Input your address,

… when you can just …
Search amazon for "rubber galoshes,"
Click one button to buy the product with your usual credit card and have it shipped to your normal address.

On mobile, where Amazon has its own app and Google is just a search bar for a smaller-screened browser, the equation tips further in Amazon's balance.

The scenario gets even scarier for Google if Kindle phones and Kindle tablets gain ubiquity.

If you have a Kindle phone, which comes with free movies and books because you have an Amazon Prime account, which also gives you free shipping, why in the WORLD would you ever search to buy something through anything but Amazon?

You wouldn't.

That's why Amazon is practically giving its hardware away.

It's also why Amazon scares Google more than anything Facebook or Apple are up to.


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Friday, August 3, 2012

Financial IQ: Financial show

Easy Money (TV series)Easy Money (TV series) (Photo credit: Wikipedia)
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This new TV show sounds a good match to anyone who wants to improve their financial education.


ANC is empowering Filipinos to become better managers of their personal finances with its newest daily program On The Money. 


Premiering tomorrow, July 30, at 3:30 p.m., On The Money will be packed with segments that explain saving and investment concepts, demystify money myths and simple, easy-to-use tips and tricks on how viewers can get more bang for their buck. Every episode will also feature the best and most credible finance experts, professional money managers and life coaches in the country, who will sit in to provide pieces of advice and answer viewer questions.


On The Money will air from Mondays to Fridays at 3:30 p.m. and 6:30 p.m. and will be anchored by entrepreneur and marketing guru Edric Mendoza; financial planner and former business reporter and columnist Salve Duplito; and broadcast journalist Melissa Gecolea.


Edric, the program’s main anchor, is passionate about teaching people the responsibility of spending on the right things and busting bad shopping habits. An advocate of homeschooling, Edric said he feels very excited to do his first TV show because it is in line with his passion for transforming families.


“I’m thrilled about this show because of what it can do for its viewers. If Filipinos manage their money properly, we will have better fathers, better mothers and even better children,” said Edric, who is also a marketing lecturer and has 10 years of corporate experience across research, project development, sales and brand management in several multinational companies in the country.


He also believes the key to financial well-being is disposing of what he calls the entitlement mentality, which he said makes people believe they deserve to get things they cannot afford. Edric revealed that he was once a victim of — but has since recovered from — such mindset, which got him into debt and almost made him bankrupt.


“We are in a culture and environment where wherever we go, everything says ‘buy me.’ We need to have a mindset change because a large part of why people have money problems is their idea of entitlement that makes them think they owe it to themselves to buy things,” Edric said.


On The Money, meanwhile, will also bank on Salve’s years of experience as a multi-awarded business journalist, personal finance advocate and financial planner through her segment Salve Says, in which she will be busting money myths, teaching finance basics, and guide viewers through and out of their financial mess.


“There is a great need for financial literacy in this country. My job is to translate these concepts into real doable actions, and tell the story of those who have blundered and those who have succeeded, so that ordinary people will know what to do with their finances,” she said.


On The Money will also serve as a TV homecoming to Melissa who will facilitate the show’s social media segment by monitoring questions and comments from viewers via Facebook and Twitter and field them to the program’s resource persons.


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Friday, July 20, 2012

Financial IQ: Facebook Mark Zuckerberg's Loan Gives New Meaning to the 1%

Mark Zuckerberg, founder and CEO of FacebookMark Zuckerberg, founder and CEO of Facebook (Photo credit: Wikipedia)
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Mark Zuckerberg got an excellent loan at 1% interest for the first year.  Wealthy persons like Zuckerberg gets great rates because banks compete against one another to get their businesses.


Billionaire Mark Zuckerberg is giving new meaning to the term "the one percent."


The Facebook Inc. (FB) founder refinanced a $5.95 million mortgage on his Palo Alto, California, home with a 30-year adjustable-rate loan starting at 1.05 percent, according to public records for the property.


While almost all lending rates have reached historical lows this year, the borrowing costs available to high-net-worth individuals are even lower if the person is willing to bear the risk of monthly interest rate adjustments, said Greg McBride, senior financial analyst with Bankrate Inc., a North Palm Beach, Florida-based firm that tracks interest rates. Large increases are unlikely anytime soon with the Federal Reserve signaling it will keep interest rates near zero for at least two years.


"When you can borrow at a rate below inflation, you're borrowing for free," McBride said in an e-mail. "This is the concept of using other people's money and it preserves financial flexibility for the borrower." 


"The one percent" is a phrase popularized last year by the Occupy Wall Street movement to protest growing U.S. income inequality. The top one percent of Americans earns a fifth of the country's income and controls more than a third of its wealth, according to Joseph E. Stiglitz, a Nobel Prize-winning economist, whose book "The Price of Inequality," was published last month.


The average rate on a one-year adjustable mortgage was 2.69 percent on July 12, up from a record low 2.68 percent a week earlier, according to Freddie Mac, the McLean, Virginia-based mortgage-finance company. The average rate for a 30-year fixed loan fell to a record low 3.56 percent on July 12. Freddie Mac doesn't survey rates for loans that adjust monthly.


Zuckerberg, 28, is the world's 40th wealthiest person, with a net worth of $15.7 billion, according to the Bloomberg Billionaires Index. His company went public in a $16 billion initial public offering in May. The shares were down 19 percent since trading began as of July 13.


Facebook spokesman Larry Yu declined to comment on Zuckerberg's mortgage.


"We're not going to get into the personal finances of executives," he said in an e-mail.


The Palo Alto house cost $7 million in March of last year, purchased in the name of a limited liability company, according to a deed filed with the Santa Clara County Clerk-Recorder.


Zuckerberg's address was published by Palo Alto Online and Burbed.com, a Silicon Valley real estate blog. Three neighbors reached by phone at their homes said Zuckerberg lives at the address. They asked that their names not be used because of concerns for their privacy.


The five-bedroom, 5-1/2-bath house was built in 1903 on a 9,011 square-foot (837 square-meter) lot, according to Redfin Corp. The two-floor white wood-sided home is ensconced behind a gated drive and a wall of groomed shrubbery, about three miles (4.8 kilometers) from Stanford University and three miles from Facebook's Menlo Park headquarters. Zuckerberg was married to Priscilla Chan in the backyard on May 19.


Homes in Zuckerberg's ZIP code, 94301, sold for a median $1.875 million, or $968 a square foot, in June, up 1.7 percent from a year earlier, according to Redfin. Google Inc. co-founder Larry Page owns a home in 94301 and the late Apple Inc. founder Steve Jobs also lived there.


"There was a huge run up before the Facebook IPO and it cooled off after the Facebook fizzle," Ken DeLeon, a Palo Alto real estate broker, said about local home prices.


First Republic Bank (FRC), which provided Zuckerberg's mortgage, doesn't comment on specific loans or clients, said Greg Berardi, a spokesman for the San Francisco-based company.


"First Republic, like most banks, prices its credit products based on the strength and totality of the entire client relationship," he said in an e-mailed statement. "This is our approach with all of our clients."


The bank's high-net-worth customers include Stephen Ross, the chairman of developer Related Cos.; Peter Thiel, the chairman of hedge fund Clarium Capital LLC and an early Facebook investor; and former New York Police Chief William Bratton, the current chairman of Kroll Inc., according to First Republic's website.


Wealthy individuals who have a lot of business with a bank may be eligible for the best rates, said Rob Kricena, a regional managing director at Wells Fargo Private Bank, which has technology entrepreneurs as clients in the San Francisco Bay area.


"In our experience the majority of high-net-worth individuals do have a mortgage," he said. In many cases, they can get favorable terms because of their wealth.


Zuckerberg's 30-year mortgage started with an initial rate in May of 1.05 percent, which also is the minimum rate for the loan, according to a document filed with the Santa Clara County Clerk-Recorder's Office. It adjusts each month starting in June with interest payments calculated as the London Interbank Offered Rate, or Libor, plus 0.8 percentage point. The maximum rate cannot exceed 9.95 percent.


Monthly principal and interest mortgage payments on the $5.95 million loan would start at $19,275.





Zuckerberg's latest mortgage replaces an adjustable-rate loan from Morgan Stanley (MS) recorded in June 2011 that started with a 1.75 percent rate, which would've had a monthly payment of $21,256. Zuckerberg got the loan at the same time Morgan Stanley was seeking to lead manage Facebook's initial public offering, which it won earlier this year.


Christine Pollak, a spokeswoman for New York-based Morgan Stanley, declined to comment.


The mortgages were signed by Tom Van Loben Sels, a partner at Apercen Partners LLC, a Palo Alto tax consulting firm for high net worth clients. Van Loben Sels didn't reply to a phone message seeking comment.


Banks like to provide home loans to high-net-worth clients because they can pay off the loan quickly, if needed, and are better credit risks, said Sandi Bragar, director of planning at San Francisco wealth manager Aspiriant. Her firm recommends variable, interest-only loans in many cases because of the tax deductibility of mortgage-debt payments and the adjustable rate, which places the rate risk on the borrower and generally makes the loan cheaper, she said.


Wealthy individuals often choose to finance a home purchase rather than pay cash because of the overall low cost of mortgage debt and the additional access to liquidity, Kricena said. In many cases, they invest excess cash that they would have used to purchase the home into higher-yielding assets, he said.


"Even if someone would be able to pay off that mortgage with cash or other assets, they don't want to tie up their holdings in real estate because they may have access to other types of more attractive investments," he said.


Still, in the current environment of tight underwriting, it can be difficult to navigate the process for even the wealthiest borrowers, Bragar said in a phone interview.


"Getting a mortgage these days is very tricky even for the wealthiest," she said. "They are by no means exempt."


DeLeon, the Palo Alto real estate broker, said adjustable rates below 2 percent have become common for high-net-worth borrowers. He has handled about 65 sales worth $120 million this year in the area.


"I have a 1.8 percent rate and I'm not too special," he said in a telephone interview. "A lot of my tech clients are doing it. Those rates exist for clients who don't need a mortgage. I tell them to enjoy the free money and pay it off when the rates spike up."


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Monday, January 24, 2011

Financial IQ: Used Car Selling Safety Tips

Toyota Innova, found in Amphoe Hang Dong, Chia...Image via Wikipedia
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There are a lot of good deals in buying used cars.  You can get as much as 30% savings when buying a 12-months used car, instead of buying a brand new one.


One of my favorite ways to dispose of vehicles is to sell them after only a few years of use, so that I can use the money to buy a new vehicle. The front-page news in recent weeks on grizzly murders of used car traders is shocking to people like me now planning to sell my Innova and Revo vans in order to buy new vehicles.


Here are some used car trading tips:


• When contacted by buyers by phone or through the Internet, always make the effort to get their address or their telephone numbers that you can call back and verify to see whether they are who they claim they are. Checking their names on Facebook or other social sites would be helpful.


• When meeting them at your house, always get some people to witness the meeting. Although having their faces captured on a CCTV camera is ideal — if you have one — getting someone to photograph them secretly during the meeting would do no harm (It is your house anyway). While doing so would make you look paranoid, it is better to be paranoid than dead. While they are inspecting the car, you can take pictures of them, doing so by explaining that you are just taking picture of a car you hate to miss.


• When they want to do a test drive, insist that they leave government identification cards like driver’s license, SSS, PhilHealth, gun license and other cards that cannot be faked. If they come by car, insist they leave it behind and check if it is really registered under their name and not a stolen one. If they come by two, ask one of them to stay in your place.


• The test drive should only be done within your subdivision or places you are familiar with. These must be places where people abound. Watch out if there are vehicles following you. Always do the test drive at daytime. Meeting them at night or outside your home is out of the question except if you are acquainted with them.


• If you really must meet them outside your house, do so in a place you know has CCTV cameras and have a companion in a back-up car take their pictures (if the glasses of your backup car is tinted). Always bring a back-up car to tag you along during the test drive and make them aware you are bringing one. Again, this is a paranoid act, but better paranoid than sorry.


• Lastly, in these dangerous times and if you have a choice, sell your cars to friends and acquaintances or through referrals from them; and not to total strangers to lessen the exposure and risk. We always tell clients that in the used car business, it is the trust that matters more than the cars.



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Sunday, October 10, 2010

Financial IQ: Lessons from Facebook

Cover of "The Accidental Billionaires: Th...Cover via Amazon
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Two thumbs up to Zuckerberg, the founder of Facebook!!


Instead of indicating that you “like,” will “accept” and “friend” the Hollywood film The Social Network, I urge you to turn off your Facebook and your computer, go to the cinema and watch this surprisingly excellent, well-crafted, funny, witty and immensely entertaining movie about the enigmatic founder of Facebook Mark Zuckerberg.


Congratulations to actor Jesse Eisenberg who convincingly and hauntingly plays Mark Zuckerberg (both are Jewish in heritage), talented director David Fincher and scriptwriter Aaron Sorkin (who based the story on the book The Accidental Billionaires authored by Ben Mezrich). I bet a hundred pizzas they will win Oscar Awards next year!


By the way, the 26-year-old Zuckerberg is now the world’s youngest billionaire with a net worth of US$6.9 billion. He also announced a $100 million donation to an educational charity on Oprah Winfrey’s TV show, just before the release of this unflattering and uncensored though not derogatory film on how he created Facebook and changed the world. 


Here are some life lessons I learned from this movie:


• People yearn for true friendships. Our modern frantically-wired world of high-tech instant communications and the biggest social networking site Facebook with over half a billion members show us that all of us human beings, deep down in our hearts, need friends. We humans need to be connected to others or to somehow belong to a group or community.


Ironically, Zuckerberg, the founder of Facebook, is depicted in this film as having only one real friend: investor, business partner and later litigant Eduardo Saverin. Zuckerberg is intellectually smart but socially inept. He has just been dumped by a girlfriend, so he furiously creates a social networking site called Facematch, then Facebook, partly it seems to become popular with girls, to be more accepted in the Harvard campus where his nerdiness excludes him from the social elite. 


• Dream big and think long-term. This saga of computer programming whiz Mark Zuckerberg dreaming big is ideal for all of us to emulate. While his schoolmate and business partner Eduardo Saverin keeps impatiently nagging him to get advertisers and cash in on their fast-growing yet still fledging Facebook, Zuckerberg wisely resists because he is aiming bigger. Zuckerberg and his next business partner Sean Parker (played by singer Justin Timberlake) were proven right — it’s better to catch a huge marlin in the long-term instead of just 14 small trouts now!


• Ideas change the world. It is not true that there’s no more room in the world for another Albert Einstein, Thomas Edison or Bill Gates. Innovation and new ideas continuously bring out new global icons like Zuckerberg because of sheer creativity, with the phenomenon Facebook co-created by him just in 2004 in his Harvard dorm room.


• Invest wisely. Instead of us or overseas Filipino workers investing their earnings in houses, cars or karaoke systems first, invest in your kids’ education or in your own self-improvement for the best future returns. Invest also in income-generating assets. Our politicos should also lessen wasting taxpayers’ money on more waiting sheds, basketball courts or municipal halls, and instead invest wisely in more public schools or health clinics, raise the salaries of all teachers public or private and don’t cut the budget for state schools like University of the Philippines!


• Be “cool.” This writer was struck by Mark Zuckerberg’s statement that Facebook’s biggest asset was its being “cool,” thus he didn’t seek pop-up advertising. Even now, with ads, Facebook is still cool because it primarily serves the purpose of social networking. What he meant by “cool” is being perceived by others as credible. Let us maintain and enhance our credibility as individuals, as institutions, even as leaders or government officials. Indeed, be cool.


• Be kind to all, never underestimate anyone. Be kind to every person, especially those without friends in school, in the office or in your neighborhood, the loners or the problematic. Be kind not because he or she might become unexpectedly a future success like the campus nerds Bill Gates or Mark Zuckerberg, but because it is the civilized and Christian way to live.


• Was it the ancient Chinese strategist Sun Tzu and/or the classic Godfather film which said “Keep your friends close but your enemies closer?” The film The Social Network shows how Zuckerberg, a socially unpopular Jewish nerd, was able to outsmart the WASP elite twin brothers and Harvard senior students Cameron Winklevoss and Tyler Winklevoss, who struggled with their own Harvard Connection social network site project.


• Have passion! Throughout the film, one can see that many great achievers like Zuckerberg were not just after big bucks; nor was it just wanting to have girls to date. He had passion, believed in what he was and what he is still doing. Why would Zuckerberg stay up until the wee hours of the morning, programming code on his laptop while his colleagues were out partying? Why do Cebu Pacific Air taipan John Gokongwei, Jr. at age 84 and with billions of pesos in wealth, or SM founder Henry Sy with the biggest malls or world’s richest investor Warren Buffet still work so hard? Why do the best artists, musicians and writers spend hours painting, sculpting, composing and writing nonstop in what psychologists describe as the “flow” phenomenon wherein one loses the sense of time and space? Isn’t it all ultimately because of sheer passion?


• No matter who we are or become, don’t be an a-hole! Among the intriguing aspects of the Mark Zuckerberg persona portrayed in the film — which isn’t a completely accurate biopic but also not total fiction — is that he is never shown to smile or sincerely tell his associates or his few friends the all-important words, “Thank you.”       


Zuckerberg is incredibly smart, driven, hardworking, wily and eventually successful, yet his weaknesses, as shown in this movie at least, his often being too self-centered and lacking a balanced life. His remarkable success and personal pathos should be a reminder to those among us who may have forgotten the correct priorities in life. I strongly believe that to be a better, humane and truly successful person, we need to balance career and any quest for success with love of God, family and friends — real-life friends and not just Facebook friends!



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