The rich get richer...

I DON'T hold it against them though, although I do understand why there are a number who feel an intense amount of jealousy and envy towards the former's good fortune.

But many of the rich folk in the Forbes list of the Philippines' 40 richest, started virtually from nothing and just had the good sense to make terrific investments in business, the stock market and the like. After having been a business writer for most of my career, I've seen how the rich folk are and how they are wired differently from the rest of us mortals. They take risks, sometimes huge risks, w/c may sometimes mean gigantic failures, but also, when these risks pay off, they pay off very, very handsomely.

Being educated in the best schools is an asset, for sure, and having the right connections, but I think more than anything, it is really having the instinct and the guts for a profitable business deal. (One Chinese businessman also once told me, luck also has a lot to do it. Some are just born with the stars all properly aligned in their favor. Ah well...)

Of course, there are those who just inherited their wealth, but it also takes a lot of cunning to keep that wealth. God knows how many scions of rich folk have squandered their inheritances just because they made bad decisions in their personal lives and in business. What I've noticed though is that more and more of these scions have wizened up, and are some of the most hardworking CEOs I know. The era of the lazy bum rich kids are no more; many of them choose to work even if their trust funds are guaranteed to support them for the rest of their lives.

(Alphaland Chair Roberto Ongpin photo by Forbes magazine.)

Anyhoo, here's that list of the Philippines' 40 richest, with retail king Henry Sy Sr. still keeping the top spot. Many of those in this list have recorded higher net worths due to the stock market boom, even if the country's economic growth has slowed down in the first quarter of 2011.

A notable entry was ex-Marcos technocrat Roberto "Bobby" Ongpin posting the largest gain in net worth, which he attributes to his Atok Big Wedge investment. Btw, did you hear the story about Ongpin, called RVO by his staff, having been one of the first businessmen to hire Anna Nicole Smith as an assistant when he was still living/working in the States? O di ba? ;p (He is actually a goodlooking old dude, no?)

(Edgar Sia II, founder of Mang Inasal, photo by Phil. Star)
A noteworthy new entrant to the Forbes list is Edgar Sia II, who also happens to be the youngest on the list at 34 years old. Last year, he sold his Mang Inasal chicken barbecue chain to Tony Tan Caktiong’s Jollibee Foods Corp.

(UPDATE: Oh, as I write this, Reuters has just reported that PBCom has just accepted a takeover bid from Ongpin's ISM Communications.)

The top 10 are:

1. Henry Sy
2. Lucio Tan
3. John Gokongwei Jr.
4. Andrew Tan
5. David Consunji
6. Jaime Zobel de Ayala
7. Enrique Razon Jr.
8. Eduardo Cojuangco Jr.
9. Roberto Ongpin
10. George Ty

The complete list here.

Major hiccup at the stock market

I NEVER thought Ayala Corp. would drop to P200 per share this fast. Parang it was only yesterday that it was selling at P250. But the market crashed today, dropping by 10% which triggered the circuit breakers to halt the trading session. Whew! Then after resuming, the market slipped even further closing at 1,713.83 points. This was the single biggest day drop since July 1987.

Banco de Oro was probably the hardest hit, falling by 23% to P22.75. It had just reported its third-quarter loss because of the covers it allocated to its credit exposure in Lehman Brothers. Belated reaction dontcha think? But actually ever since BDO merged with Equitable, the income of the unibank has been unsteady because of expenses owing to the merger and the expansion of some of its units. So if you think about it, the situation isn't really that bad. The situation was just aggravated by the losses from Lehman's. And tapos na 'yan. The losses are booked. Period.

But the first nine months of the year actually was still profitable for the bank. Check out the press statement here. It was just lower than the same period last year. But Christmas looks promising because I know the BDO consumer lending business has been very strong. Loans were up 35%, deposits too at 32%, and from what I know from my sources, the bank is still in a hiring mode. So in short, there is no reason to worry, especially if you are a BDO depositor. In fact, with the extensive holdings of the Sy family in a diverse array of businesses, we are assured of a steady stream of income from any of the Sy companes. I even once told a friend that the Bangko Sentral can very well fold up, but not BDO. These guys have money. Lots of it.

Okay. Now I'm waiting for Ayala Corp. to fall to P120, then I'm buying. If you've got extra cash kids, check out those stocks. Many of them are already trading at a bargain. I am predicting an upswing after the Nov. 4 elections in the U.S. and Barack Obama is proclaimed the winner. So start looking through the stock market page, but choose wisely.