Page 7 - LM Confidential Issue December 2014

Philippines
Personal finance lessons from Shoemart owner Henry Sy
MANILA – There is no better model of a successful self-made billionaire than the richest man in the Philippines, mall magnate Henry Sy Sr. of the
SM Group.
Sy, who is turning 90 this year, has an estimated net worth of $12.7 billion, according to Forbes Magazine.
Financial adviser Salve Duplito said that while there are many things that entrepreneurs can learn from Sy, there are four lessons that are worth noting if you’re interested in creating the mindset of a billionaire:
Taking intelligent risks
Sy opened his first shoe store in 1972, the year martial law
was declared.
In 1984, inflation was at 47 percent, interest rates at 45 percent, and
GDP at negative 7.3 percent. The next year, Sy reacted by opening his first shopping mall
From 1997 to 2002 during the Asian financial crisis, the SM Group put up seven supermarkets, one SaveMore in 1998, and two more malls in the next two years.
“Risks do not faze Henry Sy. But take note that the major risks he took are in areas of his competence,” Duplito said on ANC’s “On The Money.”
“In personal finance, knowledge and experience reduces risks, whether you’re talking about investing financial instruments, in a new business, in a new career—learn first. And when you have learned all you can, then plunge fearlessly,” she added.
Start a business
Duplito said that entrepreneurship is a key to wealth if you’re prepared to shed blood, sweat, tears, and work long hours.
Sy’s major investments are focused on retail, banking and property.
The SM Group has two major banks in BDO and Chinabank as well as 48 malls in the Philippines, 5 malls in china, 21 residential projects and 7 office buildings, 4 hotels, and 3 SMX convention centers.
“A word of caution if you’re a Henry Sy wannabe and want to get into entrepreneurship: if you’re going into battle, don’t forget your ammunition. Save money for your emergency fund, sufficient capital,and never finance it with debt,”said Duplito.
Plan your estate
Sy has been successful not only in growing his business, he has also trained and taught his children well in running the operations of the business.
While he has yet to choose a successor, Sy’s children are all competent and successful in their
respective fields.
Abhor waste and put a premium on savings
Duplito said another lesson that can be learned from Sy is how to save.
She cited a quoted from Sy’s daughter Teresita Sy-Coson, who said, “Abhor waste and put a premium on savings because of the need to be prepared for all contingencies in business, politics, and personal life.”
“It’s important to enjoy life but most people seem to forget is that enjoying life does not only happen when you spend money. If you put your mind to it, there’s a way to live a full life without having to spend beyond your means,” Duplito added.
She also reminded parents to raise their children in such a way that if you lose your job tomorrow as well as all your assets, you and your kids will still be at the top of the world.
“Wealth does not happen by accident, Henry Sy’s life proves that,” she said.
DECEMBER 2014 L. M. Confidential
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