Worengco – your unwavering companion on the journey of transformation.
At Worengco, our purpose is to empower enterprises, both budding and established, to realize their fullest potential through revolutionary technology and digital prowess. We present an encompassing array of solutions meticulously tailored to surmount the hurdles of the digital era. From comprehensive financial and operational assistance to pioneering the frontiers of innovation, we stand by your side.
Our executive team of accomplished experts is resolute in steering your business towards a smart building renaissance, furnishing you with the instrumental resources requisite for triumph in the digital cosmos. Whether your venture represents the traditional order embracing the new wave, or you’re an ambitious entrepreneur on the cusp of unveiling your visions, Worengco beckons – ready to make your aspirations tangible.
Why procrastinate? Seize the moment to unlock your business’s latent potential alongside Worengco. Engage with us today and embark on a voyage to discover how we can catalyze your success!
Our Management Principles
Our key principles are owner-related business principles, and the following:
1. That they have entrusted their funds to the company and should be treated as co-venturers.
2. In line with this Owner-orientation, Directors should invest a significant portion of their net worth in the company to align their interests with shareholders. This will ensure that the company’s success or financial suffering is shared proportionally with the shareholders, as the directors’ net worth will also be impacted. This aligns with the owner-oriented approach and ensures that the directors are invested in the company’s success.
3. The company’s long-term goal is to increase the intrinsic value of the business on a per-share basis, focusing on earning-per-share as the primary measure of economic performance. The economic significance or performance should be measured by per-share progress, and the aim should be to maximize the average annual rate of gain in intrinsic business value on a per-share basis.
4. Use technology to optimize value and maintain a competitive advantage. Adopt and effectively implement the latest technologies to increase efficiency, reduce costs, and improve our products and services, with the goal of consistently outperforming competitors and driving long-term success.
5. The company’s preference is to reach its goal of increasing intrinsic value on a per-share basis through direct ownership of a diversified group of businesses that generate cash and consistently earn above-average returns on capital.
6. If this is not possible, the company may choose to own parts of similar businesses, primarily through purchases of marketable common stocks by insurance subsidiaries. The allocation of capital in any given year will depend on the price and availability of businesses and the need for insurance capital.
7. It is important to report the earnings of each major business controlled, as these numbers are significant and generally aid in making judgments. However, consolidated reported earnings may not accurately reflect the true economic performance due to the company’s two-pronged approach to business ownership and the limitations of conventional accounting.
8. Therefore, the company regularly reports “look-through” earnings, which include reported operating earnings, excluding capital gains and purchase-accounting adjustments, plus a share of the undistributed earnings of major investees.
9. Operating or capital-allocation decisions should not be influenced by accounting consequences.
10. The company aims to use debt sparingly and structure borrowed loans on a long-term fixed-rate basis in order to be conservative and avoid over-leveraging the balance sheet.
11. Deferred tax liabilities do not accrue interest, and as long as the company can break even in insurance underwriting, the cost of the float developed from that operation will be zero.
12. The company should not fill a managerial “wish list” at the expense of shareholders. It should not diversify by purchasing entire businesses at controlled prices that ignore long-term economic consequences to the shareholders. Acquisitions should be able to raise the per-share intrinsic value of the company’s stock.
13. The company should periodically assess whether retention, over time, delivers at least $1 of market value for each $1 retained to shareholders. If the company determines that it can’t create extra value by retaining earnings, it can pay them out and allow shareholders to deploy the funds.
14. The company should issue common stock only when it receives as much in business value as it gives. This rule applies to all forms of issuance, including mergers, public stock offerings, stock-for-debt swaps, stock options, and convertible securities. The company should not sell small portions of the company, as issuing shares is equivalent to selling assets on a basis that is inconsistent with the value of the entire enterprise. Managements that suggest or imply during a public offering that their stock is undervalued are usually dishonest or unfair to existing shareholders. Owners would be treated unfairly if their managers deliberately sold assets worth $1 for 80 cents.
15. The company should not engage in the practice of simply discarding businesses that are not performing up to expectations, like discarding cards in a game of gin rummy. Instead, it should focus on finding ways to improve the performance of these businesses and bring them up to par. Great caution should be taken with suggestions that poor businesses can be restored to satisfactory profitability through major capital expenditures or closing, if they are doomed to run never-ending operating losses.
16. The company should be candid in its reporting to shareholders and emphasize the key points vital for appraising business value. The CEO who misleads others in public may eventually mislead himself in private. The company should apply specific standards of accuracy, balance, and incisiveness when reporting to shareholders. The annual report should provide as much value-defining information as possible within a reasonable length. The goal is to update all shareholders at the same time and not give any single shareholder an advantage.
17. Despite the policy of candor, the company should only discuss activities in marketable securities to the extent legally required. Like the good product or business acquisition ideas, good investment ideas are rare, valuable, and subject to competitive appropriation. The company can freely discuss business and investment philosophy and pass along intellectual generosity, even if it may create new and capable investment competitors for the company. “AN ADDED PRINCIPLE – STOCK PRICE AT A FAIR LEVEL THAN A HIGH LEVEL.”
18. The Company would prefer for shareholders to experience a gain or loss in market value during their period of ownership that is proportional to the gain or loss in per-share intrinsic value recorded by the company during that period. The Company would like for shareholders to see their investment in the company increase or decrease in value at a rate that is consistent with the Company’s own performance. If the company is doing well and its intrinsic value is increasing, the company would like for shareholders to see their investment in the company also increase in value. If the company’s intrinsic value is decreasing, the company would like for shareholders to see their investment in the company to be decreasing in value. This aligns with the interests of the company and its shareholders, as both are working towards the same goal of increasing the intrinsic value of the company.