As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Sunday, 1 November 2009

Portfolio Management - Measuring Success

It is easy to measure your financial success in the stock market. You either measure it simply by calculating its Annualized ROC or simplified CAGR method. It is always the financial returns over your investing time units that really counts. Don't you want to be a better investor or you feel good that you are investing your money. That is a world of difference!

Investing can be very frustrating because hard work and long hours of detailed analysis may not necessarily result in good returns. In the stock market, it is not necessary be direct correlation between effort and returns. Unlike in your paid job, the harder you work, your bosses may see it and recognize your effort and may decide to compensate you with higher pay rise and better bonus than your peers. You may even progress faster in the corporate ladder. But, it is not the same for the stock market because stocks and companies do not know you and don't even know that you exist!

The solution is to simply be cognizant of the way the stock market works and to acknowledge that hard work with long hours of detailed analysis may not always result in better returns. But, it may offer you good consolations if you failed in meeting your investment goals. Then you may say to yourself: "Well, I have put in all my heart and effort into my investment. I have failed and I quit!"

I realize that those super investors who reap super returns from the market are those who watch the market with keen eyes and the market becomes part of them, and have the greatest guts to step up to the plates while many others are desperately getting out at all costs. See thesundaytimes, Nov 1, 2009 on invest
  • me and money - veteran investor Gabriel Yap
  • small changes - Wee Cho Yaw
Ultimately, it is helpful to set higher investment goals so that we can constantly learn and review our strategies to meet those goals. Remember what Alexander said:

“When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” - Alexander Graham Bell

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