Read old posting on? What is Long-Term Investing?
"If you are near the Temple of Cows and keep hearing a bunch of cowboys chanting the Sutra of Milk, soon you will become religious." - Createwealth8888
Understand your own investing goals and know where you are now?
In our investing journey, there will be two distinct investing paths - Growth and Income.
The Growth path is for us to build up wealth and the Income path is for us to preserve wealth so it is very important for us to know where we are now and choose the right strategy to meet the investing goals.
For retail investors, our age can be our friend or our foe. When we are nearer to 50s or 60s and realize that we are not nearer to the last investing goal post then it is already too late to do anything.
The growth path can be tough and full of risks as it can even make or break you. Most of us may have little choice but to travel this difficult path to build up our wealth using the magic of compounding and to find the potential multi-baggers. A few multi-baggers in your portfolio could just mean that your future kids University education fund may be already secured if you choose to liquidate it and move the money to risk-free Fixed Deposits.
However, there will be some retail investors who are born lucky as they may have Bank of Papa or Bank of Mama behind them to support or provide them so they may just need to travel a shorter growth path or not at all. Travelling on the income path is of course much easier as the market is never short of low hanging high yield income bearing stocks.
"Rich or rich-and-old cowboys can sip Milk, sing song and tell Cocks and Bulls stories; but young and poor cowboys are better off hunting for more wild bulls and cows as you are not there yet." - Createwealth8888