I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Monday 22 August 2011

Investing Made Simple by Uncle8888 (23)

Read? Investing Made Simple by Uncle8888 (22)

Beware of Little Black Swan in your Portfolio


What does Uncle8888 fear most? Bear or Swan?

Uncle8888 fears that Little Black Swan in his portfolio most.

Some people have been asking him when he is going to add more of this stock or more of that stock. No, no, no once he has enough he is not going to add more. Uncle8888 is terribly scare of keeping a Little Black Swan in his portfolio.

Why did Uncle8888 can't keep buying more of the same stock?

Firstly, he is not so smart. Secondly, he doesn't have deep pocket. When you have deep pocket; your mind is calm and can buy whatever and whenever.

Uncle8888 always like to think of risks before profits and that has been his strategy.

When it is uncertain

When he is faced with uncertainty in the stock market; he will choose to diversify. When you diversify you are actually spreading your risks when you get it wrong. But, when you are right; your rewards/returns will be diluted too. 

When more certainty seems to return

When he senses more certainty in the stock market; he will choose to concentrate by trimming those laggards in his portfolio as not all his stocks are expected to recover at the same speed. Some will lead while others will lag.

Diversification across stock and time domain

He will diversify across stock domain by adding more new members into his portfolio and diversify across time domain with his Money Plan. Read? Money Plan

In this way, he will not fear of that Little Black Swan appearing in his portfolio.




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