As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two 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

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Thursday, 15 March 2012

Opportunity and Outcome??? (2)

Read? Opportunity and Outcome???

Read? Investing Made Simple by Uncle8888 (33)

Read? Method, Mind and Money


Investing model


Once we understand the investing model we will know that having money at hand for crisis investing is not enough. Our money at hand is just our fuel as supply to the Input. During deep economic crisis, it is likely that our own likelihood may be threatened. Can our investing mind still be in calm and steady state to seize opportunity for larger risk-reward?

Who do you bet to be the one who is calm and steady in his investing mind?

The man who is debt-free or the man who is still servicing his mortgage loan and fear of losing his job?



4 comments:

  1. The debt free man will be more steady and calm in his investing mind. The one servicing the loans will be pre-occupied with the thoughts of avoiding mistakes (as he cannot afford to make any).

    ReplyDelete
  2. The debt free man is definately steady and calm. Provided he is prepare to set a side of opportunty fund or else he will lose the golden opportunity to increase his wealth during crisis.

    On the other hand, the man with outstanding debt can mitigate his 'fe√°r' by having set a side 9~12 month debt payment . He can then invest 'peacefully' during the crisis period.

    Ray168

    ReplyDelete
  3. When a man borrows money from the bank for "anything", whose money is he using? It is actually his own future money(earnings). So most of the time servicing the debts will make him poorer into the future, not richer.If you can be almost debt free for all your life, i think you will have a very bright future. Because all your money/wealth is working for you and not the banks or somebody else. Believe me it works if you are able to be almost debt free all your life. Of course some choose the "leverage ways". Wish you all the best.
    Cheers!

    ReplyDelete
  4. Money to be invested is risk capital. Unless you are watching your portfolio every minute that the market is open, be prepared to lose everything, in the worst case of a black swan event. One good example is Japanese stock market, the highest is 40k, and now it is around 10k, roughly 25% of its peak.

    Once the risk capital is borrowed, the borrower determined that he cant afford to lose it, and the market must rise, his mind just seek ways to validate it, such as seeking positive news when the stock price drops, or booze to forget about it, or psycho-ing himself to be patient, lol.

    ReplyDelete

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