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.

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

Friday, 21 September 2012

How to become rich in stocks??? (13)

Read? How to become rich in stocks??? (12)


Active Trading or Long-term Investing?

Superior return for long-term investing always assume successful re-investing of dividends.

Can we always assume that we can successfully re-invest our accumulated dividends over the years?

Uncle8888 has decided to spend some time to investigate it.

 
Is this assumption of re-investing dividend possible in real life investing for retail investors like Uncle8888?


Lucky, Uncle8888 has one real-life example to share in the cyberworld.

His Kep Corp!










Uncle8888 has three positions in Kep Corp.

18 Sep 2001: $1.32
26 Mar 2004: $3.22
20 Jul 2007: $12.14 <--- Sinful one!!! Waiting to repent!!!


Pyramid UP 


Total dividends collected from 18 Sep 2001 to 26 Mar 2004 was enough to re-invest the dividend as second position in Kep Corp at $3.22 in 26 Mar 2004.


Total dividends collected from 1st and 2nd position from 26 Mar 2004 to 20 Jul 2007 was enough to re-invest the dividend as 3rd position in Kep Corp at $12.14 in 20 Jul 2007


As of yesterday market closing share of Kep Corp at $11.29


Total Return = Total Dividends collected + Capital Appreciation at yesterday market closing price of Kep Corp at $11.29

= 1,657% over 11 years of long-term investing with dividends re-invested.


Right and Hold is King!!!










6 comments:

  1. you cannot always use either sembcorp and keppel as an example. the sample size is too small.across a vast number of stocks listed the chances of investors being wrong in the long term is much higher.

    ReplyDelete
  2. Go to any Value Investing seminar preview. What do we hear from Gurus?

    It is either Coca Cola or MacDonald. Right?

    And people are paying $X,XXX to hear the rest of the Story. :-)

    ReplyDelete
    Replies
    1. One swallow does not make a summer. To be realistic, u sud demonstrate with yr full portfolio, not just one of yr best buy. Reinvesting with divs implies buy and buy. I prefer rebalancing my portfolio periodically.

      Delete
  3. Great article.. I see that some companies offer a "dividend reinvestment" plan. These plans take money earned through the dividend disbursement and purchase additional shares or partial shares of the company for the investor.

    best dividend stocks Singapore

    ReplyDelete
  4. So far probably only 1 true value investing workshop, doesn't use coca cola or macsdonald, or information that can be easily found in books.

    It actually teaches sound, real life and practical examples.

    It also doesn't charge the $XXXX dollars.

    It also teaches you the 3rd element of IH or BB, not just FA and TA.

    ReplyDelete
    Replies
    1. Hi SweeChye,

      Is it Wealth Direction? Care to share. Thanks.

      Delete

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