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

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

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Tuesday, 24 March 2015

Uncle Chua's School of Long-term Investing??? (2)


Read? Uncle Chua's School of Long-term Investing???


Did late Uncle Chua, an illiterate taught us something that we don't often read it from books or heard it from our investing seminar Gurus?


In mid-1997, when Asian Financial crisis started sweeping across regional markets like hurricane destroying every single object in its path, Uncle Chua started calling his broker more often than usual to enquire about stocks prices. Contrary to most of my clients, who began panicking and dumping their shares to preserve what they had left, he did not sell a single share. Instead, he started buying blue chips only. He bought bit by bit as the STI broke one low after another.

Uncle Chua's portfolio consisted of nothing else but blue chips stocks only!I asked him about his philosophy of selecting good stocks. How did he pick those blue chips? Uncle Chua, explained: " I bought some of them as early as in the 60s. I was then in my 50s and retired.I reckoned that I neeeded to have some sort of passive income and so I made a simple comparison between bank fixed deposits and stock dividends. I decided that latter offered a better return, and so based on this very simple reasoning, I looked for companies which consistently paid good dividends is naturally a profitable company,management team of the companies that value shareholder interests and entering market with equanimity and grasping opportunities to buy good and resilient stocks at " super discounts" where only , the contrarians, dare to do so. 


Uncle Chua passed away at the age of 85 in the year 2000.This is true story, but rare, example of a successful investor whose winning strategy was simple, direct, clear-cut,straightforward and hassle free.


Is this the clue behind his success during AFC?

He bought bit by bit as the STI broke one low after another.

His large War Chest that enabled him to keep on buying during AFC?


In investing, Your Account Size Really Matters?





 

2 comments:

  1. Hi CW,

    I like true story from blogger on people or story near us. It's always more inspiring!

    I agree with Uncle Chua theory! It's an easy theory. But what seems easy is always too hard to comprehend.. :-)

    ReplyDelete
  2. It is difficult to practise in reality because human beings are hyperactive.

    Possessing immense patience to hold for decades is rare gem!

    Ideal scenario - Cheaper (Stocks), Better (Dividends), FASTER (Profits)! lol!

    ReplyDelete

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