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?
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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