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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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.

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Value Investing
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Friday, 4 September 2015

Property or Stocks???


When we understand where we are coming from and understand that our property is not stronger than the Economy. 

Don't ever be mistaken about it!

How Ant thinks?

Ant follows plan and got formula somemore!

Wealth = Asset Value + Cash Flow


For property, it is true that your asset value will never go down to zero; but our cash flow may go down to zero when the rental market is soften and we can't find tenants.

Uncle8888's annual company off-site event is a good time to catch up with those veteran investors on their views on investment and their progress and development on retirement planning.

Currently, two veterans (old timer property investor) are unable to find tenant for their investment property. One is three months and the other one is 9 months. Their cash flow is zero now and for how long more?

For stocks; it true that single stock(s) may drop to zero; that is why Portfolio Management is a must for us to survive across market cycles so that our portfolio will drop big but never drop to zero. If our well diversified portfolio drop to zero;  we will have other bigger thing to worry than our investment.

Cash flow from a well-diversified stock portfolio will not drop to zero as Economy can't drop to zero.

There is no free lunch in the market - stocks or property. It is like ..

Read? You still want to play equities in your 80s?

Rolf's comment :

I spoke to one of my ex bosses and asked why he always say stocks is a waste of time. This is bcos for 30 yrs he only break even or earn so little in his stock investments.

Yet, he had countless of properties all over Sg and Msia collecting rents which I always reckon he think property is a better investments.

In his 60s now, he said to me this year, it's not about whether stock or property which is better. Both are only as good as urself.

End of the day, it is all about what suit u the best! Even for all his pragmatism and success in work or business ventures, he was easily influenced by the swing in stock markets. So it does not suit him.

While in property, he just feel so comfortable.

Eventually it's knowing urself and wat that suits u. It's the same as finding a partner, although this is much more tricky...




 



6 comments:

  1. uncle

    sometime no choice la. eg don't have downpayment for private housing, not qualified to find private housing( SPR) etc..

    like this, how?

    ReplyDelete
  2. Hi Bro CW,

    I think when one gets near his retirement age, its important to hold bigger cash portion, or liquid assets that can be sold off without big loss, e.g. Singapore Savings Bond. This will help to tie over the period of market downturn, when investment income, or cash flow goes down.

    What do you think?

    ReplyDelete
    Replies
    1. SSB is good enough as contingency tap to supplement our falling investment income short during poor economical or market cycles. Some cash in our wealth management is worth rotting not as our war chest :-)

      Delete
  3. CW,

    Good you bring up BOTH sides of the story by quoting Rolf's example.

    And in the past you have brought up examples of your relatives and person you know that played equities until they want to chop fingers...

    I guess the adjective matters more than the noun.

    Successful, profitable, money-making, etc.

    No point shouting you are an investor or trader; whether you chosen vehicle is equities, property, forex, futures, etc - when the adjective in front is "money losing"...

    :(

    ReplyDelete

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