I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


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

Thursday 12 November 2015

Concentration Risk??? May Look Like One!!!


Someone quoted to Uncle8888 last night that she saw one blogger was doing well by taking concentration risks. She is thinking of taking that approach to average down on one stock - potentially good prospect.


What your favorite bloggers may not have say it loudly?

The highest weight-age in their current portfolio stock may look like having concentration risk at recent snap shot view.

Do you think that Uncle8888's Kep Corp is about 18% of his current total stock investment cost is a concentration risk?



So what is risk?

Read? Getting good returns without too much risk???

Risk is about permanent loss of our capital . Right?

In this case, the whole current Kep Corp position holding is FOC!

Not a single cent of his investing capital in it.

Now, where is the risk by the definition of the current World's Greatest Investor of our times?

He don't have risk; but he will have his greatest REGRET of not making more hays while Sun shines. Sianz!




















 



 


3 comments:

  1. Hi bro8888,

    I think some people have to learn the lessons about averaging down themselves. I'll never do that again, not without looking at my total allocation for my portfolio for that particular stock!

    ReplyDelete
  2. Unfortunately human beings don't think in absolute dollars. We think in relative dollars and behave as if not all dollars are created equal. By assigning relative values to different moneys we run the risk of being too quick to spend, too slow to save, or too conservative when we invest—all of which can cost us in the short or long run.
    But then all money is really the same!

    ReplyDelete
  3. Agreed! We invest to increase our wealth.

    Hence the capital gain is our wealth, not FOC money.

    ReplyDelete

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