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.

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, 13 November 2015

Wealth Formula : Balancing Act!!! (2)


 Read? Wealth Formula : Balancing Act!!!

Our wealth will be measured at all times in both absolute and relative term. It is extremely difficult to escape from this measurement. In fact, no way to escape. How about becoming a sage living in high mountain?


When in doubt on how to look at our wealth; how about Uncle8888's Wealth Formula:



Wealth = Asset Value + Cash Flow


Our cash flow will be measured in absolute, receive in absolute and real, spend in absolute and real; and save in absolute and real.

But, our Asset Value will be measured at all times in both relative and absolute, and both in imaginary and real! 

What we can control is how we periodically re-balance between absolute and relative value; and between imaginary and real!

We cannot possibly escape from both absolute and relative. Right?

 

 

4 comments:

  1. relative is reality, absolute is just an illusion.

    ReplyDelete
    Replies
    1. Sometimes I just roll-eyes on what you say.

      Trying to smoke us again?

      Just as I was going dismiss what you, I'll suddenly pause, "Wait! There's some truth on what you say!?"

      Lol!

      Delete
  2. Life (everything) on Earth is actually an illusion.
    When you draw your last breath

    ReplyDelete
    Replies
    1. Ya. Walk. Eat. See and Talk while we can do them without illusion; otherwise we may have to do illusion to have them LOL!

      Delete

Related Posts with Thumbnails