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.

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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 14 February 2016

Have Multi-baggers Sure Huat???

 
Hmm... so how many out of how many bought turned out to be multi-baggers? Just curious.
 
 
Okay. This is a simple question and the simple answer is 3.
 
But, on deeper thought, it is not the exactly right answer to this simple question. Why?
 
The stock market is cyclic so our multi-baggers are likely to be cyclic too.
 
See for yourself! What do you think after seeing them?
 


 
 
 
So, to really made real good money from the cyclic stock market we will require more than having multi-baggers. We will need to have higher yield when holding these multi-bagger over long run to compensate us for such holding.
 
See this table. What did you see?
 
 
 
 
 
 
 
 
Once we understand that the stock market is cyclic so will be our multi-baggers. We will need to profit from this cyclic nature of the stock market, we will need to do something that true retail value investors will hate to do; but non value investor like Uncle8888 will have no problem doing it. LOL!
 
Rounds after Rounds: Sell and Buy back!
 
 
 
 
 
With the three elements of capital appreciation, dividends, and realized gains, we should be able to ride and make real good money from future cyclic market.
 
Get the right answer to this simple question?
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 

2 comments:

  1. sell and buy back. easy to say hard to do. most buy and hold people are buy and buy, not knowing the holding is of the money not the stock.

    ReplyDelete
  2. Yes, got it!
    The thing is most investors would find it hard to fish the bottom and reap the top. Most trade in the middle.

    ReplyDelete

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