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

Monday, 14 March 2016

Beware of Self-enhancing transmission bias Among Us - The Investment and Finance Bloggers!


Read? It happened again – Self-enhancing transmission bias


Know the difference between accumulating $1M Investment Portfolio to generate passive income and building up $1M Investment Portfolio with XX% CAGR.

Knowing this CAGR number and the size of investment portfolio will tell us the true story in the world of investment i.e. Return on Human Asset vs. Financial Assets - The Absolute and Real Contributor of our wealth.

Don't get it wrong right at the initial phase of our working life.

The return on our human asset is still the solid foundation to the return on our investment portfolio. For the younger ones, don't ever get it wrong!

BTW, Uncle8888's two working children haven't started their stock picking yet. The reason is quite clear. No hurry. Build up their human asset and save well.

It is not an early start that will win the race. It is starting right with the reasonable amount of resources at the right time that will help them to win the race.

Human Asset vs. Financial Assets - No Illusion on Return!






10 comments:

  1. CW,

    LOL!

    I guess the 2 counterbalancing dots in the Tao symbol have just gotten a little bit bigger ;)

    Instead of just parroting the "party line", its nice to see more are beginning to question and think for themselves, "Are you sure?" or "Wu yah bo? (有影吗?)

    :)

    ReplyDelete
    Replies
    1. We need to grow the other Dot bigger to counter the ever growing Dot. When younger ones are not working hard to grow the economy; we older folks are going to be in trouble.

      Delete
  2. At the end of the day's CAGR?

    My Microsoft Money says that it's about 8 to 9 % for 28 years for my stock investment portfolio only.
    So i should be rich by now but i am not.
    i still need to invest in the stock market.
    i must have i/p some rubbish data through the years, lol.
    Hmm.... the actual amount of "money" in my pocket now is more important than my Microsoft Money tracking.
    It can be very accurate but is there "money" in my pocket?
    Have i spend, loan or at least invest it?
    The worst is waste or being scamed it.

    ReplyDelete
    Replies
    1. Configuration tracking error with Microsoft Money?

      8% for 28 years that will put you on par with the World's well-known Gurus performance like . How come you not rich? The missing part is the size of portfolio? :-)

      Knowing this CAGR number and the size of investment portfolio will tell us the true story in the world of investment

      Delete
  3. Lol uncles,

    I got a different answer. Maybe you are already rich by relative standard. To me, 1 million earning passive income is rich.

    To some, passive income = last drawn pay is rich. So ?? 1million earning 6% is 60K which is 5 K per month. Beri power if u ask me, but ask bloggers, they will say not enough ... Blar blar blar

    But keying in some ?? Is possible too.

    ReplyDelete
  4. Hi Uncle CW8888,

    Just curious, so when would you impart some valuable investment skills to your children?

    ReplyDelete
    Replies
    1. They need to accumulate at least $30K of spare money and wait for STI to indicate time to tip top into the market. :-)

      No hurry. Investing is lifetime skill

      Delete
  5. How to measure CAGR if investment capital is increasing together with increasing dividends and increase/decrease in share prices?

    ReplyDelete
  6. Wellput.
    It's really lifetime one.
    The three Ps are very important.
    Look WB is still doing it.
    Trader may take it with a pinch of salt

    ReplyDelete

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