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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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

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Friday, 25 March 2016

Time, Effort and Knowledge Doesn't Really Make Us Successful Retail Investors???


Real People. Real Story!

He started in his 40 with a sizeable investing capital in 2006, after more than 10 years of reading many books on investing, reading tons of analysts reports, doing TA and FA, reading blogs, forums and including frequent visits to CW8888 blog, etc.

He did all he could to improve his investment portfolio performance; but he is still sitting on net loss of more than 60% in his investment portfolio.

What went wrong?


Is investing somehow unique unlike other life skills, activities or sports, where we can improve ourselves over time if we put in more time, effort and determination to learn?

So how?





12 comments:

  1. Too many moving parts in investing?

    So it is really difficult to master this investing skill?

    ReplyDelete
    Replies
    1. CW,

      Investing is not unique.

      1) It's about right fit.

      If we put a square peg into a round hole, even after 10 years, it will not fit...

      Not everyone is suited for investing.

      Just like some Chinese are monolingual or have an England bias - no amount of "forcing" or "incentive" will make them competent or like Mandarin.

      Similarly, not everyone can be in sales and marketing even though we all know that's where the money is - profit centre is more fun than cost centre.


      2) Sometimes its about the vehicle.

      A competent property investor may suck at equities and vice versa.

      Even in trading, some are just better at trading forex or commodities than equities. Can't explain. It's just so.


      3) Self awareness

      Investing to achieve is not the same as investing to escape.

      If its to "escape", there are lots of other paths other than investing.

      a) Marry rich (now that's leveraging on Other People's Money! OPM)

      b) Discover spirituality (Unless its prosperity gospel; do we need more money to be at peace with ourselves?)

      c) Fall in love. Need not be marriage kind. Fall in love with nature, with politics, and other social causes that makes you feel alive. There is purpose in your life.

      d) You fill in the rest.

      Cannot be the only purpose we are here is to accumulate more never ending money?

      Delete
    2. How to convince anyone that investing is not for them?

      Either they will continue losing and learning or they chop fingers and become great savers.

      Delete
    3. Perhaps it's not necessarily for others to convince him bcos the problem is inherent in him and no one can help him except himself.

      A stubborn person can be a soft and nice guy, but is one that fail to see thru within himself and fail to accept facts and step back to learn, change and improve! Somemore it's already so many years. it's been moulded and all set.

      It's about the understanding of what you are good at and FOCUS on what you are good at, to build the cutting edge! Track records provides feedback!

      Yes, the right fit as Jared mentioned! I am adding one more factor "Failure to evolve!"

      Delete
    4. "Either they will continue losing and learning or they chop fingers and become great savers."

      the first case is sad. the second case is sadder if "great savers" means savers of only 30% of income.

      Delete
  2. Reading is overrated in this particular example.
    Perhaps Critical questioning, self measurement and self reflection may be more appropriate for this one example.

    一日三省

    If still cannot, go back to cpf, averaging world fund sg fund, ssbs, insurance participating funds. Don't even touch corporate bonds and reits.

    He will be happier that way.

    Not all brains are born for all things.

    There can be a genius baller or genius painter but somehow cannot pick up investing properly.

    Us trying to get them to do well could be doing them a disservice.

    ReplyDelete
  3. There are so many investing styles and strategies, one can read a lot about them but not necessarily be versed in any of them or be suited to deploy them.
    Just wondering... What has he done / done wrong to "improve on his portfolio"? Did it actually improve eg. from 70% loss become 60%?

    ReplyDelete
    Replies
    1. Like SMOL said we don't invest to breakeven.

      Delete
  4. This is so vague
    What did he buy?
    If he bought index fund, he would at least perform with the index
    So what is the issue?

    ReplyDelete
  5. i have 2 relatives who are NUS qualified accountants who are so afraid of investing in the stock market.
    And one more who is a scholar picked by GIC to work in Europe and US. She specialised in "private equity".
    Err... what's that?
    No, no she doesn't invest her money in equity.

    And fools or fool like me dares to invest for life from the age of 40.
    Maybe still can't see why "Fools rush in where angels fear to thread".
    That's must be me lah - one of the fools who rushes in.
    Amen.

    ReplyDelete
    Replies
    1. is it a case of a chef who doesn't eat his own cooking during this spare time?
      or is it a case of an inspector in a slaughterhouse who witnesses so much carnage, he turned vegan?

      Delete
    2. temperament,

      Our strength as "bo-tak-cheh" is we don't know what cannot be done! Like Youth!

      Your highly qualified relatives KNOW the risks involved ;)

      Delete

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