As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Tuesday, 3 October 2017

Yield Focus Or Return On Invested Capital Focus???







After 17 years with this pile of records and his performance review indicated that he should be better off at return on invested capital focus camp for the next market cycle!

BTW, so far majority of personal financial investment bloggers in Singapore are in Yield focus camp. 

New dash board!

Including paper profits lost back to Mr. Market will remind him the execution of market timing is also critical.



11 comments:

  1. CW,

    Finally!

    Prevention is better than cure ;)

    No headache; no need for panadols.

    Then dividends become icing on the cake :)

    Sugar!




    ReplyDelete
    Replies
    1. Dilemma of young investors with low six digits account size which path they should take to reach that level of seven digits account size and then shout loud to the cyber world and social media friends: Did you see my six digits passive income?

      Passive income is like MacD up size if we like to eat more!

      Delete
  2. Some wise crack had said if you missed the best few days of a bull market you might not make much money, but if you managed to escape the bear trap you should do better then missing the few good days of a bull market.

    Have anyone tested the saying?

    ReplyDelete
    Replies
    1. Miss the best 10 days or miss the big bears? Something to mull about...

      http://3p5bnx3przb73659la2iupn2.wpengine.netdna-cdn.com/wp-content/uploads/2016/05/SSRN-id1908469.pdf

      Oh ... Happy Mid-Autumn festival! 😜

      Delete
    2. Most analysts, unfortunately, stop here and throw up their hands. They proclaim buy and hold to be the only way to ensure being in the market for these best days. Because these events are so rare, and they have such as massive impact, there is infinitesimally small chance of predicting when they will occur and therefore the effort is useless. They take the ball all the way down to the five yard line but stop there.

      What are they missing?

      THE HUMAN ELEMENT

      Markets are a collection of humans, and being human, a collection of human emotions. Greed, fear, jealousy, pride, and envy all manifest themselves to the fullest in capital markets.
      When you are making money you are thinking about the new car you are going to buy, how smart
      you are (and how much smarter you are than your neighbor), the vacation you are going to take, and the (2nd, 3rd, 4th) house you are going to buy. The part of the brain that is firing nonstop here is the same region that gets stimulated by cocaine or morphine.

      However, when you are losing money you are probably not opening your account statements, you
      are thinking about how dumb you are (and how stupid you were to listen to your neighbor), how you are going to pay for that second house, and you likely feel significant revulsion to even thinking about investing. The brain processes portfolio losses in the same region that is stimulated by the flight response.

      Delete
    3. 1. The stock market historically has gone up about two-thirds of the time.

      2. All of the stock market return occurs when the market is already uptrending.

      3. The volatility is much higher when the market is declining.

      4. Most of the best and worst days occur when the market is already declining. Reason: see #3.Markets are much riskier than models assuming normal distributions predict.

      5. The reason markets are more volatile when declining is because investors use a different part of their brain making money than when losing money.

      Delete
    4. From the appendix:-
      Singapore stocks from 1966 - 2008:

      Buy & hold annualized return: 7.83% p.a.

      Buy & hold only when above 200-day MA: 19.20% p.a.

      Of course if you're gifted as Warren Buffett you can identify 4-5 stocks, buy & hold them thru a few major recessions & still achieve 50% p.a. returns ... Hahaha!!!

      Delete
  3. Yield or ROI?

    i very greedy.

    That's why i don't have 2 or 3 baggers to show lol.

    ReplyDelete
    Replies
    1. Anyone knows somebody really hold on to stocks since 1987?

      Interesting to know their outsize return on invested capital. For Malaysia Boleh; read in the newspapers that there are a few millionaire RM early retail shareholders of Public Bank

      Delete
    2. No need to look further, ME loh!

      Alas my is HP of 73 shares since 1985 because i had worked there.

      If only i had been working in IBM or Microsoft then i would have been a millionaire by these shares alone.

      From 73 of HPQ, it spinned off = HPE, Agilent, DXC, KEYSIGHT + ONLY IN SEPT, MICRO FOCUS.

      SO IF I HAVE BEEN BUYING ONLY SPY 500 (ONLY BUY NEVER SELL)FROM 1985 TILL NOW WITH DIVIDEND RE-INVESTED, I THINK I WILL BE A MILLIONAIRE TOO.

      BET FOR 30 YEARS ALSO MUST BET THE RIGHT HORSE.

      SO IT IS MUCH EASIER TO BET ON 500 HORSES INSTEAD OF ONE.

      AGAIN THIS REMIND ME OF SPUR.

      DON'T FORGET I LOST ON FX US TO SING.

      Delete
  4. Forget, there was one more HP spin off called "Verigy" in Singapore.

    But Hp had closed or ? and my shares were returned to as cash.

    Very little only.

    Not that i am complaining, if i can hold all these for another 30 years (i mean left behind for someone to hold, if he doesn't need to sell, then there is still a chance to see in million $. - Dream On)

    Because all these are technology companies which can disappear or BOOM!

    ReplyDelete

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