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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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

Sunday, 3 December 2017

Diversify Your Investment Risks Through ETFs or Investment Portfolio Management???


Are ETFs the only way to diversify your investment risks as sold by ETF's snake oil?


Hmm .... 

Risks and Return on Capital.

Risks come loss of permanent capital. Volatility is not yet risk when we have adequate level of war chest to participate in market volatility AND we DON'T REALLY DEPEND on our investment portfolio asset draw - down to partially fund our annual household expenses.   

Focus on our portfolio management; we too can achieve that same effect of diversification of investment risks; not through Method i.e. by holding big number of stocks but Money Management.

Cap any potential losers but let the current winners generate cash flow and that becomes our ROC. Our own capital doesn't even need to be fully invested to generate this yield. 

How much can ETF yield for our invested capital? 

5% , 6% or 7%?

Uncle8888's portfolio management may generate conservatively at 5.7% for 2018 and he still has large fire power to fight market correction or the next Bear. 









2 comments:

  1. "Tell me where I'm going to die, so I won't go there" Charlie Munger.

    ... promised 18% return per year is a scam tell-tale sign.

    ReplyDelete
    Replies
    1. Rayng,

      Its just a joke har!

      I think I better don't stand next to you in the toilet...

      But if during range shooting, everyone of us would welcome you to shoot beside us ;)

      LOL!

      Delete

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