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

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

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Value Investing
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Wednesday, 24 January 2018

"Leveraged" Yield???


This is so sexy!

Open margin trading account and for risk management you can cap it to 30% to 40% leverage and there you go. You pay back your brokers or bankers interests due and pocket the net return after interests. You now achieve leverage yield on your OWN capital. Leveraged ROC! Shiok!

Do it well. You can give a Talk to show people how to do leverage yield on some "high" quality and higher yield stocks e.g. S-REITs.

Once upon a time there was man who kept boasting about his leveraged yield on his bond investing in the famous cbox and made the rest of us not doing leveraged bond investing looked stupid. 

Hmm .. leveraged yield on own capital through margin trading account by borrowing some money through brokers or bankers.

"Leveraged" yield without margin trading account possible?

Hmm ... okay. Technically; it is white or  black mice theory!

Uncle8888 also achieves "leveraged yield" in different way by:

1. Return OF Capital : 100%

2. ROC : 174% (23 Jan 2018)

3. Estimated "leveraged" yield in 2018 : 5.7%

Uncle8888 leverages from OPM's money in stock market. Like that. Can right?

So many of us are in fact; leveraging?










6 comments:

  1. CW,

    LOL!

    You really typical kiasu Singaporean!

    Other people have, you also want to have also!


    To the extent of "inventing" your own definition again ;)


    Want to copy?

    Don't copy nouns; copy adjectives.

    Profitable, money making, successful, consistent; etc.

    Now that's sexy!


    Another way is to count in money ;)

    My leveraged yield 8%!!! How much in money? $50,000!

    Your unlevered yield only 2%? So sad... Oh! Idiot! In money its $200,000!!!

    Who's your daddy now?

    Ha ha!


    ReplyDelete
  2. Hoho ... before a person takes risk ... should answer whether there is a need, ability, & willingness.

    If any 1 of the above 3 is a "no" then shouldn't take the risk.

    Uncle8888 ... surely there is no need for you to leverage lah, kekeke!

    The basic questions also apply to other risky endeavours & also plain vanilla investing in common ETFs or investment-grade bonds.

    That's why for many people who are in professions with above average incomes, they don't see the necessity (need) to invest traditionally in stocks & have no inclination (willingness) to bother reading or learning about it (ability).

    Just normal prudent savings can allow them more than enough retirement savings, and if they want to preserve their wealth for future generations, they rather go into properties which may be easier for them to understand & that can appreciate by inflation rate in a mature economy.

    Those more adventurous will rather leverage on their profession expertise & open a business.

    ReplyDelete
    Replies
    1. CW,

      Your reader Spur power or what!?

      I couldn't have said it better myself ;)


      Delete
    2. Huh ... no lah ... this was something I read during the dot.com bust days ... before SARS.

      Didn't appreciate it myself until after 2008-2009 LOL!!

      From anecdotal observations of friends, family & colleagues over past 16 years, most people tend to overestimate their "ability" and "willingness" especially during bull times ... oh they're willing all right ... until they start experiencing pain & bad stuff!! Hohoho!!

      And bull runs are at their strongest in the final 2 years of a cyclical trend! ;)

      Problem is no one can foretell whether we're in the last 2 yrs or not ... beginning? middle? ending?? Are we there yet?? Kekeke!!

      Prepare ... prepare ... prepare!!

      Delete

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