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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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 8 July 2018

Compounding Investment Return Pornography???


Read? Coping with Financial Pornography from Millennial Deci-Millionaires.


Hmm ... learnt something from the above link!












This compounding investment return pornography illustration diagram on how to become rich from investment often shown by many investment writers?

No periodic dips in investment portfolio value across market cycles?

Not pornographic? Then what!

Never confuse compounding interests - 8th Wonder of the World with compounding investment return!







5 comments:

  1. Yeah ... There's this inconvenient thing called sequence of returns risk...

    Annualised return over 20 years from point A to point B is 7% p.a.

    But inside got -50%, +40%, -20%, +15% etc. Hoho...

    Investment Moats has something quite relevant...

    Compounding requires absorbing damage so you're never forced to quit

    I think too many people don't focus enough on how to "absorb damage" 😉

    Spur😃

    ReplyDelete
    Replies
    1. In addition of absorbing the damage; one should have the mean to recover and rebound strongly too

      Delete
  2. Keep a lookout for Temasek FY annual reporting next few days. :)

    Seems like a +9% performance from 1/4/17 to 31/3/18.

    $275B to $300B

    But how much from capital gains + dividends .... how much from injections?

    Gotta wait for the details LOL.

    ReplyDelete
  3. Can my HP 73 shares from 198x to now count?

    That is from 73 shares spin off to another 6 companies.

    There is a story about investing in S & P 500 for 20 years or more who only buys regularly and DRIP.

    So when he need to withdraw even in a >30% crashed market say the 25th year, will he still make money?

    Off hand, i think he should still O. K.

    ReplyDelete

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