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. 

Why I DON'T Use Stop-Loss

Read? Why I Use Stop-Loss


Uncle8888 DOESN'T use Stop-loss; but he doesn't lose his pant!

CASH got sound (in his mind)!

Saturday, 10 October 2009

Portfolio Management - Stop Losses?

I do cut losses to recover capital and redeploy the recovered capital to other stocks, but it is not related to the falling stock price. I don't need to win back in the same manner that I have lost.

One day in 2008, a guy came to this cbox and said: "Bro, do you have stop loss and you are holding a losing position for too long!"


I replied: "Bro, I don't use stop loss"


Read? Portfolio Management - Stop Losses?


Read? Articles relating to stop loss


Method, Mind, and Money Management

Stop-loss is nothing more than a technical risk control and money management tool. What if we have really have in our mind this risk control and money management; and we count our money to two decimal place and we know CASH got sound and don't lose our pant!

How to invest in Blue Chips and make money? (2) - Good to Refresh

Saturday, 14 December 2013

Read? How to invest in Blue Chips and make money? (2)

Wednesday, 26 February 2014

Read? Learn from late Uncle Chua???


CreateWealth8888  27 February 2014 at 08:27:00 GMT+8

When to start buying?

One grand old uncle (80+) told me this. The same old uncle who held APB for XX years and lost count of how much money he has made.

When you see both ST and Zaobao showing at the same time large graphical of global market crashes at the front page.

This is the time to start buying slowly.

Ah Peh, you chun bo?


LOL!

ReplyDelete

Portfolio Management - Stop Losses? (2) - Refresh

Uncle if a counter already drop 76% and left 6k

will u decide to leave it there for speculation purpose. if can ride the oil and gas storm, the salty fish may become fresh fish again.

else, all money will be gone.

what will u do?

 

 

CW8888:

 

When it is too late and quite meaningless to cut losses to recover so little. Just write it and move on. This is how commercial or business does it!

 

Just that retail investors don't have the heart to write it off. It is basic accounting principle. Right?

 

Minimum we as retail investors must know this. Right?

 

 

 

Read? Portfolio Management - Stop Losses? (2)

 

 

3M's in Investing.

 

Method. Mind. Money Management.

 

Once we write it off and take the paper loss to make it into book keeping "realized loss"; it will affect our  investment portfolio XIRR or CAGR; but there is No cheating whatsoever. It has been rightful accounted.

 

Write it off and move on!

 

Keep worrying over it as paper losses will suck our energy!

 

 

Are You Ready To Invest Like Uncle Chua???

Received one hearsay email :-)


Uncle

Everybody now keep cash and a lot broker said market will drop.

 

How do u think?

Tuesday, 24 March 2015

Read? Uncle Chua's School of Long-term Investing??? (2)

Portfolio Management and Risk Control - Not All Poisons Kill!

What Uncle8888 knew from his encounters with many other retail investors on their large losses and become extremely difficult to recover from such large losses is that they have been averaging down their losses till no return!

That is very bad portfolio management and risk control!

Uncle8888 as fisherman and no matter how careful he can be; but at some moment of complacency and carelessness he has been stung by sting-ray, catfish and scorpion fish. Luckily, he was not bitten by sea-snake; otherwise, he wouldn't be around to blog!

Not all poisons kill!

Investment Portfolio Diversification : Personal Money Loss Risk vs. Theoritical Market Risk?

Your losses in your investment is PERSONAL so make your portfolio diversification personal too. 

Losing is part of the Game! 

At the end of the day, when our investment portfolio can take several hits of fairly large losses and we still end up WINNING! 

That is DIVERSIFICATION. 

Don't worry too much over theory and concepts. They are good tools for pokes!

Real People. Real Diversification!

Only stocks listed in SGX! 


Not Diversification? THEN WHAT?
 

As of yesterday's market closing stock price ...

No Time To Learn Investing (Analyzing Companies). How???

Read? Uncle Chua's School of Long-term Investing??? (2)


Less Analyzing. More Investing - Createwealth8888

In Investing, your account size really matters - Createwealth8888


No time? 

But, got lots of spare money?


No time but got lots of spare money. OK. You still got some hope!

No time? No money?

Sorry! Can't help much. Fact of life can be cruel!


No time; but got Big War Chest! There is some hope for you.

How come?

Learn from late Uncle Chua.

Now what did you learn from late Uncle Chua?

Uncle Chua's School of Long-term Investing??? (2)

Read? Uncle Chua's School of Long-term Investing???


Did late Uncle Chua, an illiterate taught us something that we don't often read it from books or heard it from our investing seminar Gurus?


In mid-1997, when Asian Financial crisis started sweeping across regional markets like hurricane destroying every single object in its path, Uncle Chua started calling his broker more often than usual to enquire about stocks prices. Contrary to most of my clients, who began panicking and dumping their shares to preserve what they had left, he did not sell a single share. Instead, he started buying blue chips only. He bought bit by bit as the STI broke one low after another.

Uncle Chua's portfolio consisted of nothing else but blue chips stocks only!I asked him about his philosophy of selecting good stocks. How did he pick those blue chips? Uncle Chua, explained: " I bought some of them as early as in the 60s. I was then in my 50s and retired.I reckoned that I neeeded to have some sort of passive income and so I made a simple comparison between bank fixed deposits and stock dividends. I decided that latter offered a better return, and so based on this very simple reasoning, I looked for companies which consistently paid good dividends is naturally a profitable company,management team of the companies that value shareholder interests and entering market with equanimity and grasping opportunities to buy good and resilient stocks at " super discounts" where only , the contrarians, dare to do so. 

Uncle Chua passed away at the age of 85 in the year 2000.This is true story, but rare, example of a successful investor whose winning strategy was simple, direct, clear-cut,straightforward and hassle free.

Is this the clue behind his success during AFC?

He bought bit by bit as the STI broke one low after another.

His large War Chest that enabled him to keep on buying during AFC?


In investing, Your Account Size Really Matters?





 

War Chest Again??? (2)

Read? War Chest Again???


War Chest comes from where?

Some saving from earned income.

Right!!!

Absolutely!!!


But, it tends to be slow and incremental.



Then how?


One of the 3M's in Investing  ....


Money!!!

Your portfolio management is the sure way to re-build your war chest.


Seriously think about it.

Learn from Uncle8888. 

His biggest mistake and regrets in 2009 for NOT taking it seriously in 2007!

He will avoid repeating this mistake for the next Bear.



Read more? Portfolio Management

Uncle Chua's School of Long-term Investing???

Read? Investing Made Simple by Uncle8888 (29)



Do you want to learn Uncle Chua's investing strategies?

Study carefully those stocks in his portfolio?

How did he pick his stocks?


What do you think?

Uncle Chua's Portfolio & Dividend Income : Sheet1	Profit from a REAL-LIFE success story of a retail investor who picked the right stocks.
	Estate of Chua-----DECEASED
	Uncle Chua's Portfolio & Dividend Income
	SCHEDULE OF DIVIDENDS (01/01/2001 - 31/12/2001)
Date of Payment	Name of Company	Warrant No	No. of Shares	Gross Dividend	Tax	Net Dividend
	Singapore Dividends
1/6/2001	Sing Tel		30200	2265	577.58	1687.42
1/26/2001	SPH		33858	16929	4316.9	12612.1
1/26/2001	SPH		33858	27086.4	6907.03	20179.37
1/22/2001	Natsteel Ltd		100000	81879.19	20879.19	61000
3/9/2001	Times Publishing		5000	450	110.25	339.75
3/16/2001	Asia Pacific Breweries		100312	11957.72	2929.64	9028.08
3/20/2001	F&N		92500	11028.87	2702.07	8326.8
4/12/2001	WBL		15300	306	74.97	231.03
4/12/2001	Robinson & Co		18429	1474.32	361.21	1113.11
5/3/2001	SPH		33858	6771.6	1659.04	5112.56
5/3/2001	Straits Trading		26340	790.2	193.6	596.6
5/22/2001	OUB		84720	5930.4	1452.95	4477.45
5/22/2001	OUB		84720	3388.8	830.26	2558.54
5/31/2001	DBS		24176	3868.16	947.7	2920.46
5/31/2001	DBS		24176	3626.4	888.47	2737.93
6/6/2001	Keppel Fels		10000	300	73.5	226.5
6/13/2001	TIBS		300	10.5	2.57	7.93
6/13/2001	OCBC		210000	27300	6688.5	20611.5
6/13/2001	OCBC		210000	21000	5145	15855
6/15/2001	UOB		198030	49507	12129.34	37377.66
6/19/2001	Keppel Capital		56250	3375	826.88	2548.12
6/20/2001	Keppel Corp		11250	1462.5	358.31	1104.19
6/20/2001	United Engineers		26666	1066.64	261.33	805.31
6/29/2001	Sembcorp		14756	363.9	90.35	273.55
7/6/2001	Asia Pacific Breweries		100312	11957.72	2929.64	9028.08
7/9/2001	F&N		92520	11028.87	2702.07	8326.8
7/10/2001	Times Publishing		5000	331.13	81.13	250
7/30/2001	SIA		35000	7000	1715	5285
8/20/2001	OUB		84720	4236	1037.82	3198.18
8/20/2001	OUB		84720	3388.8	830.26	2558.54
8/20/2001	DBS		24176	3384.8	829.24	2555.56
8/24/2001	WBL		15300	459	112.46	346.54
8/31/2001	UOB		198030	29704.5	7277.6	22426.9
9/4/2001	OCBC		210000	10500	2572.5	7927.5
9/26/2001	Sing Tel		30200	1661	406.95	1254.05