Nett worth survived Aug 07 major correction, and now back to the previous high. Important lessons learnt as follows:
1) NEVER, NEVER touch profits. Re-invest these profits back into the market and let the magic of compounding works its wonder.
2) When the market dragged down those earlier high performance stocks, it is also time to look hard at our portfolio and sell those laggards, hit the bullet, take realized losses, and use the recovered capital to buy into those fallen stars and then wait for market recovery. This strategy worked well in both Feb 07 and Aug 07 crashes.
Now, I firmly believe the power of compounding by never withdrawing any profit. The sharp correction in Aug 07 has lesser impact on the overall value of the portfolio compared to the correction in Feb 07.
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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