I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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.

Think Investing as Tug of War - Read more? Click and scroll down



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

Friday, 31 July 2009

Investing in Property or Stocks - Revisit

Given that you only have enough capital for just one type of investment, will you invest in Property or Stocks? I have been asking this question again and again as I want to seek a better option to invest my limited capital to create wealth for my retirement fund. I am sure you too asking this question.

Size of Investing Capital

Even if you only have smaller investing capital, you can easily without using any leverage to start investing in stock market; but, unlike investing in property market, you will need a fairly larger capital, and use certain degree of leverage to get started.

You may wish to read earlier posts on leverage:

http://createwealth8888.blogspot.com/search?q=leverage


Quick Entry and Exit

For stock market, you can be very short term or very long term or not so short term and not so long term. You may even to be out within minutes, if you manage to get a good return on it.

Unlike the property market, where you have to go through a lengthy procedure of acquiring a property and then again go through another lengthy procedure when you want to sell it off.

Ease of transctions

Given the power of the Internet, you can easily sit in the comfort of your own home or secretly in the office, and be able to invest in stock market. You only just need to click a few buttons on your brokerage portal and transaction is completed. You can never click a few buttons to complete your property transaction, can you?

For stock market, you can literally start a new transaction every trading day.


Affordable Mistakes

I always remembered my Finance Professor once told me this: "For property investment, if you got it at the wrong Property market cycle, you are going to work many, many hours of labour for free". You have to get it right and there is little room for you to learn from repetitive mistakes.

But, for stock market, you can afford to make repetitive mistakes and still be alright, and hopefully you learn enough to be a smart investor.

Power of Compounding

http://createwealth8888.blogspot.com/2009/07/best-secret-in-investment-and-trading.html

Yes. You can let the Magic of Compounding works for you in stock market. Not sure as a small investor can you really able to flip property for compounding effect?

Oh. It is going to be a long story to tell and if you may wish to continue the rest of story on Property stuff in your pleasure reading ...

http://createwealth8888.blogspot.com/search/label/Education%20-%20Property

My final answer is:

For limited capital and without resorting to leverage, investing in the stock market is a better option to get reasonable good returns. Hmm ... some of you disagree. Cheers!
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