As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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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Sunday, 20 December 2009

Is Investing In Real-world Business Safer Than Stocks? - Part 3

http://createwealth8888.blogspot.com/2009/10/is-investing-in-real-world-business_17.html

Not surprising, 40% of the stalls are empty in Hougang Plaza Foodcourt, probably due to its new nasty neighbour - 24x7 air-con Kang Kar Food Court offering a 10% discount with Kopithiam card. How can old foodcourt compete when both food courts are selling almost the same kind of foods.

The only other stall at another coffeshop that biz is still so good is the Western food where new food court doesn't have one. No direct competitor.

From the perspective of pure financial return from investment dollars, I think investing in a real life small retail business can be more risky than investing in stocks.

When the real life retail business tumbles, the biz owner has to pump in more cash into the biz to keep it on going and end up with negative cash-flow; or else have to close shop.

This is somewhat similar to Margin, CFD or any other leverage trading, when the Market tumbles, the traders will be asked to top up the margin or the maintenance; or otherwise will be forced sell by the brokers.

For investing in stocks, when the stock prices tumble, investors don't need to put in more cash other than watching with horrors.

Do you still think that investing in stocks is more risky than investing in real life small retail business?

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