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!


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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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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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