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

Sunday, 7 February 2010

Protecting Our Portfolio From The Next Bear - Revisit

Market Truism: Every Bear market is followed by a Bull Market, and every Bull market is followed by the Next Bear market.

Protecting Our Portfolio From The Next Bear

Portfolio Management - Diversification Is Your Friend.

http://createwealth8888.blogspot.com/2009/10/portfolio-management-passive-income.html

"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill

Let look at the results:
 
As on last Friday closing @ 2684, STI has lost -8.5% of its value from its recent high @ 2934 while my portfolio value has lost -4.1%.
 
What really help?
 
Diversification Is Your Friend

It is true again. It helps in my own portfolio management. Not all of them are down at the same speed with the market.

Dividends

Periodic collection of stock dividends is another important factor to provide cushion against falling portfolio value in a bear market. Where Does The Money In The Stock Market Come From?
 
Real wealth is generated from stock dividends so don't forget to collect them when you can.
 
Realized Profits
 
Portfolio Management - The Importance Of Realized Profit
 
Re-investing Dividends and Realized Profit
 
It will be easier to accumulate sufficient fund using both dividends and realized profit to diversify into other counters and sectors.
 
Three Musketeers
 
Together dividends, realized profit and diversification are The Three Musketeers to fight the Bear.





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