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 13 June 2010

Three Little Pigs In The Stock Market - Part 3

We often hear this:

"Bull makes money. Bear makes money. Pig got killed!"

The story of  the 4th Little Pig who got killed was not widely told.

Bull is greedy to make money. Bear is greedy to make money. But Pig is even more greedy and always trying harder to make even more money.

Pig doesn't born on its own. Pig is a transformation from a Bull or Bear. When a Bull or a Bear becomes overly greedy and wants to make even more money; it transforms to a Pig when the overly greedy Bull or Bear begins to lose even more money.

Who is the 4th Little Pig?

The Piggy Couple or the Piggy Family

The Couple (Husband and Wife) and The Family (Father, Mother, and Children) all jump into the same investment product or stock because one of them believes he or she is a savvy investor and becomes a babe magnet to other family members.

A Pig is born when they begin to lose money and the whole family begins to suffer and everyone in the family looks at each other and wondering who else in the family is safe.

The Piggy Good Value

The stock price plunges further and dividend yield surges up. It has become even more attractive and the investor keeps averaging down and has little or no concerns of portfolio being over-exposed to this stock. The truth is Bear Market may seldom last very long but for individual stock it can remain low for years or even decades through the next Bull or Bear cycles. Don't ever mistaken the past dividends as how your future passive incomes will be like.

When the stock price plunges even further and now more money is lost and  the Good Value Bull has transformed into a Piggy Good Value. 

Cow becomes Pig

It is great to leverage and make even more money than one using only his or her limited resources.

Why does leverage work? 

At its heart, you are borrowing someone’s assets and reaping the benefits. It’s like borrowing a cow and selling the milk! What a great idea!

Don't worry. I have a great and carefully thought of plan. It will works! Nobody would like to stop and believe that Murphy Law and Black Swan will happen to them. These will happen to others but not me!

It’s great until the cow runs off. Now you’re stuck — you owe a cow and don’t have one to return. The risk of leverage is investing that debt and losing what you borrowed, which can wipe out any profits. This is when a Cow turns into a Pig.

So there is some truth in the common hearing:

"Bull makes money. Bear makes money. Pig got killed!"

So it doesn't matter if you are a bull or a bear but don't ever transform yourself into a Pig!


  1. Hi, Creatwealth8888,
    Of all the financial blogs, I love your blog best. It's full of wisdom in financial matters especially for us lowly educated layman. I read your blog over and over again.
    I also don't have any bond holdings and use CPF as a kind of Bond. Now I am alredy 63+ and I using CPF as a place to park my "cushion money" and as Bond Holding. Especially now, CPF as Bond Holding is really 'great'.
    Thank you very much for your writings

  2. Hi Lawrence, I too must thank you for repeated visits and hope to share more of my own financial and investing experiences with those with smaller account size.


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