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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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

Monday, 31 January 2011

Compound Interest is not the same as Compound Returns (3)

Read? Compound Interest is not the same as Compound Returns (2)

Read? 3M's - Inside Investor's Mind

Optimism Bias: Believing that you are above average and that misfortunes are more likely to befall others

Seriously, how many average retail investors fully understand the big difference between 2.6% Compound Interests payable on HDB housing loan and Compound Returns on stock investment.

To be able to beat that 2.6% Compound Interests payable on HDB housing loan with Compound Returns on stock investment will require you to stay fully re-invested most of the time across several stock market cycles of bulls and bears. This low figure of 2.6% may look relatively small enough and it may make you to believe it is quite easy to beat it, Right?

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