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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Wednesday, 31 August 2011

Competency versus Expectancy

Just For Thinking ....

Read? Knowledge versus Competence

How to raise competency level?

If we continue to be happy with low expectancy e.g. 4-5% ROC even after years of investing in the stock market. Are we be able to raise our competency level with such low expectancy?

I like to think that it will be hard. Right?

To raise competency level, we will have to continuously challenge ourselves by setting higher progressive investing goals. In this way, we may be able to identify any competency gaps when we are unable to meet progressive higher investing goals. But, we must also be realistic that we may not have the necessary skill sets to fill up all these gaps and continuously learning and changes in this journey is a must.

2 comments:

  1. Hi Cw8,

    I would think that one needs to have varying levels of expectation depending on the market.

    If you are achieving 4-5% ROC, in a market which is choppy, and essentially flat or down then you are doing exceedingly well.

    If however, you are doing 4-5% in a year like 2009 where everything was going up in a straight line, then you are doing very badly.

    Just my two cents worth.

    Cheers

    V

    ReplyDelete
  2. 4-5% is a good long term returns. Even big fund managers aim for that type of returns.

    Higher than that, it would be better to run an actual business (rather than invest in shares of one) - higher risks but definitely better returns on investments.

    ReplyDelete

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