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.

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Value Investing
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Technical Analysis and Charting
Stock Tips

Sunday, 16 October 2011

Investing vs Trading (4) - Two great attributes of long-term investors


Read? Investing vs Trading (3) - Here the Hard Truth from me!

Two great attributes of long-term investor

What are they?

Super in FA? 

Super in both FA and TA?

One grand Master Guru from Hong Kong in the investment world has been holding some stocks (one of them is HSBC) for more than 20 years and collecting stock dividends from them. During the past and current market bears, he can still sleep well at nights. Why?

He uses simple strategy for buying, holding and selling for his favorite stocks (Createwealth8888: probably blue chips)

During market crisis, he would buy enough of his favorite stocks and stop buying more when he has enough of them and then wait for the bull market to come and sell enough of them to recover his capital. In this way, he keeps his "FREE" stocks in the market to receive stock dividends.

Grand Master Guru called them "FREE" stocks and Createwealth8888 called them "Pillow Stocks".

What did Grand Master Guru tell us?

Patience and Gut

The two great attributes of long-term investors for cash flow.

Patience to wait for big bears to come and GUT to put in enough capital to buy enough of them so that they will have enough to do partial divestment to recover the initial investment cost and make the leftover stocks FREE. Simply, repeat the whole process again at each market bear and market bull to accumulate more of them to generate more cash flow.

Many of us may have Patience but Gut may be lacking in us so it is very hard for us to put in large capital relatively to our account size to buy enough during market crisis; and then hold enough winning stocks for cash flow over decades. 20 years? OMG!


1 comment:

  1. Hi,
    Repeating Bear/Bull cycle investing is possible for some people. But holding for 20 years is another difficult form of kunfu, because you can't resist selling when your profit is more than 1 time not to mention 2 times. You need more practice of Chi Kong & experience to do this. Ha! Ha! i am still a student lay. Very difficult.

    ReplyDelete

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