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.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
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Sunday 29 January 2012

Passive income ONLY - You can't really get rich with it!

Read? Does Your Account Size Matter? - Part 3

You can't really get rich with it!

When your account size is not extremely large, you can't get rich with passive income ONLY. Passive income from property rentals, stock dividends or bond coupons. However, it may be possible; but it will take decades of doing it right to become rich.

To Get Rich = Getting  more and more Total Return

Total Return = Capital Gain + Passive Income.

Passive income is generated from the "utility" of property, stock or bond. It is an expected form of return from this "utility".

So where does Capital Gain come from?

The Greater Fool theory!

Your capital gain must come from "Greater Fool" in the market who will hand over part of their hard earned money from their jobs to you in the form of speculation. The large Capital Gain in the market must come from many Greater Fools speculating and handing over part of their hard earned money from their jobs slowly to the Better Fools. When more and more Greater Fools start chasing it you can become rich pretty fast.

"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




9 comments:

  1. Hi CW,
    i concur with what you have posted. So it seems those who are "Better Fools" are blood-suckers. And the market is a zero sum game. No?

    ReplyDelete
  2. Have the best of both world. Go for both capital gains and dividends. Winning! ^^

    ReplyDelete
  3. Where there are money to be made and lost, there will always be a Greater Fool Theory :)

    ReplyDelete
  4. Passive income is absolutely the way to go. That means owning low PE, high dividend stocks with a low debt to equity ratio, or else alternative investments that also throw off income. Beats betting on bubbles like linkedin at a PE of 1000!

    ReplyDelete
  5. I like this post!

    But I am biased. I belong to the Growth and Income school. LOL!

    Yes, the market is not our mother.

    ReplyDelete
  6. hi temperament i cannot install MS Money on my windows 7!

    ReplyDelete
    Replies
    1. hi Drizzt,
      MS MONEY have several versions. If you want to install from the net, it will show a 2005 UK version and international version. And this US version USMONEYDLXSunset.
      i have installed all version sucessfully.

      Delete
    2. hi Temperament, when i tried installing it says "corrupted autorun.inf" i downloaded the sunsets from Microsoft directly

      Delete
  7. hi Dritzz,
    Try to install the 2005 UK or international version. Actually there are many other versions. Micro-Soft keep on updating the version until they discontinue this software. It's has become a freeware now.
    i think it's a pity if you are unable to share your opinion of this software. i am sure many bloggers like to hear your opinion.

    i read it somewhere that Micro-Soft discontinued this software and allow it to become a freeware because there are many similar or almost the same freewares you can download from the internet.
    i have tried some but i am so use to MicroSoft Money. After all i have been using it for more than 23 years.
    Cheers!

    ReplyDelete

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