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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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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Sunday 8 January 2012

Understanding the Concept of Demand and Supply

Passive Income - Rental vs Dividend Yield (3)

Understanding the Concept of Demand and Supply

I believe most of us know what is Demand and Supply in Economic theory; but allow me to take it a bit further into passive income.

How do we get paid for passive income?

Read? Saving, Lending and Investing (3)

For interest on saving, coupon on bonds, dividend on stocks, we are in the Demand side; but NOT in the Supply side of getting paid for our capital. We basically demand yield and that is all about it.

However; for rental on properties it is different, we are in the Supply side; but NOT actually in the Demand side of getting paid for our capital. When we supply, people are expecting us to provide some level of basic services to meet their demand (expectations). Some unexpected demand can sometime drive us nuts. Similar to some nasty internal and external customers and bosses at our workplace with their unexpected demand are driving us nuts too.

See the big difference between Supply and Demand of getting paid for passive income. I rather stay in the Demand side.













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