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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Thursday, 2 February 2012

Why it is easier to become rich from property and not stocks? (2)

Read? Why it is easier to become rich from property and not stocks?

Act of Partial Divestment in stocks

In properties, you can't do partial divestment but you are comforted by the monthly cash flow from rentals and it helps to keep you in good spirit and wait for the right moment to come. You can wait for real long time for it to come.

But, in stocks, the ease of partial divestment and many right moments seem to come more often than expected and it will induce you to sell to comfort your soul. This very Act of Partial Divestment may be stopping many of us in becoming rich in stocks.

Ask Peter Lim.

How did he become Billioniare? Did he sell his stake in Wilmar when it was 2-3 bagger?

Want to be rich in stocks? Think again. Is this Act sinful in becoming rich in stocks?

6 comments:

  1. CW8888,

    Ha ha! Finally got chance to give you a gentle poke.

    Pray tell what are rounds 1, 2, 3, 4?

    In a skilled hand like yours, partial divestment can be a great source of kopi money!

    Having said that, I must agree that it's my "sitting" that grows my core holdings. My swing trades pay for my "vacations".

    Lucky I got split personality!

    LOL!

    ReplyDelete
  2. I have a problem here. Too much kopi$ and staying wide awake at night and wondering why still not rich?

    ReplyDelete
  3. The real challenge is to know what to keep as core investment multi bagger like Peter Lynch.

    If one ends up with the wrong core, no chance of getting rich.

    Very unlikely that one will have the discipline to keep the right core stock as the temptation is always too high to lock in profits.

    ReplyDelete
  4. For my part, i have decided to keep half of my portfolio as core, whatever profit i make goes into these four stocks.

    Every 'expert' i have told this to has told me that these three are 'punter' stocks and not worth it as long term investment.

    This experiment is going to be for twenty years, i have completed four years so far, once the remaining 16 are over, will update you on this.

    Cheers

    ReplyDelete
  5. In properties, you can’t do partial divestment but you are comforted by the monthly cash flow from rentals and it helps to keep you in good spirit and wait for the right moment to come. You can wait for real long time for it to come.

    But, in stocks, the ease of partial divestment and many right moments seem to come more often than expected and it will induce you to sell to comfort your soul. This very Act of Partial Divestment may be stopping many of us in becoming rich in stocks.

    ReplyDelete
  6. As far as personal wealth creation goes. The key here is leverage. Many real estate investors profit enormously from it. Donald Trump commented that using leverage when it comes to real estate investing has many advantages.

    ReplyDelete

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