How to become rich in stocks??? (5)

Read? How to become rich in stocks??? (4)

Number doesn't lie!!!


Read? Are you one of high income earners in 2009 in Singapore?

1. How many of us are high income earners and can save more money for investing capital?
2. How many of us don't want to marry and may have more money for investing?
3. How many married couple want to be DINK and may have more money for investing? (Dual Income No Kids)
4. How many of us can have an account size of more than $1M for investing?
5. How many of us has an account size of lower $XXX,XXX and want to become rich in stocks?

I believe many of us will know the answer in our heart and know where we are and where we want to be?

Next come the two most common questions in investing in the stock market ....

Dividend vs. Capital Appreciation???

Income stocks vs. Dividend Growth stocks???

You have to make a choice!!!


Read? Can recommend some high yield dividend stocks for passive income? (2)

Guess what happened after someone asked me the above question. Many people become buay song with the "reply".


But, before I say my piece .....

“If you are in the right sector at the right time, you can make a lot of money very fast” –Peter Lynch
"You need $10,000 and two 10-baggers, and you're a millionaire." –Peter Lynch

It is how to become rich in stocks if we read Peter Lych correctly!
$10K ---> $100K ----> $1M

or

$XXX,XXX ---> $X,XXX,XX (A portfolio of multi-baggers will help)

Let begin ......


Read? Uncle8888, how do you find multi-bagger stock?

Uncle8888: "Well, I have successfully discovered 54 different stocks in SGX that I have bought in the past are not multi-baggers."

The moral of the above story is to keep finding one!

Is Uncle8888 super investor?

No. No. No!!!

I have made big losses in 2008 Bear market too!

Total net losses in 2008: $160K

•  4 months of losses: Jan:$76K, Aug:$68K, Sep:$18K, Oct:$31K

Read? Trading Performance Review


I was the HERO and stubbornly held on to two rotten durians to ZERO and then the durian owners kind enough gave me two pieces of Toilet Paper to remind me of the SHIT!

Read? Stock Picking is like Choosing your own durians?









Do I earn the right to tell you this true life story in investing after many years of adventures and mis-adventures in the stock market?

What do you think? Hmm....

Why I am strong advocate of waiting for dividend growth stocks to come to us?


Case Study 1 - Kep Corp

Batch 1: Bought in 18 Sep 2001 after WTC Attack and holding it over 10.8 years

For past 10.8 years, the dividend yield is as follows:

Lowest: 10.4%
Highest: 44.2%

Total Dividend Return on initial investment cost = 291%

Annualized Return = 27%

Unrealized capital gain as of Friday market closing price at $10.28 = 681% over 10.8 years

Annualized Unrealized Return = 63%

So Dividend Return vs. Capital Appreciation =  291% vs. 681%


Batch 2: Bought in 26 Mar 2004 and holding it over 8.3 years

For past 8.3 years, the dividend yield is as follows:

Lowest: 5.7%
Highest: 18.1%

Total Dividend Return on initial investment cost = 99%

Annualized Return = 11.9%

Unrealized capital gain as of Friday market closing price at $10.28 = 220% over 8.3 years

Annualized Unrealized Return = 27%

So Dividend Return vs. Capital Appreciation =  99% vs. 220%


Paper profit is useless as it cannot buy food

I know!

That is why I am also doing short-term trading when market presents opportunity to make pocket money.

Read? Kep Corp: Sold $10.14

I have done 94 rounds of Kep Corp.



Case Study 2 -  Semb Corp
















Batch 1: Bought in 24 Dec 2002 and holding it over 9.5 years

For past 9.5 years, the dividend yield is as follows:

Lowest: 6.1%
Highest: 59.8%

Total Dividend Return on initial investment cost = 252%

Annualized Return = 26.5%


Unrealized capital gain as of Friday market closing price at $5.13 = 599% over 9.5 years

Annualized Unrealized Return = 63%

So Dividend Return vs. Capital Appreciation =  252% vs. 599%


Batch 2: Bought in 15 Sep 2003 and holding it over 8.8 years

For past 8.8 years, the dividend yield is as follows:

Lowest: 4.1%
Highest: 26%

Total Dividend Return on initial investment cost = 107%

Annualized Return = 12.1%


Unrealized capital gain as of Friday market closing price at $5.13 = 204% over 8.8 years

Annualized Unrealized Return = 23%

So Dividend Return vs. Capital Appreciation =  107% vs. 204%

Batch 3: Bought in 25 Oct 2005 and holding it over 6.7 years

For past 6.7 years, the dividend yield is as follows:

Lowest: 4%
Highest: 16%

Total Dividend Return on initial investment cost = 52%

Annualized Return = 7.7%

Unrealized capital gain as of Friday market closing price at $5.13 = 87% over 6.7 years

Annualized Unrealized Return = 13%

So Dividend Return vs. Capital Appreciation =  52% vs. 87%


Paper profit is useless as it cannot buy food

I know!

That is why I am also doing short-term trading when market presents opportunity to make pocket money.

Read? Semb Corp: Sold $4.25 ROC 5.0%

I have done 52 rounds of Semb Corp.




Now I am patiently waiting for more to come ...

Number doesn't lie!

Income stocks vs. Dividend Growth stocks???

Do your own thinking ....

After post add on story:

One reader sharing a story how to become millionaire with RM1K initial investment and grow to RM3.2M over 40 years.