Just For Thinking ...
Putting most of investing eggs into one basket???
We read ..
"Mr. Wong (not his real name) invested over $1 million in the gold bar scheme of
the gold trading company that was recently in the news. It represented his
entire life savings. He was not aware that the company was on the MAS Alert
List. He stopped receiving payment and, to make matters worse, he had deposited
his gold bars with the company. He is afraid that his entire savings would be
gone."
Greedy???
Kiasu???
Naive???
No, No, No!!! We think we won't be one of these people.
But, some of us are capable of averaging down on one counter to more than 50% of our investing eggs. It is not uncommon hor!
Sama sama???
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27 minutes ago
Some of these "investors" are not small fries. Quite a few "invested" a few hundred thousands.
ReplyDeleteAnd these are not "naive" people. They pawn their physical gold at pawn shops at 1-1.5% interest while earning the carry difference with the 2% promised returns.
With the new cash from pawn shops, they bought more physical gold from these gold trading "bucket shops". Just press the repeat button.
Leverage on leverage!?
Some acknowledge they KNEW it's risky "investment". They are probably aware the music will stop one day.
By being "early" to the game, they assume they can "profit" from the johnny came lately "investors".
They thought they can enjoy the ride and pull out at the very last minute.
Withdrawal method?
Hi CW8888,
DeleteLongtime no see me on your websites. Now you know why? Don't you?
i always enjoy meeting you here.
Ah!....."Putting most of investing eggs into one basket???"
i am guilty of this too.
But WB. will encourage you to do this.
So is George Soros. He said, "It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
So i really think as long as you know what you are doing and the consequences of being right and wrong.
Welcome back. LOL
Delete