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.

Think Investing as Tug of War - Read more? Click and scroll down

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

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Thursday 8 August 2013

How to become rich in stocks??? (17)

Read? How to become rich in stocks??? (16)

Read? Three new ways to get rich

Three keys to building wealth

1. Think first about risk and then about return

Curtis says: “Focus on risk first. Get your risk budget down. Know how much risk you can take and then it’s time to think about return. If we do it the other way around, we’re human beings and we’re all going to get a little greedy. The first thing you know, we’re going to be way out there on the risk spectrum. When the markets turn, we’re going to get hurt really badly. That’s the key: Start with risk, and then go to return.”

Uncle8888 said in Nov 2008 : Read? Thinking of Risks before Profit

Read? Bear market is here. Let's accumulate more by average down? (2)

Read? Understanding Stock Market Risks - Financial Fraud Risk is Real! (6)

2. Diversify investments

Curtis says: “The basic principle of diversification is that we’re not as smart as we think we are. Things are going to come out of the blue and hit us when we don’t need it. Diversify as broadly as you’re comfortable doing it. Theoretically, you should own practically every investible asset in the world. Most of us are not going to get there, but don’t just stick to US stocks and bonds like so many people do. It’s been a great place to be recently – in US stocks, anyway – but it’s not always the best place to be. You’ve got to diversify more broadly than that because just cannot perceive the future.”

Uncle8888 says: It is more than just simple diverification.

Read? Up skill your Portfolio Management

3. Always be alert for great opportunities

Curtis says: “Most of those opportunities I found over time don’t just come from market events themselves. They tend to come from the reactions of other investors who are getting way too greedy pumping markets up or they’re getting way too fearful and bailing out of markets. They create terrific opportunities. You’ve got to sit and wait for those opportunities to come. You’ve got to be patient. But, when they’re there, you’ve got to be willing to take advantage of them.”

Uncle8888 says:

Absolutely true!!!

Read? Investing Made Simple by Uncle8888 (29)

When opportunities finally come, how can you take advantage of them when you don't have sizeable war-chest to seize them?

Read? Cash: A Call Option With No Expiration Date

Buffett’s perception of cash can also be summed up in one of his aphorisms - “Cash combined with courage in a crisis is priceless.”

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