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



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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

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Wednesday, 26 February 2014

Learn from late Uncle Chua???


Uncle8888 has met someone last week for lunch meeting.

Told him we can learn from late Uncle Chua.

Read? Uncle Chua's investing skills


What are the two lessons we can learn from him - an illiterate?

Making money from stocks is not about how good we are at prospecting business or doing deep dive analysis into companies; otherwise full time professional analysts will be very rich and retire early to manage their own investment portfolio.

Lesson one: You have large war chest during market crash and dare to buy big.

Lesson two: Replenish your war chest for the next market crash and patiently wait to repeat lesson one.


You don't think so?












Posted by Createwealth8888 at 21:48
Labels:

13 comments:

  1. B26 February 2014 at 22:57:00 GMT+8

    Lesson 2 is debatable no?

    ReplyDelete
  2. coconut26 February 2014 at 23:01:00 GMT+8

    i agree i agree, usually i don't ask this kind of question but i ask anyway cos i'm a fool, investing wise,

    whats the % (ratio) between war chest vs vested capita at any given time or range, is there an optimal ratio??

    and whats yours may we know (so that i can copy if necessary).

    many thanks.

    ReplyDelete
    Replies
    1. coconut26 February 2014 at 23:05:00 GMT+8

      lesson 2 debatable?

      we will always run out of cash when there is a market crash or we can't get enough of it.

      but i must say lesson 1 and lesson 2 are the same lesson isn't it.

      Delete
    2. coconut26 February 2014 at 23:07:00 GMT+8

      so we need only to learn lesson 1, that will do.

      lucky me haha.

      Delete
    3. CreateWealth888826 February 2014 at 23:30:00 GMT+8

      Sad truth. We will run out of money sooner than market bottom out and recover or

      the other case is still sitting on huge pile of cash and thinking that market bottom is still far away.

      Delete
    4. Anonymous27 February 2014 at 04:35:00 GMT+8

      Or we chicken out like we thought 2008 was the bottom. But no 2009 march was the real bottom. Besides we all also like to sleep well at night.
      Secular bear may hibernate longer than we can take. If secular Bull market then Bingo! Who says Lady Luck or God's blessings doesn't play a part in your life?
      Definitely not me. Amen.

      Quote:-
      "A secular market trend is a long-term trend that lasts 5 to 25 years and consists of a series of primary trends. A secular bear market consists of smaller bull markets and larger bear markets; a secular bull market consists of larger bull markets and smaller bear markets."

      Delete
  3. Singapore Man of Leisure27 February 2014 at 08:17:00 GMT+8

    CW,

    On perfect hindsight, hoot the farm in 97, sell in 2000. Reload again in 2003, sell in 2007. Reload with glee in 2009, and.... ??? That's the 64 million dollars question! When will the next shoe drop?

    Will past cycles rhyme; or this time it's different? STI 6000 over the next 4 more years (I making this up)?

    I fell asleep in 2000; you in 2008.

    The preparations we do today will reflect our own learning and past experiences ;)

    Looking back it's so easy right? This market cycle investing theme?

    You are right. Difficulty is in the "sitting".

    I must go learn fishing!

    ReplyDelete
  4. CreateWealth888827 February 2014 at 08:27:00 GMT+8

    When to start buying?

    One grand old uncle (80+) told me this. The same old uncle who held APB for XX years and lost count of how much money he has made.

    When you see both ST and Zaobao showing at the same time large graphical of global market crashes at the front page.

    This is the time to start buying slowly.

    Ah Peh, you chun bo?


    LOL!

    ReplyDelete
    Replies
    1. Singapore Man of Leisure27 February 2014 at 11:53:00 GMT+8

      CW,

      Old vinegar and old wine power!

      This uncle must be laughing all the way to the bank after the ThaiBev buy-out :)

      Delete
  5. coconut27 February 2014 at 08:37:00 GMT+8

    great we are all here.

    chicken out is not an option, the question is is there cash lying around for us to pick stocks? thats the most problematic when market crash. but there is one remidy for short of cash.

    as market crash and volatility increase (usually the case but not necessary), the market price will have distortion and we can take advantage of reallocation of our investment, thats the next best thing to do if you run out of cash.

    on the subject matter, how fast can we replanhish out cash after we invest? its only the dividend portion we can take into account, say 3,4,5,10%? if we are full time investor/trader/retires, where can we get the money? no need to eat?

    sitting is not difficult la, its like almost impossible to me haha.

    ReplyDelete
    Replies
    1. coconut27 February 2014 at 08:44:00 GMT+8

      so what to do if i retired from trading?

      get someone to sit on my behalf. i go and play snooker.

      Delete
    2. Singapore Man of Leisure27 February 2014 at 11:50:00 GMT+8

      coconut,

      No wonder Fat is willing to let someone trade his account for him - although that didn''t work out.

      Managed accounts? Managed Futures?

      I guess that's what retired entrepreneurs do too. They become angel investors to young start-ups.

      Old no energy but got money; young got lots of energy but no money.

      Good match!

      Delete
  6. Anonymous27 February 2014 at 12:34:00 GMT+8

    "on the subject matter, how fast can we replanhish out cash after we invest? its only the dividend portion we can take into account, say 3,4,5,10%? if we are full time investor/trader/retires, where can we get the money? no need to eat?"

    Ha! Ha!
    coconut i know you are always "brilliant" by asking the $64,000,000.00 question.

    Please choose one of the following, it may answer your question.

    1) "Man without visions (dreams) will perish".

    2) "Man must first persieve before can achieve".

    3)"Imagination is more important than knowledge".

    No 3 is by Albert E.
    But i think it's very, very close to No1 and No2

    ReplyDelete

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