Saturday, 24 May 2014

The most important chart in CW8888's blog to remember on Wealth Formula!!!


Read? Investing Lessons From Conversation With Uncle8888 (1)

Even you are NOT keen in active investing (DIY); you still need to fully understand the most important chart in CW8888's blog on wealth formula!


 Wealth = Asset value + Cash flow!






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5 comments:

  1. Createwealth888824 May 2014 at 07:36:00 GMT+8

    You must fully understand the difference between your human asset and your financial assets then you may be on your way traveling on the road to retirement income for life

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  2. RayNg24 May 2014 at 09:49:00 GMT+8

    Just to add...

    Human asset has self life (when you stop work, cashflow also stop), whereas financial asset is perpetual (as long as the company is earning money, the casfflow is just like a river stream).

    Better still, financial assets can be pass over to your love one.

    ReplyDelete
  3. Anonymous24 May 2014 at 11:28:00 GMT+8

    We (me too) always think of our Human asset or Human capital in terms of exchanging our time with a capitalist(business owner). Old already, die liu, no more HC left. It's true only to a certain extent.
    What about our time in exchange of acquiring financial knowledge and learning from putting the knowledge into practice in the the investment world?
    For me it's limitless until the Lord says, "Enough is enough for you".
    i still love reading financial and investment books.
    i visited the NLB quite often only for investment books.
    (Where got time for other books?)
    And, and,
    Some of the books are too "cheem" (most for U educated type of books) i just flip through.
    But most books i can still get something "new" to add to my understanding of the fascinating world of investment. i targeted for books that stress more on practical aspects of the investment world rather than the Alpha & Beta. It's out of necessity that i stress on practical aspects of investing (you should know why if you know who i am) though i do pay attention to the simplified ideas of Alpha & Beta in investing. i.e. due to the limitation of my IQ, i have no choice.
    But i survive!
    Shalom.

    ReplyDelete
  4. Anonymous1 June 2014 at 20:24:00 GMT+8

    What I understand about the Wealth formula is WF = Money x Time x Returns.
    So the consistency and reasonable rate of returns can result in the growth of wealth

    ReplyDelete