What you will never hear at any investment seminars?
Uncle888 has lost count of the number of investment seminars and investment events he had attended. He was once photographed sitting at the front row of one event and then appeared in the following year Ads for that event.
So far he has not heard any speakers saying ...
Compounding investment return can be NEGATIVE!
Every re-investment of dividends collected and realized gains are potentially at risks of negative compounding return. There is no such thing as bao jiak re-investment. Sure huat!
Read? On compounding
What did you see on compounding investment return of real people, real investment return?
Posts
out of say, 10 bloggers who publicize their investment status on weekly, monthly or yearly basis, only 2 - 3 of them detailing their paper losses positions.
ReplyDeleteout of say, 10 investment companies or individuals conducting investment seminars, none will tell of negative returns.
Money Honey,
DeleteIt shows you are mortal ;)
It's natural human behaviour.
We dress up on first dates and during job interviews.
Reading your blog is like meeting you at the hawker centre with you wearing T-shirts, bermudas, and slippers.
You are not to impress anyone.
What we see is what we get :)
is it so easy to achieve the huge profits as portrayed in the investment seminars?
Deletesome individual bloggers showed only the four digits dividends collected in each quarters but did not inform what are their unrealized positions status; this is very dangerous to novice investors visiting these blog sites and thinking that investing in shares is bao jiak investment.
"In theory there is no difference between theory and practice. In practice there is." - Yogi Berra
DeleteIn theory, there is wonderful theory for compounding your dividends, realized gains and new capital to become wealthy; but in practice there will be several bear markets in the future for long-only retail investors to learn their painful real-life lessons of NEGATIVE compounding investment return. When that happens; they will be poorer.
How many hear this Hard Truth on long-term investing over market cycles?
Beware! Don't fall asleep and be caught by the next bear!
Ha! Ha!
ReplyDeleteCW well put.
How about advising how to catch the next Bear instead of been caught by him?