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

Monday, 16 March 2015

Your War Chest For The Next Big Bear???



Deploying your big war chest for the next big Bear?


Hmm ....

 













Let Uncle8888 shares his thought based on real experience on the ground with some real retail investors in those cyber encounters ....


Depending on you how build up your big War Chest?

1. Bulk of it comes from your saving  

 or 

 2. Bulk of it came from fear of market crashing and liquidating your holding as War Chest. Cash is King!

 Thinking ..

 If it is 1, most likely you can deploy your War Chest 

But if it is 2, not sure how many can actually do it.
Read? What was I thinking and feeling in Mar 2009 Bear market low? (2)




Posted by Createwealth8888 at 08:03
Labels:

6 comments:

  1. la papillion16 March 2015 at 15:56:00 GMT+8

    Hi bro8888,

    Jackpot! I think you hit it :) (1) is offensive and predatory in nature, while (2) is defensive and made out of fear! So now, not only must we have war chest, we must have the right quality of war chest!

    At the end of the day, account size still matters. If you have a big account, you don't have to sell your holdings to fatten your war chest and then you can deploy them more readily when it's needed!

    ReplyDelete
    Replies
    1. RayNg17 March 2015 at 10:04:00 GMT+8

      LP,

      You mean have the right quantity of war chest instead of "quality".

      Delete
    2. la papillion17 March 2015 at 12:13:00 GMT+8

      Hi Rayne,

      Haha, I really meant quality :) even though ultimately I think quantity affects the quality of the warchest!

      Delete
  2. Rolf Suey17 March 2015 at 23:47:00 GMT+8

    Hi Uncle CW,

    My balls will shrink during bear. Not because my portfolio halved or less, but because I will see people around me losing jobs, having economical problems... country as a whole not well...

    Maybe only me laughing very loud because I have a huge warchest???

    Another problem is when is the time we call bear? If u says its bear, maybe just beginning of a bigger fall. Time of entry?

    I do not have war chest. I accumulate rainy funds. Do not like bear... hate to see people out of jobs... Do not know exactly how to deploy war chest also during the so call bear... you teach me?

    I still be consistently investing now, but more rainy days funds than investment funds.

    ReplyDelete
    Replies
    1. Createwealth888818 March 2015 at 07:29:00 GMT+8

      Sometime in the past when I recalled the past images of weeping senior ex colleague who was retrenched, my ball shrunk. Probably that is why my emergency fund is about three years worth of household expenses and much bigger commonly advice of 0.5 to one year. :-(

      Now, at least 67% of household expenses till 80 years will come from fixed asset drawn down. I want to feel extra secure with some certainty. of liquidity regardless of market.

      Delete
    2. Createwealth888818 March 2015 at 09:28:00 GMT+8

      Excluding residential home and shares which are so volatile (non fixed value).

      Delete

Subscribe to: Post Comments (Atom)
Related Posts with Thumbnails