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

Saturday 18 April 2015

How to become rich in stocks??? (27)

Read? How to become rich in stocks??? (26)

How many times have you read this?

Is never wrong to take profit?

Depending who are you asking?

Ask Uncle8888?

His answer ....

Yes and No!

Never wrong but not exactly right!

You are getting confused?

Uncle8888 has done both. Sell and Never Sell!

So this is not a theory and also not a concept.

Real People. Real Story here!

First, you must try to understand Uncle8888's Wealth Formula:

Wealth = Asset Value + Cash Flow

We create wealth from the stock market from high appreciating asset value (best are those multi-baggers) and receive (1) year after year of cash flow from dividends from these assets or (2) cash flow by taking small profit and return the asset back to the market and kill off future cash flow. Cash is King only when we can safely buy back similar asset value with the same level of cash flow. 

Buying back is not difficult. You may like to think so.

How many times have you try to do it? 

Uncle8888 has tried to buy back so many times. Try until sianz! 

So he knows what he is talking. Remember his Round X or Round XX. But, after 15 years, he still haven't hit his first Round 100 announcement. Sianz!

Self consolation. He is not full time trader! 

Next, you must try to understand when you should be taking small profits and when you should NOT even try to take small profits.

Hard to understand?

So cheem?

Profiting from the Bull market and profiting from the Bear market is never the same.

Buying in the late Bull and don't know how to take profits; soon you are going to regret and feel sorry!

When we buy in the Bull and especially buying in the late Bull, we must make our money from cash flow by realizing profits and even small profits; but buying in the late Bear, it is different story. 

Knowing that difference is how you can become richer from stocks.

No BS! No Snake Oil Selling here!

Based on his personal experience from last GFC as PART-TIME retail investor and after so many years; he finally realized that it is not that easy to become rich from cash flow by taking small profits.

Those who can they will trade full time for a living. Some also "can"; but teach full-time to show you can do it part-time.

Here is the case study on his Kep Corp.


Keep talking about Keppel.

Sianz bo Uncle! 

Some tulan folks may start to Twit or comment in their Facebook to show their displeasure!

But never mind. Old man likes "Wa Ka Li Kong!" Bo hew!

What happened when he never sell for 13.6 years since Sep 2001?

407% or 12.7% CAGR from cash flow over 13.6 yrs and add in value asset into Wealth Formula. BTW, it is not including $0.36 that will be XD on 22 Apr 15.

It is 1,009% or 19.9% CAGR over 13.6 years as of 17 Apr 15 market closing price.

What happened when he buy and sell over 13.6 years since Sep 2001 for 94 rounds?

Read? Kep Corp : Bought @ $9.64 for Round 95

His total cash flow by taking small profits is about 564% and that is an average of about 6% per round.

If he takes 1,009% from "Never sell but receive cash flow from dividends" and divided by 94 rounds and that is an average of about 11% per round of earnING and earnED.

Did you see the difference?

One is doing nothing more. Shake leg and collect money dropping from Money Tree. The other one is analyzing hard to find where to collect money. Siao bo?

Buying in the Bull or especially in late Bull you better learn to take small profit fast and survive.

But, how do know we are in late Bull?

So, just sell and take small profit. It is that simple. Is never wrong to take profit in the Bull.

But; buying in the late Bear and by taking small profit in the Bull or especially in the early Bull, it is quite certain that you are going to miss out the rare opportunity of becoming richer from stocks. 

Cash flow by taking small profit and Cash flow from collecting dividends is different. We must try to understand how our mind think of cash flow. 

One is "scare to lose". Take first!

The other one is "no scare". Why scare? Got cash flow coming. Scare for what?

How to become rich from stocks?

Back to Uncle8888's Wealth Formula again.

Stock Wealth = Sitting on volatile unrealized high asset value (best are those multi-baggers) + growing cash flow. (growth dividend stocks)

Repeating it over long run by adding more stocks soon you will become richer and richer and then become rich enough to change to Sustainable Retirement Income For Life investing strategy.

Not actionable?

How do we know it is buying in late Bear and selling in the early Bull?

This is the precisely the reason why not many retail investors become richer from stocks.  Right?

Most can write with one hand. How about writing with both hand at the same time?



  1. Very good article.
    Lots of common senses investment strategies.

    Thumb up!

  2. Wow qian bei,

    You are in the zone!!!

    Must have written this post all in one breath (一气何成)!

    You know what's the idiot part? I can't find anything to poke!?

    That's the 最终心法 isn't it?

    You say write with both hands; I say fly with both arms ;)

    1. Here. You are safe to anyhow poke. I have Rubber skin. No hard feeling. It will rebound on its own when the poke is released. :-)

    2. CW,

      Is it 4 years now?

      I think few can match the way we poke, challenge, and debate with each other ;)

      Thanks for being my touchstone!

  3. Hi CW,

    Awesome! Strike some investors into their heart. Some analysts/bloggers sometimes tell people buy, sometimes ask people sell...

    So many talks that now about the Bulls run! So many people say sell and take profits. Many amateur use Warren buffet phrase "be fearful when others are greedy, without knowing the real meaning!"

    some many guru in the blogspace that take the greenhorn investors for a ride... NOT YOU! hahaha...

    In fact, I m still adding some of the stocks that I think it is superb for the long term. And I am keeping my good stocks and no selling... Those dividends cash cow, I also let them milk themselves... No selling..

    I will like to agree for companies like Kepcorp calibre, it is better to do nothing most of the time. In fact stay invested and load more of it during right time.

    Most successful investor do nothing most of the time. Do not confuse movement with action. Know when to sit and wait.” - Jim Rogers

  4. Like SMOL said: "Watch what they do and not what they say."



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