Uncle8888 knows that most people are able to strengthen their war chest through their regular saving from their earned income; but NOT for Uncle8888.
In Jan 2000 at his age of 43+, he seriously came to the stock market with all he already had. He couldn't afford to lose more than that as it is really a sizable war chest from his past 23 years of saving. Remember that he is from single household income with three children and five mouths to feed. No extra money to play play in the stock market!
Till today in Aug 2015, even after 15 years of more earned income; it is still the same amount of capital available for investing. No more and no less. This is all part of prudent risk and money management in practice - strict discipline; greed and fear control at the maximum!
The best outcome arising this practice is that his investment performance is simple to measure and perfectly measured by XIRR as there is no complication of additions of new capital.
So how does Uncle8888 strengthen his war chest over market cycles?
Over the last 15 years; he did learn something about strengthening his war chest. You may like think over it even though you have the ability to strengthen your war chest through your regular saving.
There are two ways of strengthening his war chest - positively or negatively.
Positively by making hay while Sun shines or negatively by pulling out weeds from his garden.
He realized he has done both; but he finds that positively is still better than negatively. The down side could be many years of seeing dried hays doing nothing.
This can be sickening too!
No right or wrong as the size of war chest still count when it is needed!
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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