Wednesday 7 October 2015

My War Room (6)


Read? My War Room (5)

We may have just two to four opportunities in our lifetime of long term investing to create wealth from the stock market.

Uncle8888 has managed to create some passive income (Money Trees) from 2001 to 2003; BUT NONE from the biggest opportunity in the stock market in last GFC 2008/2009. 

His biggest mistake so far!

 Instead of investing for Money Trees; he was caught busy cutting losses and switching horses to stay calm and raising cold hard cash to sleep better.

It is not the best way to create wealth in rare window of opportunity presented by Mr. Market by trying to stay calm and raising more cash to meet liquidity needs. Dumb! Really dumb!

Do you see his reason in retaining his larger War Chest?


 
His Investing Goals is for ten years!

Another 6 years to go. Should have enough time for the next Great Bear opportunity to meet the ten-years End Goal.
 


 
 
at

6 comments:

  1. Createwealth88887 October 2015 at 08:11:00 GMT+8

    Set a longer time based goal to avoid being pressurized by time to act to meet our goals.

    ReplyDelete
  2. yeh7 October 2015 at 08:15:00 GMT+8

    uncle

    i have increased my war chest and market rebound

    ReplyDelete
    Replies
    1. Createwealth88887 October 2015 at 08:21:00 GMT+8

      Read and study again. Seriously understand it --> Strengthening War Chest From Our Investment Portfolio??? (2)

      Making hay while Sun shines or by pulling out weeds from Garden.

      Answer your own question. What are you doing?

      Delete
    2. Singapore Man of Leisure7 October 2015 at 10:53:00 GMT+8

      temperament,

      That's why to fly, we need a pair of wings ;)

      Those "young" in the market are having angst now because they are discovering they have been flying with one wing (actually possible, but you need to be a helicopter, but that's next level stuff)...

      And the fisherman is one of only few who openly shares his BIGGEST mistake. And that's not because he got lousy "entries" ;)

      Well, I think the CEO of Glencore - Ivan Glasenberg - is wishing he had exited earlier, just like the remisier king Peter Lim had exited from Wilmar ;)


      Make a guess when the sly fisherman have reached his 10 year goal, will he move the goal posts and have another 10 year goal, or will he exit the market?

      Not adding fresh funds to the equities market - is this an entry or exit strategy?

      Delete
    3. Createwealth88887 October 2015 at 13:22:00 GMT+8

      By not adding any fresh funds I will be capping the upper limit of risks i.e. taking care of the down side and let the up side take care of itself.

      Delete
  3. Dividend Knight7 October 2015 at 13:10:00 GMT+8

    I agree
    Having a war chest ready at all times is important.
    We must be prepared for the 10-year cyclical bear.

    ReplyDelete