Friday, 25 March 2016
Time, Effort and Knowledge Doesn't Really Make Us Successful Retail Investors???
Real People. Real Story!
He started in his 40 with a sizeable investing capital in 2006, after more than 10 years of reading many books on investing, reading tons of analysts reports, doing TA and FA, reading blogs, forums and including frequent visits to CW8888 blog, etc.
He did all he could to improve his investment portfolio performance; but he is still sitting on net loss of more than 60% in his investment portfolio.
What went wrong?
Is investing somehow unique unlike other life skills, activities or sports, where we can improve ourselves over time if we put in more time, effort and determination to learn?
So how?
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Too many moving parts in investing?
ReplyDeleteSo it is really difficult to master this investing skill?
CW,
DeleteInvesting is not unique.
1) It's about right fit.
If we put a square peg into a round hole, even after 10 years, it will not fit...
Not everyone is suited for investing.
Just like some Chinese are monolingual or have an England bias - no amount of "forcing" or "incentive" will make them competent or like Mandarin.
Similarly, not everyone can be in sales and marketing even though we all know that's where the money is - profit centre is more fun than cost centre.
2) Sometimes its about the vehicle.
A competent property investor may suck at equities and vice versa.
Even in trading, some are just better at trading forex or commodities than equities. Can't explain. It's just so.
3) Self awareness
Investing to achieve is not the same as investing to escape.
If its to "escape", there are lots of other paths other than investing.
a) Marry rich (now that's leveraging on Other People's Money! OPM)
b) Discover spirituality (Unless its prosperity gospel; do we need more money to be at peace with ourselves?)
c) Fall in love. Need not be marriage kind. Fall in love with nature, with politics, and other social causes that makes you feel alive. There is purpose in your life.
d) You fill in the rest.
Cannot be the only purpose we are here is to accumulate more never ending money?
How to convince anyone that investing is not for them?
DeleteEither they will continue losing and learning or they chop fingers and become great savers.
Perhaps it's not necessarily for others to convince him bcos the problem is inherent in him and no one can help him except himself.
DeleteA stubborn person can be a soft and nice guy, but is one that fail to see thru within himself and fail to accept facts and step back to learn, change and improve! Somemore it's already so many years. it's been moulded and all set.
It's about the understanding of what you are good at and FOCUS on what you are good at, to build the cutting edge! Track records provides feedback!
Yes, the right fit as Jared mentioned! I am adding one more factor "Failure to evolve!"
"Either they will continue losing and learning or they chop fingers and become great savers."
Deletethe first case is sad. the second case is sadder if "great savers" means savers of only 30% of income.
Reading is overrated in this particular example.
ReplyDeletePerhaps Critical questioning, self measurement and self reflection may be more appropriate for this one example.
一日三省
If still cannot, go back to cpf, averaging world fund sg fund, ssbs, insurance participating funds. Don't even touch corporate bonds and reits.
He will be happier that way.
Not all brains are born for all things.
There can be a genius baller or genius painter but somehow cannot pick up investing properly.
Us trying to get them to do well could be doing them a disservice.
There are so many investing styles and strategies, one can read a lot about them but not necessarily be versed in any of them or be suited to deploy them.
ReplyDeleteJust wondering... What has he done / done wrong to "improve on his portfolio"? Did it actually improve eg. from 70% loss become 60%?
Like SMOL said we don't invest to breakeven.
DeleteThis is so vague
ReplyDeleteWhat did he buy?
If he bought index fund, he would at least perform with the index
So what is the issue?
is it a case of a chef who doesn't eat his own cooking during this spare time?
ReplyDeleteor is it a case of an inspector in a slaughterhouse who witnesses so much carnage, he turned vegan?
temperament,
ReplyDeleteOur strength as "bo-tak-cheh" is we don't know what cannot be done! Like Youth!
Your highly qualified relatives KNOW the risks involved ;)