As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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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.

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Tuesday, 24 May 2016

The Dark Side Of Investing To Become Rich That Is Seldom Revealed By Investment Bloggers!!!

Uncle, how arh?

Real People. Real Investing outcome since 2006.

Look at the year carefully and think about it!

The advantage of investing early to compound our investment and this is what many investment bloggers wrote or advocate!

Zhun bo?

He started investing (early) in 2006 and then what happen ....
Uncle, how arh?
With net losses at -45%, his current investment portfolio and together with his war chest, he will need to generate at least 60% return just to break even from current losses.
So how?
60% return?
Wait for the next market crash?


  1. CW,

    The sad truth is that with the next market crash, since he is still vested, he'll need more than 60% return to breakeven - and that's if he can "time" his warchest deployment "near" the next market bottom.

    If not, current losses multiplied by new losses, that's how capitulation occurs.

    High networth investors can sue their private bankers and investment advisors - and that's despite all the disclaimer fine print.

    But as the "investor" riding in the Comfort Delgro bus, can you afford a lawyer to seek redress?

  2. SMOL is correct in one swallow doesn't make a summer.
    Not to lose heart, WB said if you can't bear or tolerate to lose 50% of your portfolio you shouldn't be in the market. IIRC.
    If you are still young and your HC is high, you shall see many swallows(market crashes).
    My highest portfolio loss was 40 to 50%.
    And it was during the latest fiasco of 2008/9.
    So i make very little profit this "round".
    Money now is rotting in the bank.
    HA! HA!
    Actually investing should be a lifetime affair as far as my experience is concerned.

  3. Hi CW,

    Reminds me of my own portfolio which has hardly move since 2006 but what about the dividends? If he has been consistently receiving dividends, his 'losses' won't be so bad ya.

    1. You are right too.
      When i lost 40 to 50 % of my portfolio, my dividend income (ignore DY) was the highest in my investment history.
      So try to buy good dividend yield stocks that pay even in a market crash.
      Actually at my stage of investment, i am trying to built an income portfolio more then anything else.

    2. temperament,

      That's how the game is played ;)

      Young build capital; young-at-heart switch to income.

      Most of the young yield hogs have put the cart before the horse...

      10% yield on 100K portfolio is meh... One holiday in Europe money gone.

      5% yield on 1 million portfolio... Eh? Almost 4 times the payout of CPF Life Full Retirement Sum?

      Primary school math.

    3. Ha! Ha!
      Primary school maths i very good result one.
      O level arithmetics still O. K.
      Fortunately for us most investments need arithmetics only.
      No need calculus or alpha & beta.
      Of course those with high IQ if they also blessed with high EQ are like tiger added with wings(Chinese saying).

    4. Old money including dividends were re-invested and currently sitting on net losses. New money from saving as war chest is waiting for investing.

      Investing for compounding growth is that not easy. The dark side is seldom made known in the cyber world.

    5. Agreed!
      Only very few of us succeeded in the end because we make lesser mistakes and not very big ones too, throughout our investment journey.
      Also, in the beginnings, we have at least understand well enough what to buy what not to buy.
      For me at what price you buy is the very important if not more important then when you buy.
      Sound like market timing, huh?

      For me dividends are considered as income - added to new money.

    6. :-(

      He got King Wan @ $0.28. The lust of high yield stock but without its Panadol as painkiller. It is a real pain in the ass!

  4. i always advocate: get out while you can.
    don't be afraid to jump again.

  5. Hi CW,

    So u see the solution is not to learn how to excel in investing. Rather it is to learn how to teach investing, but first, must have all ur insights and analysis seem impressive to the public... then u can verbally write how much ur passive income is without verification and w/o telling where in the first place u get ur capital. Maybe it's from ur parents hardearn money flat... Then u can start ur teaching lessons!

    Confirm plus guarantee if ur students number grow exponentially, it is going to be more juicy than the stock market returns.

    So this is called using investment to mask entrepreneurism!

    1. Quote : "using investment to mask entrepreneurism!"

      Anyone know where we can read real concept with real practice with real return?


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