Quote : " How to Own ‘Zero-Capital’ Stocks Of course, not all stocks can actually appreciate four times its original value. That said, in the event that a stock’s price double, I would not recommend selling half of the stock holding, as the remaining stock might be too little. We should not be holding insufficient amounts of quality stocks that we may come by, so I will impart a different method to make the stocks ‘free’. Investors can deduct dividend payouts from their initial costs, and also deduct bonus shares from the amount. Over a sufficient period of time, the stocks may actually become zero-capital stocks or even ‘negative-capital stocks’ when the amounts deducted exceed the initial investment, which means that the investor will be in a profitable position no matter what happens next.
The above method by Dr Chan is not too different from Uncle8888's way of accumulating his pillow stocks. But, Uncle8888's method may be faster way to accumulate more pillow stocks by seizing those opportunities in short-term trading across market cycle by stuffing more feathers to build pillow stocks.
Total Realized Gains = Net P/L of many rounds of the same stock + Accumulated dividends of the same stock
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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