As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two 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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Value Investing
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Monday, 11 December 2017

Why I Don't Leverage Up In The Stock Market?


Kiasu or Kiasi or his Mind and Money Management?

Short-term trading and long-term investing with his initial capital since Jan 2000 and no more adding of capital since then. It is already accumulated saving since Aug 1977 when he started working after NS. He has thought it very carefully. Enough is enough over the initial few years of investing in the stock market. 

There is no need to inject more saving into his investing capital to try make more money in the stock market. 

Being single household income and in his 40s; by limiting his risk exposure to the stock market is far more important than trying to "make" more money in the stock market.

He has been applying this risk and money management till today. 

His position sizing is limited to maximum 10% of his investing CAPITAL since Jan 2000. In this way; his investment portfolio can grow and diversity; but his risk exposure to any stock is consistent across market cycles.

When he has this sense of enough is Enough; Why leverage up? 

Capital is enough!.

Return is enough!

Why ask more?

Feeling of enough is never the same for many of us. 


How many can understand this investing mind?

Kiasu and Kiasi?








3 comments:

  1. CW,

    There's hope for you yet!

    OK, counting in 2 decimal places is like you unwilling to throw away that smelly bolster you had for years... (new one don't have that smell)

    "Enough" is as grey and fuzzy as you can get ;)


    Its a sad day for me...

    I'm fast running out of topics to poke you :(


    ReplyDelete
  2. When financial goals have been achieved, there is no need to take further financial risks.

    That's why for many billionaires, most of their wealth is parked in safe Treasuries and govt bonds. When they talk about investing in certain stocks or businesses, what they never mention is that their investing capital may be just 3%-5% of their total portfolio! Hahaha!!

    Even for those still climbing up the mountain, as long as your current savings & investment plan is progressing according to timeline .... why need to increase more risk??

    Usually is impatience (FI @ 35) and greed ... and without the necessary mental fortitude & risk management properly in place.

    ReplyDelete
    Replies
    1. Those few bloggers who love to say "I invest for income!". How many folks clearly recognize that their investment portfolio size in millions of dollar. :-)

      Delete

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