For those who can appreciate Waterfall chart!
This one chart tells the complete story of Uncle8888 on how he has built his net worth from lifetime of earned income after tax for 39 years as employee from Aug 1977 to Sep 2016; and 18 years of investing journey from Jan 2000 till now through several market cycles of Boom and Doom suffering large losses as well.
It is a investing journey of pains, doubts, and learning!
When we lost too much in the Bear market; and we will be spending the next Bull trying to recover from large loss just to break even. Is this called investing? LOL!
Why timing the market and time in the market are very important?
When you spend too much time in the market with your stock holding BUT too little cash on hand in the Bear market; you are going to cry sooner!
Dividends are just Panadols to ease your heartache and headache!
Posts
CW,
ReplyDeleteFew tell the "truth" like you do ;)
Some others also share this "truth" obliquely through their yearly capital injections into their portfolios - and that's the biggest source of their compounding growth!
The rest is if you don't ask, I don't say ;)
The fastest known way to break even is to regularly inject capital into investment portfolio.
DeleteThat's why must measure ROI! Portfolio figure does not tell the full story.
DeleteAlamak ... don't remind me .... I spent 2009 till 2012 getting back to breakeven ... I'd still call it investing. Although it felt more like slog-vesting LOL!!
ReplyDeleteTalking about time & markets ... I discovered since 2010 that there is an optimal amount of time for me (my mind) to spend in the markets i.e. analyzing & studying etc. Too much overthinking & I tend to underperform. Just go with the flow & focus on the big stuff & I do ok. So it's been a case of think less ... make more... LOL!!