I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Tuesday, 17 July 2018

Hell Of Difference In Thinking Between Retail Investing And Crowd Lending


For retail investors who are keen in FA; they will be looking closely at interests payment. High interest payment and  highly leveraged may be a red flag to look closely.

 But; for crowd lending; retail lenders are full of smile on their face as they love high interests payment from SME. They don't really care how high interests payment will affect company's bottom line and profitability and may be also a red flag to company's ability to stay competitive and survive due to higher cost base.

 Strange!

 Lending and investing. 

 Can be so different! Sigh!!!
Posted by Createwealth8888 at 08:41
Labels:

1 comment:

  1. Spur17 July 2018 at 10:44:00 GMT+8

    Hi Uncle8888,

    Lending platforms also got retail-but-not-so-retail speculators, as well as the pure bei kambing / yield hogs... :)

    Those more experienced will study the borrowing company's financials & business prospects, as well as its industry outlook.

    I won't be surprised if the owners or shareholders of such retail lending platforms often have 1st bite of the pie for the more promising companies. LOL

    In the "professional" world of lending i.e. bond market & private equity (they usually do it with contingent convertible bonds or CoCos), the average investor is usually "smarter" than the average stock investor. That's why the old adage that bond market is "more correct" than stock market.

    But when you open up junk bonds & "retail" bonds to bei kambings, yield hogs, HNWs, and snake oil bank RMs ... Alamak ... you get fun shows happening!

    ReplyDelete

Subscribe to: Post Comments (Atom)
Related Posts with Thumbnails