Saturday, 28 July 2018
Minimum You Have To Go Through One Full Market Cycle: Bull-Bear-Bull or Bear-Bull-Bear. If Not Don't Talk Too Loud! (2)
Read? Minimum You Have To Go Through One Full Market Cycle: Bull-Bear-Bull or Bear-Bull-Bear. If Not Don't Talk Too Loud!
Real People. Real ROC
She started investing around 2005 with about $250K and now thinking of selling off her remaining stocks and don't bother with the stock market anymore.
After 13 years; her ROC to date is about 8.5% i.e. 0.65% p.a. It is worse than saving rate!
She also attended the course conducted by late "Guru" who wanted to make 10,000 course attendees millionaires. Too bad; she didn't belong to 10,000 millionaires material after completing the course.
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No bad lah. At lease she does not lose money. Couple with dividend, her returns should be higher.
ReplyDelete8.5% is total return including dividends.
Delete13 years is a long time to learn already
ReplyDeleteand also already trained on FA and TA
ReplyDeleteBelow is chart of MSCI Singapore blue chips from 2005 to mid-2018 with dividends re-invested. Total return is 138% in SGD terms.
ReplyDeleteUnfortunately I think very very few people can just sit tight ... some more re-invest the dividends. Unless you don't care about the money or the money not yours! LOL!
http://bit.ly/2LIelBg
Maybe most people better off to only put 50% into stocks, and the rest in cash & S'pore govt bonds... Hohoho!
Retail investors are not good at holding winners and too slow to cut off losers and by the time the losers become too little and insignificant to recover leftover. So they couldn't be bother with these insignificant losers anymore. At investment portfolio performance level it is hard to recover without significant capital injection. Since they have been losing so much money; they don't have confidence to inject more capital. That is why after decades they still losing.
DeletePersonal investing is not that easy to teach. Knowing FA and TA is not personal investing yet! Losing so much and yet still have the confidence to inject more capital and that size of capital injection is large part of their net worth. That is personal investing and confidence! Can be taught over weekend courses and participation in forum and chat groups?
Temperament,
ReplyDeleteHaha ... yeah, I was in similar straits ... staring at almost half million drawdown. What to do? Just continue hold lah Hohoho!
Actually now that I've adopted some aspect of trend following, over the last 5 years ... my wife's buy-hold-rebalance portfolio is doing better than mine!
It'll take a serious bear market for trend following to do better than buy and hold :)