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14 minutes ago
Sunday, 28 October 2018
Focus On Your Human Asset First As It Always Pays More And More Dividends
Read? Earn More, Save More And Invest Well???
Do you happen to know any investment bloggers in Singapore who have made their first million from the stock market way before they made their first million from their job?
Post their blog link here!
Read? Climbing your investing or corporate ladder? (4)
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CW,
ReplyDeleteThe ones making their first million from the stock markets would more likely be those who invest to achieve - professional investment fund managers ;)
Meritocracy. Hard to get into the industry; entry barriers not low. Even harder to stay in the job if you don't perform!
No prizes on who are the ones who are investing to escape! Anyone and everyone can do it!
LOL!
Haha SMOL,
DeleteYou beat me to it .... I was thinking of those fund mgrs too. Just ask those in GIC or Temasek LOL!!
Actually majority of fund mgrs focus more on marketing, sales pitching customers, acquisition of new funds/cash/assets rather than outperformance in the markets. They become millionaires thru OPM. ;)
Of course whether they can last long enough to accumulate their personal millions depends on how badly their actual markets performance is. But many are just about similar as market index performance. (GIC and Temasek .... looking at you ;))
More & more of the large banks & fund houses are using fintech and AI to replace large portions of what analysts & fund mgrs do. Whatever famous investors & hedge funds do, they try to codify them into algorithms and implement them using AI in ETFs. That's why now there are more ETFs than stocks in US! :O
Even with UTs and mutual funds, AI plays increasingly important tool in screening, asset allocation, asset class rotation, factor investing, risk parity, options writing, long-short strategies etc.
Spur,
DeleteLOL!
We are both thinking from landowner perspectives ;)
At the man-in-the street level, its IT solutions like Grab and self-ordering/payment solutions at supermarkets/fast food outlets/cinemas.
At the corporate level, fintech and AI will be the next wave of headcount reductions for carbon based corporate warriors...
I suspect this AI trend, it will be just as "impactful" as the last "outsourcing wave" during our time :(
I am the dinosaur in trading with my discretionary entry methods :(
I see these young retail traders using MT4 platform to program their own algorithm trading!?
Serve me right for not learning coding!
SMOL,
DeleteHeh heh ... one thing coding cannot implement yet ... emotional mastery --- EQ & AQ. :)
Many trading / investing systems (algorithms) have proven to be quite successful over 30 to 100 years, either beating their indexes or similar performance but lower volatility. But all have & will experience periods of underperformance, sometimes for a few years. :O
Humans are emo & have plenty of behavioural biases --- they were what helped humans to survive from caveman till today. :)
So whenever a system goes thru periods of underperformance (or not up to expectations), the tendency is to sell, switch, find the current hottest method/assets etc. Those who do nothing, sit on their thumbs etc tended to die out during the times of sabre toothed tigers & wooly mammoths ... most of their descendants didn't make it to today! Haha!
Different people different threshold ... some can tahan 12 months underperformance ... some initial 1st day loss (or no gains) that's it ... outa here! LOL!
Many have tried to implement Buffett's style as an automated system, but quickly realized it wouldn't be a financial success for them, as there can be periods of big drawdowns & poor performance compared to current trends. E.g. For 2 years from 1998-1999 Berkshire dropped -50% when the S&P500 went UP +50%. No "sane" investor will tahan that.
Anyone remember when Buffett was the butt of jokes & ridicule during the late 1990s?!? I think many of current financial bloggers will be shocked at some of the Wall Street headlines about him then! :)
As Buffett himself said before he was lucky during 1973-1975 (the first time when his fund dropped -50%) that he was managing money of mostly HNW people with holding power & diversified assets. If he had been managing a retail fund, he would likely have faced large redemptions & lost his job! LOL!
Spur,
DeleteAh! We are indeed survivors from the dot.com era ;)
Yup, no one ever mentioned Warren Buffett in Singapore at that time. It was all Peter Lynch and his 10 bagger fame!
Growth outperformed Value hands down - that's until it all came tumbling down :(
Everything got fashion one, just like mini-skirts. If we wait long enough, maybe bell-bottoms will make a comeback? LOL!
I wonder how many of Warren Buffett's acolytes can stomach a -50% drawdown when they are vested up to their gills. Don't they know there's a reason why Warren Buffett sits on a mountain of cash?
I guess each generation has to go through their own baptism of fire...
P.S. Now we have robo advisors? I find it so mind boggling that anyone woould prefer a machine over the human touch1? That's another one I want to see how it pans out when the next shoe drops ;)
Robo advisors are more intelligent and unemotional so we can trust them with our investment. LOL1
DeleteYour motive now?
ReplyDeleteMy motive now is to sustain enough cash flow to fund 2019 household expenses from investment income and to defer any asset draw-down to top up shortfall in investment income.
Like that is invest to escape or achieve?
Hmm ...