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

Sunday 20 January 2019

Compound Interest is not the same as Compound Returns (4)


Read? Compound Interest is not the same as Compound Returns (3)


Every time when Uncle8888 read something similar like this in the cyber world .. he smiles!

"However, many forget the power of compounding when it comes to investing, helping you achieve financial freedom at an earlier age. Enjoy your retirement, start investing today!"

Some folks need to learn from Crash Got Sound that compounding investment return is NEVER the same as compounding interest as savers!

Albert Einstein reportedly said it. “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”



6 comments:

  1. Hi Uncle8888,

    People forget that compounding market returns is after many years of both ups and DOWNS, and with consistent RE-INVESTING of dividends. ;)

    When SGX recently ownself praise ownself about STI having better total 10-yr returns (CAGR of 9.2%) than Hong Kong and China .... I wonder how many people enjoyed that compounding returns? :)

    Even if lucky enough to start at the trough of the GFC in early 2009, many would have sold in the big corrections in 2011 or 2015.

    Many who started before GFC will have quickly sold off in 2013-2014 after "breakeven".

    Even for those who stayed in from 2009 till today, many will not have re-invested their dividends, and thus probably not achieving that 9.2% ;)

    ReplyDelete
    Replies
    1. So easy to praise ownself on theoretical investment return.

      Delete
  2. Replies
    1. Walau. It is yearly compound like you renew FD with capital and interests together as new capital.

      Delete
  3. CPF website long time ago already say: interest computed monthly, credited & compounded annually.

    Sorry, no monthly compounding LOL!

    Of course we all want daily or hourly compounding! Kekeke!!!

    ReplyDelete
  4. Daily compounding we no need to invest. Every month top up cpf

    ReplyDelete

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