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



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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

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Value Investing
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Monday, 28 January 2019

What Is Your True Holding Power Across Volatile Past And Future Market Cycles???


1) Our money i.e. a bigger war chest
Our holding power in term of money will ease our heartache while receiving doses of Panadols during bad times and smiling during good times and giving us the right to brag during CNY gathering among friends and relatives - "I told you to invest! You no listen"

 2) Our yield on investment cost e.g. high single digit or double digits dividend yield on cost

 During good times in our FIRE, FIRe or retirement phase; we can't live off those paper gains in our investment portfolio; but during bad times; we will still be receiving dividends but just smaller!
What is our true holding power across volatile market cycles? Money or yield?



Posted by Createwealth8888 at 09:26
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4 comments:

  1. Spur28 January 2019 at 14:51:00 GMT+8

    Both is best :)

    High yield .... need to buy a basket of strong moats dividend-growth companies at low-to-moderate valuations .... and hang on for years & decades. It's a game of patience .... longer you hold the better, provided the companies maintain their strong moats! LOL. Need strong conviction & analytical skills to be able to re-invest dividends or keep putting new money into these companies as well.

    Money as security blanket .... have liquidity / living expenses fund for the shorter term (1-3 years). Frankly, any expected expenditures for the next 3 years (or even 5 yrs) shouldn't be in stocks or other risk assets.

    Money --- should also build up warchest during good times e.g. saving up a portion of dividends; using appropriate overbought indicators to harvest some paper profits; using appropriate trend indicators that you're comfortable with to prevent losing too much profits + capital back to bear market or serious corrections.

    Trend indicators --- also need to know when to buy back in or scale in as well.

    I personally try to use the money methods above. But too impatient for the Yield method haha! And also too lazy & too stupid to analyse & monitor those individual companies. :P

    ReplyDelete
    Replies
    1. CreateWealth888828 January 2019 at 15:34:00 GMT+8

      Money can buy laziness and over ride impatience. Money can buy many thing. Lol!

      Delete
    2. Createwealth888828 January 2019 at 22:29:00 GMT+8

      Without incurring income from full-time job it is even more critical to keep a few years of rotting cash to fund household expenses and to ride over the next bear market to deploy war chest.

      Delete
    3. Createwealth888829 January 2019 at 08:58:00 GMT+8

      very short-term investors are traders

      Delete

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