My Human Asset : Self and career development and dead wood!
My path to pursue financial independence and having option to retire @ 60 from full-time job as employee
My current Net Worth as presented in Three Taps Model solution model. It covers basic retirement planning issues on liquidity, longevity and legacy.
Liquidity : Two years cash reserve in bank for 2019/2020
Longevity : Tap 1 and Tap 2 which are non market volatile fixed assets.
Legacy : Tap 3 which is investment portfolio which is very volatile across future market cycles.
My current cash flow to fund annual household expenses
Is money enough?
STI since the day I have started serious learning and investing on Jan 2000 to pursue financial independence through short-term trading and long-term investing.
Started investing at the peak of Dotcom Bubble. Wrong market timing!
More capital into the market. More paper losses. Dividends are just Panadols!
My Investment portfolio performance across market cycles since Jan 2000
Any paper gains are an illusion of wealth in the market; but any paper losses can be real losses!
Paper losses become real losses when your losing stocks are suspended, bankrupted and de-listed. You lost 100% of your invested capital. In the other case; your losing stocks are taken private and de-listed; your paper losses become realized losses!
Your money management skill through market cycles is the one that can save you from wealth destruction and chop fingers!
So far since Jan 2000, I have three zero baggers which lost 100% of invested capital!
Why? No stop loss!
Top winners to top losers
Lynch provides insight on how to achieve exceptional results
In an interview he gave to PBS, Peter Lynch discussed what is needed to achieve a track record similar to his. Even though the answer seems simple on the surface, it has many insights that are worth commenting on.
Q: Was that your secret?
A: Well, I think the secret is, if you have a lot of stocks, some will do mediocre, some will do OK, and if one or two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people. Some stocks go up 20% to 30%, and they get rid of it, and they hold on to the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run.
When the fun ones get better, add to 'em, and that one winner, you basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there. When I ran Magellan, I wrote a book. I think I listed over 100 stocks that went up over tenfold when I ran Magellan, and I owned thousands of stocks. I owned none of these stocks. I missed every one of these stocks that went up over tenfold. I didn't own a share of them. And I still managed to do well with Magellan. So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.
No of winning stock pick : 30
No of losing stock pick : 26
Winners/ Losers ratio = 30 / 26 = 1.2
Such lousy stock picker! How come didn't lose money?
Total Winning $ / Total Losing $ ratio = 2.1