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

Friday 5 February 2021

Real and Illusion Of Wealth In The Stock Market. It is selling that counts! (2)

 Read? Real and Illusion Of Wealth In The Stock Market. It is selling that counts!

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing: He lost a bundle in the South Sea Bubble, explaining later, 'I can calculate the movement of the stars, but not the madness of men.' If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.  ~Warren Buffett

Read? GameStop falls 42% more despite easing of broker restrictions, down more than 80% this week

Of course; there are real winners taking money off the hard earned savings from pitiful losers who will be sitting on unrealized paper losses for how long! Sigh!

There is always buyers and sellers in the market! Always keep this in our Mind! We won but someone lost it. We lost but someone won it!

"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














6 comments:

  1. Sigh ... as I commented on 28 Jan ... Possibly the end of the beginning here.

    Make no mistake, retails jumped in with both their eyes big big ... for $$$$$$$$. All those motherhood statements about "small guys against unscrupulous Wall Street" are just that, something like experiences are better than things. 😉

    There'll be much more episodes of such foolishness as the secular bull continues, not only in stocks both longs & shorts, but also in various markets like properties, crypto, commodities, precious metals, art, collectibles, etc. Not saying you can't make money or shouldn't participate ... but know what is "normal" & what is "abnormal".


    Re Buffett's "returns decrease as motion increases" --- doesn't really apply to himself though LOL. He practices plenty of motion like derivatives, profit taking, cutting loses, active investing, backroom deals, private equity, structured loans, etc.

    Oh I forgot, he did say "for investors as a whole". Just buy S&P500 index & sit still for 30 years. 🤣

    ReplyDelete
    Replies
    1. Spur,

      That's sacrilege!

      There are bei kambings out there who "believe" Warren Buffett is a Buy-and-Hold investor...

      To them, Warren Buffett is like "Buddha". Just sit still can oredi!



      Delete
  2. For many investors, "returns decrease as motion increases" holds true. For others, the opposite "Returns increase as motion increases" holds true. Renaissance Technologies's short-term, high motion Medallion fund surged 76% in 2020. Their other longer-term, slower motion funds tanked 22% and 33.58%.

    Many different, even contradictory ways to make money from the markets. Certain Kungfu more suited to some people. It's a long arduous path to find out and learn the right Kungfu for the right person.

    ReplyDelete
    Replies
    1. For most of us as retail; we may need more than one full market cycles of Bull-Bear-Bull-Bear or Bear-Bull-Bear-Bull to validate our kung fu.

      Delete
  3. Are you using fixed or wireless Internet?

    ReplyDelete
  4. Your service provider WIFI unstable. LOL. Time to power down and up your WIFI box

    ReplyDelete

Related Posts with Thumbnails