Without a single cent additional capital injection since investment portfolio on Jan 2000; Uncle8888 has survived through cycles of Bulls and Bears as shown in one picture!
Read? Cut losses - The Truth, The Pain, and The Chance!
Read? Investing Made Simple by Uncle8888 (18)
Read? Investors, learn to play your cards right
Posts
During big bears, indexes can go back in time to 4 or 5 years ago.
ReplyDeleteHang Seng today is like 6 yrs ago! ;)
(ok ok, with dividends not so bad ... but still bad! lol)
Make sure to invest in companies & things that have good chance of recovery.
Spur,
DeleteMoney lost can recover; time lost is forever gone.
The wonderful effects of "compounding" don't work so well if we are always waiting to break-even one day...
Every investor makes mistakes & goes through tough times, but not every investor recovers.
ReplyDeletePS: I believe Cathie Wood will recover, but to paraphrase Keynes ... her ETFs may be delisted before it happens.
DeleteKris Energy bankrupted before crude oil hit $100.
DeleteActually, we need more spare money to be able to recover. War chest or contingency fund is critical to survive or recover.
Hello CW,
DeleteAgree with your above statement. Just as important, we need to be aware whether the company will survive a downturn or not. Those with large debt burden, little cash and limited revenue will likely go belly up first.
CW,
DeleteIt usually takes a full bull/bear cycle for us "veterans" to realise our follies...
Remember our first bull market?
Would we listen to well intentioned advice from old timers to rebalance and raise cash?
No right?
The biggest lament is we should have bought MORE!
We hate cash rotting not doing anything when we are doubling or tripling our portfolios!!!
More gung-ho ones will even use margin and leverage to the gills... What can go wrong?
Only after a more than -50% hair-cut will we discover Risk Management... And that's if we still standing!
That's why in the next bull market, we will underperform youths who don't know what cannot be done ;)
And the cycle repeats.
Bull market will eventually come back but an investor has to make sure he survives the bear market with enough chips left to ride the bull market when it's back.
ReplyDeleteHi temperament,
DeleteIf most things are going down, then some cash rotting somewhere is better. Cash rotting 7% from inflation is still better than crashing 30% from stocks or 50% from crypto.