Sound Investment

Rock
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11 years 2 months ago #13194 by Rock

Replied by Rock on topic Re:Sound Investment

Hi relaxing, just to enlighten you, over the last 4 years my performance did not take into consideration of my cash in hand. It is base on my statement share value for begin & end of the year. In 2009 & 2010 I’m almost fully vested. In 2011 & 2012 I have increase my cash in hand to about 20%. Dividend receive are my passive income, for bills payment and holiday. Maybe to be clear about it, my $1 invested in 2009 is now about $4.

Well, I’m also a big fan of Buffett. I just want to let people know, if we invest wisely it will pay off handsomely but I am not boasting about it.

As you have mention many people take stock market like casino. I have notice many are treating stock markets like casino too. I have on 2 occasion lend money to a family friend and to a relative because they got burnt speculating in stock market. Well I did lend to them a few $k. (They did pay me back) Many who whom I know are holding onto all the losers because they sell the winners and keep the losers. They will only able to sell for some profit during the next bull market.

Abb have previously mention “Fundamental investors, on the other hand, can find it frustrating to see paper profits vanish, and then return, and then vanish.” My last post is because of this issue, to review my pofolio, to take profit & increase cash holding ready for for correction. Remember the bull run is almost 3 months. The other factor is Malaysia election probably in march 2013, May have great surprises in the election result which may affect Singapore market.
My cash holding at this stage is about 30%. It’s OK to me if this bull market continue on. As I have mention ‘greedy is a weakness.” Patient is a gift & opportunity will come. Let your money works.

God Bless
Â

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Rock
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11 years 2 months ago #13233 by Rock

Replied by Rock on topic Re:Sound Investment

In a bull market everyone can make money, even blind man also can make money, just need to trade the top 20 counters.
Nothing great about making money during bull market. In fact speculators are the one who able perform better.
The real test is; able to be a winners during the bear market. years.
I don't think anyone can match WB. He manage billion of dollars & able to achieve 20% for 47 yr annually.
My friend I have mentioned previously. He was speculating heavyly in stocks & shares. He told me "I made more than 10k daily from trading stocks & shares, I have no heart in runing my business now"
When crisis hit he not only lost his money but he was in debt. He had to sell his house & his Mecs.
'Some people said 'I can put on stop loss'.
'Some people said ' I can short the market'.
Think about it; who are the buyers when crsis hit?
Add to the short sellers, pennies will definately sink.
Take Care & God Bless

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tkimcs
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11 years 2 months ago #13234 by tkimcs

Replied by tkimcs on topic Re:Re:Sound Investment

Hi Rock,
What you say is very true. I hope one day to be a value investor like you, good for bull market and equally good for bear market.
KC

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relaxing
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11 years 2 months ago #13257 by relaxing

Replied by relaxing on topic Re:Sound Investment

Hi Rock, it’s nice of you to warn investors ( esp newbies ) re share speculation, but nothing much will change as people always want to make easy money fast and retire from work. Those who follow tips blindly will eventually lose. Hope they don’t get hurt too badly.
Though stock market can be dangerous place for gamblers,Â I Â think property speculation is even more risky because of the high loan quantum. Â S’pore has the world’s highest home ownership at 89%. Â With 200K new homes coming on stream by 2016 ( plus present unsold stocks ) and projected low population growth, wonder who will buy or rent them ? Â At risk are those who over geared to speculate on private properties. Â The knockout punch will be when global interest rates rise.
Low interest rates have been inflating property prices in many countries ( ref link below ). Â Â Locals who are now switching to overseas properties should do their homework and not just listen to sales agents. Â Investors should study foreign ownership laws (which are ever changing ), tax returns , exchange risksÂ etc. Â I am in no hurry to jump back into properties overseas Â though I am watching closely. Â Interesting times ahead.
www.economist.com/news/finance-and-econo...are-still-dumps-home

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Rock
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11 years 2 months ago #13260 by Rock

Replied by Rock on topic Re:Sound Investment - Speculation Maths

Â
Speculation Maths

Speculators - Bull Market
Chase small $
Result: gain small $ minus commission
Chase big $$$$$
Result: gain big $$$$$ minus commission

Speculators - Bear Market
Chase small $
Result: lost small $ plus commission
Chase big $$$$$
Result: lost big $$$$$ plus commission

Final Result: lost $$$$$$$$ plus lost his pants Speculation is like gambling, either win all or loss all. (Head you win, tail you loss)

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Rock
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11 years 2 months ago #13280 by Rock

Replied by Rock on topic Re:Sound Investment

Heavy rains remind us of challenges in life. Never ask for a lighter rain.
Just pray for a better umbrella. That is attitude.

When flood comes, fish eat ants and when flood recedes, ants eat fish.

Only time matters. Just hold on, God gives opportunity to everyone! Don't let pride, anger, greed & fear get in your way. Always be thankful & never regard your action. Pray for godly wisdom. Let the fruits of patient and self-control bear for in our life.

May all forummers of Nextinsight have a good CNY ahead. And blessed with abundance of health & also richly rewarded. Remember to bless the less fortunate.
Â
God Bless

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