Meet Addled Aksel.
The world’s worst “investor”. After graduating summa cum laude from university, he thinks he’s the smartest guy in the room. He starts his investing research by looking at the Straits Times Index’s historical data. “It’s so simple!”, he exclaims. You just need to buy when the chart starts sliding, I don’t know what’s so difficult about this investing stuff. (Forgetting that you can’t tell when the bottom is in real time).
So he insists on saving up his money and buying when the “time is right”. But like most people who believe they can time the markets, he only buys at the peak of bull run.
Thankfully, Addled Aksel had a very simple savings plan, He decided to save 200 a month and double his savings every 10 years. So, 200 in the 1990s, 400 a month in the 2000s and 800 from 2010 on. He’s ......