Author: Create Wealth Through Long-Term Investing and Short-Term Trading

Stock-Pickers Don’t Know How to Sell

Read? Stock-Pickers Don’t Know How to Sell Uncle8888’s own experience on short-term trading long-term investing is mixed feeling. Buy, Hold or Sell? There is no right Method in the market; but your net profit after spending decades in the stock market must be RIGHT in your bank account! Theory is just theory. So don’t crack your head so hard to see which theory is the best. Counting your winning $ is real thing and that is the best outcome! Holding for decades! Buy and Sell. Buying back is also bloody...

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Compound Interest is not the same as Compound Returns (4)

Read? Compound Interest is not the same as Compound Returns (3) Every time when Uncle8888 read something similar like this in the cyber world .. he smiles! “However, many forget the power of compounding when it comes to investing, helping you achieve financial freedom at an earlier age. Enjoy your retirement, start investing today!” Some folks need to learn from Crash Got Sound that compounding investment return is NEVER the same as compounding interest as savers! Albert Einstein reportedly said it. “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays...

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Warren Buffet Was In The Earn More Camp

Read? How Rich Was Warren Buffett at Your Age? Read? Warren Buffet Has Huge War Chest CW8888: Warren Buffet was in the Earn More camp! What did you really learn from Warren Buffet? Next time; any “Gurus” who are smoking you on Warren Buffet’s investing techniques. Show them this blog post. LOL! Even in our local investment blogopshere; those bloggers who showed you big fat dividends are or were from earn more camp. After graduating college, Buffett tried repeatedly to land a job with mentor Benjamin Graham — even offering to work for free — but had to return to Omaha...

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Two Bank Accounts? No, You may need Four! – (6)

Read? Two Bank Accounts? No, You may need Four! – (5) Talking about mental accounting on personal finance and budgeting? Uncle8888 is big on mental accounting to avoid sequence-of-returns risk for the next two years. The big idea here is to spend what has been “earned” and not to spend future money that is not “earned”! Cash in this bank account has been “earned” and will be rotting to fund household expenses for 2019/2020 With one dedicated bank account for household expenses; whenever he looked at the account balance; he won’t feel rich enough to overspend or feel that poor to under...

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Building Resilient Net Worth Or Resilient Investment Portfolio

As wealth builder preparing for FI, FIRE, FIRe or full retirement; do you prefer to build up your wealth based on : ( 1) resilient net worth providing cash flow over future market and economic cycles or (2) large resilient investment portfolio providing dividend income over future market and economic cycles. Both methods should also aim to avoid sequence-of-returns risk to build sustainable retirement income for life! Uncle8888 observes that most investment bloggers are on method (2) camp. Right? Which method has better chance to avoid sequence-of-returns risk? (1) or...

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Skin In The Game???

To have “skin in the game” is to have incurred risk (monetary or otherwise) by being involved in achieving a goal. In the phrase, “skin” is a synecdoche for the person involved, and “game” is the metaphor for actions on the field of play under discussion. How much skin you have in the Game? When you failed; what is the degree of  skin burn you will suffer? It is 3rd degree or more skin burn when you failed that is skin in the Game! Sometime Uncle8888 will ask questions and the replies from some investment bloggers or retail investors:...

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#3 – It is easier to succeed as an investor than a trader

Read? 7 Money Secrets from ex-editor of The Business Times, Mano Sabnani It is possible to succeed as an investor or trader, but I believe it is much better to be an investor. This has always been a contentious point – investing vs trading. Investing is usually defined as having a long-term horizon while using fundamental analysis as a core investing approach. Trading on the other hand often refers to short-term, higher frequency of entries and exits from the markets. Traders rely mainly on technical analysis or chart reading to make their decisions. Having been on both sides of the...

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Still Making Good Gross Profits Even For Buying Resale 4 Rm HDB Flat More Than 15 years Ago.

During HIP; Uncle8888 has to hang around and sometime sitting at downstairs bench and chatting with his neighbors whose units also undergoing HIP. One neighbor said Uncle8888 is lucky to make lots money if he sell his 4 rm HDB flat as he bought it cheaply at $55K. This neighbour bought it at resale price at $365K more than 15 years. A search at PropertyGuru showed up one completed similar 4 rm HDB flat at $428K in the same location. Hmm .. this neighbour still make gross profit of 17% over cost and enjoying free rental for more than...

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Your CPF is like a Schizophrenic Prostitute. Do You Know How To Have Great Sex With This Schizophrenic Prostitute ???

Read? Your CPF is like a Schizophrenic Prostitute. c) To resolve this prostitute’s schizophrenia, transfer CPF-OA to CPF-SA instead. A quick way of resolving this schizophrenia is to transfer your CPF-OA to your CPF-SA. This is telling the prostitute that she is not expecting to do any housework so long as she services you well. In return, you end up with the best possible risk-less service possible in the Singapore economy at 4%. The best time to perform the transfer is when you are young. You have more years to enjoy the 4% compounding. After all, the best times of...

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Something Behind Our Luck Factor And Chance In Randomness Environment Where We Have No Control

Uncle8888 may have learnt something over the past two years roaming across the island of Singapore. What is that something behind our luck factor and chance in the world of randomness where we have no control over the events happening? This may be also true in long-term investing where we have no control and cannot foresee the FUTURE decades ahead of us! Uncle8888 bother to pick up coin even it is 5 cents. That is 5% yield on $1 investment capital and FOC! Hmm .. okay. Just stop, blend down and pick up. In 2019 When Uncle8888 has realized...

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How I Accumulate $1M In CPF OA! (3)

Read? How I Accumulate $1M In CPF OA! (2) Uncle8888 became CPF OA Millionaire without a single cent of voluntary cash top up to his CPF OA during his full-time job as employee from Aug 1977 to Sep 2016  i.e. 39 years of mandatory CPF OA contributions. This is how he achieved $1M in CPF OA! 50% from mandatory CPF OA contributions as full-time job as employee for 39 years and cumulative CPF OA interests from 1977 to 2004 and the other 50% coming from (a) 20% from cumulative  CPF OA interests from 2005 to 2018 and (b) 30% from CPFIS Net Refund i.e....

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Have We truly Understand How Inflation Affects Us And Our Retirement Planning? (2)

Read? Have We truly Understand How Inflation Affects Us And Our Retirement Planning? So far based on Uncle8888’s past 17 years (2002 to 2018) actual data points; he is not too concerned on inflationary impact on future household expenses as he still has some fat to trim during those difficult years. He is actually spending 8% below the projected multi-years inflationary rate at 2.5% over 17 years since 2002. Probably, inflation will impact more on those who are already spending at their lowest possible living costs so there is not much fat to trim during hard times. How to beat...

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Current Net Worth After 39 Years Of Earned Income After Tax As Full-time Employee And 19 Years As Retail Investor

Read? Speaking And Sharing With Track Records!!! (2) 39 years of earned income after tax as full-time employee 1. 1985 to 2016 is actual earned income after tax taken from IRAS Income Tax notice of assessment 2. Aug 1977 to Dec 1984 is estimated earned income after tax by working backward based on 1985 number. AND Jan 2000 to Dec 2018, 19 years as retail investor across market cycles. Can we FI, FIRE or FIRe based on our investment gains rather from savings from earned income? How many investment bloggers manage to do it mainly from investment gains? Do you happen...

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Cash Flow : Rental Income From One Investment Property vs. Dividend Income From Portfolio Of Stock? (Refresh)

Real people. Real ex-colleagues. Real retail investors! Not views from commercial vested “Gurus” Read? Cash Flow : Rental Income From One Investment Property vs. Dividend Income From Portfolio Of Stock? Stocks or properties? It depends on your flow capacity of ALL your buckets or taps. Is your rental income one of the few taps or the main tap providing cash flow during...

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