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

OPM : Other People’s Money

Leverage (using OPM) through borrowing or margin is fun as you may achieve higher ROC on your own capital invested after  deducting the cost of leverages. But; leverage is also known as double edged sword! Another way of using OPM and feeling shiok and without the threat of double edged sword is …. Read? Free Shares From ComfortDelGro Take back your own invested capital and let the profits or OPM from the market continue to run and collect dividends. Shiok man! When your account size gets larger; lagi lagi shiok or sibei shiok as it is OPM in the market! ...

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Great Inequality? Where? Stock Market?

Hmm … stock market! Great inequality happens in the stock market! Inequality in account size! Inequality in access to financial materials, insiders and Management! Inequality in access to high quality and timely financial reports Inequality in access to … blah blah blah As retail traders or investors; we don’t have any serious doubts with these inequalities in the market...

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Fundamental Analysis : As Outsiders How Far Into The Future Can We Analyze Company Business?

Read? Part-Time And Free Lance Jobs (2) Somehow this thought came into Uncle8888’s investing mind on fundamental analysis as retail investors. As outsiders how far into the future can we as retail investors analyze company’s business/fundamental based on publicly disclosed materials and quarterly financial reports. We can analyze the past but how far into the future? Uncle8888 started this 8 HWW (Hours Work Week) last June 2017with 16 outlets in 8 retail malls in Hougang, Orchard, Bugis+, Doby Ghaut and Raffles City. In less than one year into this job; he realized tough competition in F&B space. Jun 2017 : 16 outlets in...

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My Own Psychology Of Losses: Losing Money And Deploying Cash Is Not The Same!

From 2000 to 2003 – two crises Sep 11 WTC Attack in 2001 and SARS in 2003 Uncle8888 came to the stock market at the wrong market timing with his large war chest i.e. 23 years of saving including CPFIS at age of 44. STI was at its peak in Jan 2000 and then crashed towards its low in Sep 2001. The market recovered in 2002 and then crashed again in 2003 due to SARS. Those days from Jan 2000 to 2003; he didn’t have ill or bad feeling on paper losses as he was in mindset of deploying...

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Another Reason To F.I.R.E or F.I.R.e After 40s

According to one of the 3 authors of the study, Colin McKenzie, professor at Keio University, the level of intellectual stimulation could depend on working hours. Even though work is a double-edged sword that stimulates brain activity, working more than forty hours per week can result in stress and fatigue that may have a detrimental impact on cognitive functions. To sum up, full-time work can have a negative impact on the brain of people aged over forty. Read? Experts Claim that People Over 40 Shouldn’t Work More than 40 Hours per...

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Business Leverages And Personal Leverages. (2)

Read? Business Leverages And Personal Leverages. It is world between personal bankruptcy and private limited/limited company bankruptcy! Don’t anyhow hor! Personal bankruptcy may drag in the whole family together to suffer! What do we know about Donald Trump’s four bankruptcies? Trump describes these bankruptcies as if no one was hurt in the process, except high rollers and sharks. He says that he has started hundreds of companies, but only used bankruptcy proceedings four times...

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Unlocking SRS At 62 And Avoiding Being Taxed

Now Uncle8888 becomes low income earner  who doesn’t have to pay any tax! This Sep 2018 he will unlock his SRS and draws out $12K per year over the next few years to avoid paying any tax. That is the primary objective of SRS! Tax deduction! SRS will be his source of fixed income upon 62 and then RA upon 65. $12K from SRS and $24K from CPF OA & SA...

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As Long Term Investors; We Will Do Well??? (2)

Read? As Long Term Investors; We Will Do Well??? Bruce3 May 2018 at 10:48:00 GMT+8 Uncle8888, 7.3% over 18years, HUAT! from the info i have: a) STI started Jan 2000 at 2231, 3573@2018/04/16, CAGR=2.6% (this however w/o dividend contribution, if assume there is so-called ‘pseudo’ 3% yield avg, CAGR is 5.6%) Uncle8888’s skill not bad, beat index a lot. b) STI ETF started in 2002 April(when STI stood at 1730), based on its website info: till 2018/04/12, 10y, 4.36%,  since inception(11 Apr 2002) 16yr,7.52%(this includes dividend contribution) it shows it is difficult to beat ETF fund, even though it is...

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Counting The Opportunity Cost Of Rotting Cash (2)

Read? Counting The Opportunity Cost Of Rotting Cash ” If you have a worry problem, do these three things:  1. Ask yourself: “What is the worst that can possibly happen?”  2. Prepare to accept it if you have to.  3. Then calmly proceed to improve on the worst.”  (Carnegie 49) Is having a large war chest a serious drag on our investment portfolio performance? Look left. Look right. Look centre. Left, right, and centre. Uncle888 can’t really figure out how serious is rotting cash affecting his investment portfolio performance? His investment performance is largely determined by Mr. Market at Point...

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Now Warren Buffet is affected by market volatility???

Read? Berkshire Hathaway reports 48.7% first quarter operating gain as shareholders prepare to meet  CW8888: Hmm … Now Warren Buffet is affected by market volatility as the Rule of the Game has changed.  Because of accounting rule changes, however, the conglomerate recorded a first quarter loss of $1.1 billion, compared to net income of $4 billion in last year’s first quarter The accounting changes meant Berkshire had to write down the value of its investment portfolio by $6.3 billion in the first quarter Berkshire Hathaway reported a 48.7 percent first quarter gain in operating earnings, to $5.3 billion, as its insurance...

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Can We Learn From Warren Buffet In His 2018 AGM???

In his annual letter to shareholders in February, Buffett warned that the new reporting rule would produce some “truly wild and capricious swings.” He also noted that “gyrations of that magnitude will swamp the truly important numbers that describe our performance.”  In a statement accompanying today’s earnings report, Buffett, the firm’s chairman and CEO, urged investors to focus on Berkshire’s operating businesses and not earnings results based on fluctuations in its nearly $173 billion stock portfolio. He says the stock portfolio can see fluctuations of up to $10 billion in any given quarter. Focus on operating business i.e operating income...

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The Most Important Rule of Investing???

This Rule : Never invest money that you can’t afford to lose or willing to lose! Sound investment advice??? Hmm …. What if you have already lost what you can afford or willing to lose? Do you have adequate capital to recover from these losses? How about changing to this Rule? Never invest money that you can’t afford to lose or willing to lose until you have adequate war chest to recover...

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