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

Bonds vs Stocks. Age is not the important factor, money is

Read? Bonds vs Stocks. Age is not the important factor, money is As you can see in these examples, age is not the most important factor. The amount of money is the most important factor. Where do you fit in? What are your special circumstances? How much money do you have to support the life you want to live? How much money do you want to leave behind? Hmm … in Uncle8888’s plain and simple thinking on long-term investing is...

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Risk and Leverage are subjective. Knowing Enough!!!

Read? Risk is subjective Uncle8888 doesn’t fight Mr Market with both arms. He is one arm swordsman. Why need leveraged instrument in margin trading for shorting or leverage up for higher yield on own investing capital e.g. assets pledging to open overdraft trading with brokers. He doesn’t have to polish his trading Craft for better Entries and Exits. He is Panda or Koala in the stock market; but his food is still not extinct yet! Knowing enough! Money is enough! Capital is enough! Risk is enough! Parroting Buffet …. it is insane to risk what you have and need in order to obtain...

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Illusive Profits During Bullish Market But Permanent Losses In Bear Market

If you have NOT been through at least one full market cycle of Bull-Bear-Bull or Bear-Bull-Bear; you may not understand what Uncle8888 is saying … Illusive profits during Bullish market but permanent losses in Bear market. Over the years Uncle8888 have many coffee sessions with Readers/Starfishes who form the two groups of retail investors: One group are newbies who have started out investing/trading for one or more years; but they didn’t not achieve the investment return as expected. So they want to find out from veterans who have been in the market; and hopefully they can learn from veterans’ experiences...

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Counting The Opportunity Cost Of Rotting Cash

Read? Investment Portfolio Draw-down Across Market Cycles Cash is rotting due to inflation so the opportunity cost of holding is to beat inflation rate. Uncle8888 is assuming 2.5% yearly inflation rate. His opportunity cost for rotting cash in his war chest is …. the number doesn’t look too scary to beat it. To generate at least 68% ROC on war chest by 2030 i.e. another 12 years for the next Big Bear!...

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Conviction? Hoot Tua Tua Or Let Them Grow Slowly And Steady To Tua Tua???

Read? No One Can Teach You Conviction. You need to Acquire It Yourself Ask any retail investors who have average down their stocks until recovery to break even is near impossible. Are they ever short of conviction? Uncle8888’s money management and risk management limited exposure to any single stock to not more than 10% of his total capital since inception in Jan 2000. From the chart below; where is his conviction over the last 18 years? Hoot tua tua or Let it be and then tua...

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Buffett has one big investing lesson in this year’s annual letter: Never borrow money to buy stocks

Read? Buffett has one big investing lesson in this year’s annual letter: Never borrow money to buy stocks CW8888: Even you are the world’s greatest investor; Mr. Market no hew you during market crash! Warren Buffett believes investors should avoid using borrowed money to outperform. The Oracle of Omaha explained the perils of using debt and leverage in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday. “Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by...

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Seductive Yield Trap Or Yield Hog???

We need language Master like SMOL know the difference. Right? If you look closely from left to right year on year and always wishing for more to come. Seductive yield trap or yield hog? After 14 years; DBS also becoming sexy yield of 16% from 2018 and sustainable for the next few years. On the other hand; we have When a Giant Gain Causes Pain (4) . Investing may be simple but never easy to handle emotionally! It will be continuous struggle even in winning game! Why? Many of us are not so mechanical or Automatic. Time for Robo investing? LOL!...

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How Scary Is Inflation???

Financial advisers love to scare their potential clients on inflation! So scary meh? For younger folks; did you see your parents, grand-parents and great-grand-parents broke down due to inflation? Honestly; Uncle8888 since started working in Aug 1977 till Sep 2016; he didn’t really feel the pains of inflation hitting him hard; but the real heartache came from seeing his investment portfolio collapsing so fast! LOL!...

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8 memorable quotes from Warren Buffett’s newest shareholder letter

Read? 8 memorable quotes from Warren Buffett’s newest shareholder letter These three quotes; Uncle8888 can relate better. No parroting! Really doing them! 2. “But Charlie and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need.” Buffett and Charlie Munger’s aversion to using leverage may have “dampened” their returns over the last 53 years, but the long-term focused investors don’t seem all that bothered by it. 5. “When major declines occur, however, they offer extraordinary opportunities to those who are not handicapped by debt.” Leverage...

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Investment Portfolio Benchmarking Among The World’s Well Known Investors – Updated on Warren Buffet for 2017

Read? Investment Portfolio Benchmarking Among The World’s Well Known Investors – Updated on Warren Buffet for 2016 How to be like Warren Buffet? Steady, Steady. Pom Pi Pi. 19.1% CAGR over 53 years! Read? Annual Letter 2017 is out! Read? 2017 Full Year Investment Performance Report Warren Buffet 2000 to 2017 : 10.2% CW8888 2000 to 2017 :  6.8%...

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How to become rich in stocks??? (31)

Read? How to become rich in stocks??? (29) Peter Lynch: You don’t need a lot in your lifetime. You only need a few good stocks in your lifetime. I mean how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot. I think the secret is if you have a lot of stocks, some will do mediocre,  some will do okay, and  if one of two of ’em go up big time,  you produce a fabulous result.   And I think that’s the promise to some people. Some stocks go up...

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Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (6)

Read? Yield of dreams: Investors have “a once in a lifetime opportunity” in blue chips (5) SembCorp Ind cuts its final dividend from last year $0.04 to $0.02. Total dividend = $0.05 Over the last 17 years as Dividend “Warrior” or “Lover” or “Patient”??? The lowest dividend yield on investment cost is still at the time of purchase through out the past economics and market cycles. Kep Corp (2001/2002) : 11.4% SemCorp Ind: (2002) : 6.1% DBS: (2003) : 3.5% Uncle8888 believes in himself that is BOTH market timing and time in the market are NOT mutually exclusive and are indeed important...

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