*Official* SGXcafe Thread

[TheIntelligentInvestor]

i am starting to learn not to let emotion affects my judgement and reasoning. I see price dip now as opportunity to add more. I try to sell only if the company fundamental has changed. Still making mistakes here and there, but more important is to learn from them. Lastly I have prepared for a 50% drop in my portfolio, in a worst case scenario.

 

[lbs]

50% drop in portfolio.... i doubt anyone can really mentally prepare himself or herself for that... ...

 

[havetheveryfun]

50% drop in portfolio.... i doubt anyone can really mentally prepare himself or herself for that... ...

why cannot ? that's why you keep a warchest ready at any time, it is much easier that way to mentally convince yourself to prepare yourself for such a drop that way provided you have confidence that the companies will bounce back

 

[starfish.starfish]

why cannot ? that's why you keep a warchest ready at any time, it is much easier that way to mentally convince yourself to prepare yourself for such a drop that way provided you have confidence that the companies will bounce back

It depends on your absolute amount too. If invested 5k then 2.5k is not as painful as 500k left 250k.....

 

[wahkao3]

i am starting to learn not to let emotion affects my judgement and reasoning. I see price dip now as opportunity to add more. I try to sell only if the company fundamental has changed. Still making mistakes here and there, but more important is to learn from them. Lastly I have prepared for a 50% drop in my portfolio, in a worst case scenario.

me is 40% ......
50% pain pain

 

[wahkao3]

50% drop in portfolio.... i doubt anyone can really mentally prepare himself or herself for that... ...

my simulations indicate that on the average , I will experience around 60% drawdown at some point of my investment

if i diversify into 80 stocks, maybe not so bad. become 20%

i know that by taking this max draw down, i can push my returns up so its a good risk worth taking

 

[focus1974]

50% drop in portfolio.... i doubt anyone can really mentally prepare himself or herself for that... ...

really depends on the circumstances..

Which one you think will handle it well..which one will have sleepness nights... which one will cut loss... which one will jump?

Close your eyes.. imagine you were that person... what would you be feeling and what is your response to a 50% cut in portfolio value. Or better... think of 20% first, then 30%, then 40%... which point will you buay tahan and cut..

1) 20s just working and building stock portfolio using his active income. Portfolio size is less than the annual salary he gets. Not much financial commitment (like family, mortgage).

2) 30s working and married. Portfolio size is 5 years of his annual salary. Heavy financial commitment of family and mortgage.

3) 40s working and increasing instability in the job (example, once retrenched hard to find a equally good paying job - please dont tell me of the satki people who are top echelons who will find even higher paying jobs. Let's talk about the 80%). Could be heavier financial commitment or lesser(depending on children age and mortgage payoff). The portfolio size is 10years of his annual salary.

4) 50s nearing retirement and increased probability of retrenchment and lower paying jobs. Hopefully no more financial commitments. Portfolio size is 15 years of his annual salary.

5) 60s already retired and no more ACTIVE income. Hopefully no more financial commitments but increased expenditures on healthcare. Portfolio size is 20years of his annual salary.Dependent on the POrtfolio for income.

6) for person 3,4,5 , please replace the portfolio size to become 5years of his annual salary. This is the retirement money.

7) for person 3,4,5, please replace the financial commitment to still having mortgage to pay off. (or a atas lifestyle to upkeep).

 

[focus1974]

if i diversify into 80 stocks, maybe not so bad. become 20%

i know that by taking this max draw down, i can push my returns up so its a good risk worth taking

it depends on your diversification ..

if you diversified across the industries in a SINGLE COuntry Exchange..

Are you sure you will be getting 20% drawdown max when the stock market crashes 50%? STI index(bluechips)drop 50%, pennies will drop to 90%.. right?

if you do diversified across 2 or 3 world exchanges, in a global crisis, everyone drop together.. Circuit breaker every day.. you think sitll 20%?

 

[Gnoixed]

Day Change = (+1.62%)
P&L = (-12.83%)
P&L + Dividends = (-12.54%)
P&L + Dividends + Closed = (-9.73%)

 

[potNPan]

Day Change = +36 (+0.25%)

 

[SeekingPrivateReturns]

Day Change (-1.52%)


whelp, maybe taking the move to have a stake in oil&gas was a bit too early.

 

[wahkao3]

it depends on your diversification ..

if you diversified across the industries in a SINGLE COuntry Exchange..

Are you sure you will be getting 20% drawdown max when the stock market crashes 50%? STI index(bluechips)drop 50%, pennies will drop to 90%.. right?

if you do diversified across 2 or 3 world exchanges, in a global crisis, everyone drop together.. Circuit breaker every day.. you think sitll 20%?

20% is based on the median of a normal distribution based on historical records

this 20% can vary

 

[potNPan]

Day Change = +8.5 (+0.06%)

 

[Gnoixed]

Day Change = (-0.02%)
P&L = (-16.18%)
P&L + Dividends = (-15.85%)
P&L + Dividends + Closed = (-11.86%)

 

[Gnoixed]

Day Change = (+0.89%)
P&L = (-15.44%)
P&L + Dividends = (-15.11%)
P&L + Dividends + Closed = (-11.12%)

 

[serious.boh]

Fear is the only thing that's stopping individual to move forward. Warren buffett being the greatest investor of our time said that,"Risk comes from not knowing what you're doing."

If we fear of the company that we are buying, it shows that we do not understand the company enough. When investing, Warren buffett makes no qualms about visiting the organization and talk to their staff to know more about the company that he is investing. He wants to know the company's process, competitiveness and staff morale.

When we know the company inside out, we can invest without fear.

Talk cock. Warren buffet trading volume can move the market. We small players are in the hands of the big players. Sorry for taking it too literally, retail investors can only know so much. Warren buffet is considered institutional investors. Retail investor can't adopt most of his strategies due to lack of access to insider-info.

 

[wahkao3]

Talk cock. Warren buffet trading volume can move the market. We small players are in the hands of the big players. Sorry for taking it too literally, retail investors can only know so much. Warren buffet is considered institutional investors. Retail investor can't adopt most of his strategies due to lack of access to insider-info.

actually, me as small players have more competitive advantage over big players
i rather be a small palyer

if warran buffet is a small player he will exploit this advantage and he can get 40% cAGR

 

[Daimon]

The Secret is not to buy house or car. Put the money into your investment. Rent or stay with parents. Then money will compound. A house is a liability.

really depends on the circumstances..

Which one you think will handle it well..which one will have sleepness nights... which one will cut loss... which one will jump?

Close your eyes.. imagine you were that person... what would you be feeling and what is your response to a 50% cut in portfolio value. Or better... think of 20% first, then 30%, then 40%... which point will you buay tahan and cut..

1) 20s just working and building stock portfolio using his active income. Portfolio size is less than the annual salary he gets. Not much financial commitment (like family, mortgage).

2) 30s working and married. Portfolio size is 5 years of his annual salary. Heavy financial commitment of family and mortgage.

3) 40s working and increasing instability in the job (example, once retrenched hard to find a equally good paying job - please dont tell me of the satki people who are top echelons who will find even higher paying jobs. Let's talk about the 80%). Could be heavier financial commitment or lesser(depending on children age and mortgage payoff). The portfolio size is 10years of his annual salary.

4) 50s nearing retirement and increased probability of retrenchment and lower paying jobs. Hopefully no more financial commitments. Portfolio size is 15 years of his annual salary.

5) 60s already retired and no more ACTIVE income. Hopefully no more financial commitments but increased expenditures on healthcare. Portfolio size is 20years of his annual salary.Dependent on the POrtfolio for income.

6) for person 3,4,5 , please replace the portfolio size to become 5years of his annual salary. This is the retirement money.

7) for person 3,4,5, please replace the financial commitment to still having mortgage to pay off. (or a atas lifestyle to upkeep).

 

[ChiuSiaoRiao]

The Secret is not to buy house or car. Put the money into your investment. Rent or stay with parents. Then money will compound. A house is a liability.

I need quote this and share on my social media. Need to wake my friends idea.

Sent from Asus ASUS_Z00AD using GAGT

 

[havetheveryfun]

The Secret is not to buy house or car. Put the money into your investment. Rent or stay with parents. Then money will compound. A house is a liability.

means don't get married and have kids ?

but if you are going to pay as much rent as you would if you have a mortgage, why not get the house instead?