A Newbie Guide to Investing

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#71
(09-04-2013, 09:42 AM)CityFarmer Wrote:
(09-04-2013, 09:34 AM)KopiKat Wrote:
(09-04-2013, 09:29 AM)CityFarmer Wrote:
(09-04-2013, 09:21 AM)egghead Wrote:
(09-04-2013, 08:54 AM)paullow Wrote: u can't add a tangible value for buying gifts for love ones, having a nice dinner, going for a nice getaway. of coz it costs money to do all that but its the smile on the opposite party which is worth a hundreds times more than that spent or that compounded for 30yrs.

That is a timely reminder.

Diamond ring - $8k;
Investment of $8k compounded at 8% over 30 years - $80k;
Smile on wife's face - priceless Big GrinBig Grin

I am thinking that probably we can also get similar smile on your wife's face with $8k worth of company's shares (e.g. OCBC) Big Grin

After a lifetime of brainwashing by adverts that 'A Diamond is a Girl's Best Friend', you may have a hard time convincing her that 'OCBC Shares are a Girl's Best Friend'....Tongue
Perhaps it'll help to show egghead's projection that it can grow 10x over 30 years whereas the diamond will not....Cool

It depends on the packaging...e.g. OCBC is also forever (hopefully), and she can see it everywhere in Singapore, Malaysia etc. It will give more reassurance of love, compare with a diamond ring which she does not wear most of the time. Big GrinBig Grin

Give Tiffany or Coach shares loh... high class leh.
Reply
#71
(09-04-2013, 09:42 AM)CityFarmer Wrote:
(09-04-2013, 09:34 AM)KopiKat Wrote:
(09-04-2013, 09:29 AM)CityFarmer Wrote:
(09-04-2013, 09:21 AM)egghead Wrote:
(09-04-2013, 08:54 AM)paullow Wrote: u can't add a tangible value for buying gifts for love ones, having a nice dinner, going for a nice getaway. of coz it costs money to do all that but its the smile on the opposite party which is worth a hundreds times more than that spent or that compounded for 30yrs.

That is a timely reminder.

Diamond ring - $8k;
Investment of $8k compounded at 8% over 30 years - $80k;
Smile on wife's face - priceless Big GrinBig Grin

I am thinking that probably we can also get similar smile on your wife's face with $8k worth of company's shares (e.g. OCBC) Big Grin

After a lifetime of brainwashing by adverts that 'A Diamond is a Girl's Best Friend', you may have a hard time convincing her that 'OCBC Shares are a Girl's Best Friend'....Tongue
Perhaps it'll help to show egghead's projection that it can grow 10x over 30 years whereas the diamond will not....Cool

It depends on the packaging...e.g. OCBC is also forever (hopefully), and she can see it everywhere in Singapore, Malaysia etc. It will give more reassurance of love, compare with a diamond ring which she does not wear most of the time. Big GrinBig Grin

Give Tiffany or Coach shares loh... high class leh.
Reply
#72
(08-04-2013, 07:28 PM)d.o.g. Wrote: Furthermore, the popular notion of passive income is that you do nothing while the cheques roll in. This is nonsense. Properties need maintenance, and a stock portfolio has to be updated as companies grow or go bust. Even a mineral royalty will run out one day, so some of the cash cannot be spent and must be reinvested. Rich people with lots of passive income actually spend a meaningful amount of time and effort trying to maintain that level of income, whether by upgrading/switching properties, rebalancing a stock/bond portfolio, or looking for more investments into which to deploy their cash.

100% agree.
i realise sometime ago, as long as you have the next breath, you can't retire, whoever you are. That's why i always stress, investment in stock market is for lifetime until you can't do it anymore. Therefore no hurry; though may have a lot of "sweat". Ha! Ha!
Shalom.
[/quote]
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#72
(08-04-2013, 07:28 PM)d.o.g. Wrote: Furthermore, the popular notion of passive income is that you do nothing while the cheques roll in. This is nonsense. Properties need maintenance, and a stock portfolio has to be updated as companies grow or go bust. Even a mineral royalty will run out one day, so some of the cash cannot be spent and must be reinvested. Rich people with lots of passive income actually spend a meaningful amount of time and effort trying to maintain that level of income, whether by upgrading/switching properties, rebalancing a stock/bond portfolio, or looking for more investments into which to deploy their cash.

100% agree.
i realise sometime ago, as long as you have the next breath, you can't retire, whoever you are. That's why i always stress, investment in stock market is for lifetime until you can't do it anymore. Therefore no hurry; though may have a lot of "sweat". Ha! Ha!
Shalom.
[/quote]
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#73
coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.
Reply
#73
coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.
Reply
#74
(09-04-2013, 10:01 AM)Temperament Wrote:
(08-04-2013, 07:28 PM)d.o.g. Wrote: Furthermore, the popular notion of passive income is that you do nothing while the cheques roll in. This is nonsense. Properties need maintenance, and a stock portfolio has to be updated as companies grow or go bust. Even a mineral royalty will run out one day, so some of the cash cannot be spent and must be reinvested. Rich people with lots of passive income actually spend a meaningful amount of time and effort trying to maintain that level of income, whether by upgrading/switching properties, rebalancing a stock/bond portfolio, or looking for more investments into which to deploy their cash.

100% agree.
i realise sometime ago, as long as you have the next breath, you can't retire, whoever you are. That's why i always stress, investment in stock market is for lifetime until you can't do it anymore. Therefore no hurry; though may have a lot of "sweat". Ha! Ha!
Shalom.

China people believe that Mahjong game help to avoid dementia. I believe stock investment has the same effect. Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#74
(09-04-2013, 10:01 AM)Temperament Wrote:
(08-04-2013, 07:28 PM)d.o.g. Wrote: Furthermore, the popular notion of passive income is that you do nothing while the cheques roll in. This is nonsense. Properties need maintenance, and a stock portfolio has to be updated as companies grow or go bust. Even a mineral royalty will run out one day, so some of the cash cannot be spent and must be reinvested. Rich people with lots of passive income actually spend a meaningful amount of time and effort trying to maintain that level of income, whether by upgrading/switching properties, rebalancing a stock/bond portfolio, or looking for more investments into which to deploy their cash.

100% agree.
i realise sometime ago, as long as you have the next breath, you can't retire, whoever you are. That's why i always stress, investment in stock market is for lifetime until you can't do it anymore. Therefore no hurry; though may have a lot of "sweat". Ha! Ha!
Shalom.

China people believe that Mahjong game help to avoid dementia. I believe stock investment has the same effect. Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#75
Quote:"Thrift is a habit that's hard to be broken."
So we have a clique saying: "Old habits die hard".
From my observation of relatives and friends, it's true that sometimes they revert to very thrifty habits even though they are now worth more than 5 $millions. And all their children are specialist doctors now, who are quite well off also.
i use to believe if you don't need to spend, you are rich already. Except food of course. Ha! Ha! i still do.

(09-04-2013, 08:46 AM)kazukirai Wrote:
(08-04-2013, 11:41 PM)Greenrookie Wrote: 3) think thrice just to buy a gift for a loved ones, take a cab or dine at a restaurant.

I find that once one has gotten used to a way of thinking, it's tough to deviate from it.

I've been conditioned to think of opportunity cost. e.g. If I don't spend this 100 bucks, I could invest it at a rate of 10% and that is roughly $694 over an investing lifetime of 50 years.

Once one starts to think like this...it's pretty tough to deviate. Much like Warren Buffet's view of his first wife's spending 10 or 20K on furniture when they first got married. In my own life, my father-in-law's like this too.

Thrift is a habit that's hard to be broken.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#75
Quote:"Thrift is a habit that's hard to be broken."
So we have a clique saying: "Old habits die hard".
From my observation of relatives and friends, it's true that sometimes they revert to very thrifty habits even though they are now worth more than 5 $millions. And all their children are specialist doctors now, who are quite well off also.
i use to believe if you don't need to spend, you are rich already. Except food of course. Ha! Ha! i still do.

(09-04-2013, 08:46 AM)kazukirai Wrote:
(08-04-2013, 11:41 PM)Greenrookie Wrote: 3) think thrice just to buy a gift for a loved ones, take a cab or dine at a restaurant.

I find that once one has gotten used to a way of thinking, it's tough to deviate from it.

I've been conditioned to think of opportunity cost. e.g. If I don't spend this 100 bucks, I could invest it at a rate of 10% and that is roughly $694 over an investing lifetime of 50 years.

Once one starts to think like this...it's pretty tough to deviate. Much like Warren Buffet's view of his first wife's spending 10 or 20K on furniture when they first got married. In my own life, my father-in-law's like this too.

Thrift is a habit that's hard to be broken.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#76
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Depends on how you do your 'marketing'. You have to beat the professionals who'd been so successful in creating the feeling of wants... So, for eg.,

1. Don't look at daily share price fluctuations
2. Tell them they're the co-owners of Coach / Tiffany / OCBC
ie. Everything they can see and touch in every single shop in any part of the world where these cos. have a presence - they have a part share in them!

Let's hope they don't end up visiting the shops everyday to check their part share of their merchandise....and scold the staff when they see them slackening...Big Grin
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
Reply
#76
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Depends on how you do your 'marketing'. You have to beat the professionals who'd been so successful in creating the feeling of wants... So, for eg.,

1. Don't look at daily share price fluctuations
2. Tell them they're the co-owners of Coach / Tiffany / OCBC
ie. Everything they can see and touch in every single shop in any part of the world where these cos. have a presence - they have a part share in them!

Let's hope they don't end up visiting the shops everyday to check their part share of their merchandise....and scold the staff when they see them slackening...Big Grin
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
Reply
#77
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.
Ha! Ha!
i agree.
Why man needs so much money for? The hidden motive is so they can show off on their woman and of course pamper them.
Historically, men can even trade their "Kingdom" just to make their women happy. So you see, don't underestimate the power of a woman over man.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#77
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.
Ha! Ha!
i agree.
Why man needs so much money for? The hidden motive is so they can show off on their woman and of course pamper them.
Historically, men can even trade their "Kingdom" just to make their women happy. So you see, don't underestimate the power of a woman over man.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#78
(09-04-2013, 09:21 AM)egghead Wrote:
(09-04-2013, 08:54 AM)paullow Wrote: u can't add a tangible value for buying gifts for love ones, having a nice dinner, going for a nice getaway. of coz it costs money to do all that but its the smile on the opposite party which is worth a hundreds times more than that spent or that compounded for 30yrs.

That is a timely reminder.

Diamond ring - $8k;
Investment of $8k compounded at 8% over 30 years - $80k;
Smile on wife's face - priceless Big GrinBig Grin

When we got married, I was too poor to buy any decent size diamond and so I gave my wife a choice between a 0.1 carat diamond ring and a call option.

The call option allows her to redeem at zero cost a diamond ring and its size depends on the vesting period "compounded" at a rate of 0.1 carat per year.

After more than a decade, this off balance sheet liability has grown quite substantially. Fortunately, the growth on the asset side has outstripped this liability. Wife is happy, I am happier.
Reply
#78
(09-04-2013, 09:21 AM)egghead Wrote:
(09-04-2013, 08:54 AM)paullow Wrote: u can't add a tangible value for buying gifts for love ones, having a nice dinner, going for a nice getaway. of coz it costs money to do all that but its the smile on the opposite party which is worth a hundreds times more than that spent or that compounded for 30yrs.

That is a timely reminder.

Diamond ring - $8k;
Investment of $8k compounded at 8% over 30 years - $80k;
Smile on wife's face - priceless Big GrinBig Grin

When we got married, I was too poor to buy any decent size diamond and so I gave my wife a choice between a 0.1 carat diamond ring and a call option.

The call option allows her to redeem at zero cost a diamond ring and its size depends on the vesting period "compounded" at a rate of 0.1 carat per year.

After more than a decade, this off balance sheet liability has grown quite substantially. Fortunately, the growth on the asset side has outstripped this liability. Wife is happy, I am happier.
Reply
#79
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Shares can't be touched, but it will put up a reassurance monthly with its CDP statements, and regular "love gift(s)" with its dividend yearly or half-yearly.

It is all on your behalf FOC and effortless. Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#79
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Shares can't be touched, but it will put up a reassurance monthly with its CDP statements, and regular "love gift(s)" with its dividend yearly or half-yearly.

It is all on your behalf FOC and effortless. Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#80
(09-04-2013, 10:45 AM)CityFarmer Wrote:
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Shares can't be touched, but it will put up a reassurance monthly with its CDP statements, and regular "love gift(s)" with its dividend yearly or half-yearly.

It is all on your behalf FOC and effortless. Big Grin
i think we should let the woman of your life choose "fairly" (aka don't try to influnece her choice). I bet 9 out of ten will choose diamonds. Actually it's not a bad choice when you realise after 20-30 years the price of diamonds has not really lost it's value. Besides woman are made differently from man. i think they are more to " a bird in your hand is worth 2 in the bush". And each time she sees the diamond, she sees you. Not bad eh???
Anyway, we all must have some hard assets as "insurance".
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#80
(09-04-2013, 10:45 AM)CityFarmer Wrote:
(09-04-2013, 10:02 AM)paullow Wrote: coach shares cannot feel touch n use, n can yoyo womans emotions according to rise n fall in prices. coach bag can use daily. different. won't change in size.

Shares can't be touched, but it will put up a reassurance monthly with its CDP statements, and regular "love gift(s)" with its dividend yearly or half-yearly.

It is all on your behalf FOC and effortless. Big Grin
i think we should let the woman of your life choose "fairly" (aka don't try to influnece her choice). I bet 9 out of ten will choose diamonds. Actually it's not a bad choice when you realise after 20-30 years the price of diamonds has not really lost it's value. Besides woman are made differently from man. i think they are more to " a bird in your hand is worth 2 in the bush". And each time she sees the diamond, she sees you. Not bad eh???
Anyway, we all must have some hard assets as "insurance".
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply


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