Hi Uncle MK
Thanks, if that's rattling then by god do we need more of that on this forum
I've always been intrigued by stock market investment as a source of revenue but unfortunately always had a bad run when it comes to picking the right stock. So far I estimate I have lose some 400k on various stocks/gold investments, the only ones I've not lose much money on are some local stocks I bought (Reits & Etfs). I'll persevere and try to discipline myself into not taking riskier bets. Do you do any kind deep analysis on the companies you invest in?
I do have a knack at property investments thankfully, but I have yet to go thru any major downturn (i.e 97) so I admittedly have not gone the full cycle of the negatives of property investment. I do agree with what you said on the diversification being impossible, not to mention challenges on asset disposal, time lag to dispose etc. Currently I'm trying to sell a property and already the tenants is making things difficult. That said I do enjoy the process of fixing up places I bought and ensuring my tenants enjoy good standards of comfort. Also when it comes to spotting a good asset I find it a lot less challenging compared to finding a good stock.
I would imagine most successful businessman go thru rounds of unsuccessful ventures before hitting the right one I suppose a strong businessman always persevere otherwise he might not have hit the right business to get into. I heard stories from my friends family who took on a lot of risk to keep the company afloat and the made it big just due to luck & timing, its funny how life works out. One day one faces the possibility of bankruptcy or the next day was on track for listing.
Thanks again for the sound advise and the informative post really appreciate it. Would be great to know in more detail the unsuccessful ventures and successful ones you've had but that would be too much to ask especially on a anonymous forum
Keep in good health
Regards
101
Quote:
Originally Posted by Uncle MK
To the post by 101,
Uncle (personally) prefers investing in stocks mainly; lower initial outlay, easy access to diversification, higher liquidity and low negative equity valuation. However, opportunity cost to faster capital appreciation and status quo are inevitable.
In property investment, unless you're a tycoon or reit manager, diversification seems almost impossible. To make matter worst, negative valuations attracted margin calls even out of recessionary phases. This is definitely heart-stopping for uncle especially above age 50. In stocks, uncle may buy/sell/hold for extended periods without leverage - dividends are a bonus and capital appreciation is nice. The main objective is to combat inflationary pressures.
Uncle suggests young (aspiring) millionaires to adopt investing so as to secure a foothold in retirement; common (blue-chip and mid-cap) stocks, long-term bonds (no perpertual), (almost) guaranteed T-bills, index funds mainly vanguard or s&p and insurance. If an individual wants to start a family, service finished the mortgage within 6-8 years before investing.
In uncle's era, businessmen are more like swindlers where who gets the contract signed wins. It's unevitable to see unscrupulous dealers overpromising but under-delivering and not much can be done. In today's context, global uncertainty and intense (global) competitors wiped out SMEs in Singapore, not to mention third-world nations emerging victorious. Uncle warns aspiring entrepreneurs not to be laid-back and innovate quarterly. Else, pardon to say day-jobs are in better positioning per se.
As I remembered those days, many businessmen and entrepreneurs seek investments involving tens of millions to be the next big 'thing'. Uncle lost closed few millions in earlier ventures but the final one before giving up succeeded. The rest is history. When I wrote down my variable package, what isn't included is my annual dividends declaration of which isn't taxable. You see, sometimes it's about persevering while others attributed to luck.
Okay, uncle rattled quite a bit..
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