Passive Income

Originally Posted by bioman

By the way, where is a good place to get educated on stocks?

Sad truth is nowhere. Google can show you many website that teach you basic investment terms, but in terms of how to make profit, it is like religion.

Endless debate and squabble between, FA / TA / Hybrid, EMH / Partial EMH / Non-EMH, Behavorial / Asset Allocation / Hedging, Long/Short, Stock/REIT/Trust/Warrant/Forex/Future/Fund/Swap/Index.....

Everyone claim to believe in something and insist their way is the best. The only way is to spend your own money and test out and hope you find a formula that works before loosing all your capital.

Originally Posted by Unregistered

Sad truth is nowhere. Google can show you many website that teach you basic investment terms, but in terms of how to make profit, it is like religion.

Endless debate and squabble between, FA / TA / Hybrid, EMH / Partial EMH / Non-EMH, Behavorial / Asset Allocation / Hedging, Long/Short, Stock/REIT/Trust/Warrant/Forex/Future/Fund/Swap/Index.....

Everyone claim to believe in something and insist their way is the best. The only way is to spend your own money and test out and hope you find a formula that works before loosing all your capital.

I'm definitely not the best, but I buy blue chips when they are considered "cheap" (debatable) and keep them for a long time to (1) milk their dividends and (2) let them appreciate in value.

I don't believe in "trading" (buying and selling frequently and in bursts) - the party who benefits most is obviously the brokerage or your broker.

[bioman]

Thanks for the advices. Hope to have passive income from stocks.
However looks so complicated, not even sure how to make the first step?

Originally Posted by Unregistered

I'm definitely not the best, but I buy blue chips when they are considered "cheap" (debatable) and keep them for a long time to (1) milk their dividends and (2) let them appreciate in value.

I don't believe in "trading" (buying and selling frequently and in bursts) - the party who benefits most is obviously the brokerage or your broker.

Originally Posted by Unregistered

I'm definitely not the best, but I buy blue chips when they are considered "cheap" (debatable) and keep them for a long time to (1) milk their dividends and (2) let them appreciate in value.

I don't believe in "trading" (buying and selling frequently and in bursts) - the party who benefits most is obviously the brokerage or your broker.

Like I say before, you will believe in what you will. Others will say they don’t believe this is an implementable strategy as the concept of cheap is just a subjective guess.

I have researched extensively on reading materials and interview with real life people who play the markets. There is simply no consistency and correlation between actual result and all these different beliefs people have. All strategies seem to work for some and dun work for others - It’s a potshot.

[miwashi]

is it the norm for stock to give dividend payouts? i was under the impression normally they don't.

Originally Posted by miwashi

is it the norm for stock to give dividend payouts? i was under the impression normally they don't.

Yes some do. Read yesterday's Sunday Times.

Originally Posted by miwashi

normally how many hundreds of thousands must you have invested in stocks before the dividends are in the region of $3000 ah?

invested 300k - divided 15k annually

Does anyone have other less traditional sources of passive income? Maybe not ex-husband's maintenance allowance or late auntie's estate, but how about book royalties or patent licence fees, or even an iPhone app?

[miwashi]

best is inheritance from a tycoon relative you never knew you had

The inherent leverage of investing into property (versus stocks) is that can help you reach your passive income goal faster.

For instance, assume a 60% financing on your second property. An investment of $400k on a $1m property can get you a rental yield of $25k p/a, after deducting off interest costs. (assume a 2.5% net rental yield)

On the other hand, putting the $400k into stocks may get you $16k p/a. Assuming an average 4% dividend yield.

Of course leverage works like a 2 edged sword. A key here is that interest rates remain low. Another assumption is that your property remains rented out.

The effect on capital appreciation is the same. the ROE from a property investment exceeds the ROE from a stock investment due to leverage, assuming the same % of capital appreciation.