I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Saturday 13 July 2013

The Temperament of a True Investor!

Just For Thinking ....

After reading this book, must be well borrowed book at Cheng San NLB as it is full of dirt and stain when Uncle88888 borrowed it!

The Temperament of a True Investor





Well, if you want to be somewhat a little bit like this man who is so loaded with money from stocks, you may have to develop yourself to build up the following characteristics:

1.True Investors are
Calm
 
Buffett is blunt: Unless you can watch your stock holding decline by 50 percent without becoming panic stricken, you should not be in the stock market. In fact, he adds as long as you feel good about the business you own, you should welcome lower prices as a way to profitably increase your holdings.

True investors also remain calm in the face of what we might call the mob influence. When one stock or industry or one mutual fund suddenly lands in the spotlight, the mob rushes in that direction.
 
The trouble is, when everyone is making the same choices because "everyone" knows its the thing to do, then no one is in a position to profit.
 
True investors don't worry about missing the party; they worry about coming to the party unprepared.


2.True Investors are Patient

Rather than being swept along in the enthusiasm of the crowd, true investors wait for the right opportunity. They say no more often than yes. Buffett learned that the ability to say no is a tremendous advantage for an investor.


3.True Investors are Rational

They approach the market, and the world, from a base of clear thinking. They are neither unduly pessimistic nor irrationally optimistic; they are, instead, logical & rational.Buffett finds it odd that so many people feel optimistic when market prices are rising, pessimistic when prices are going down. Sell at lower prices & buy at higher prices - not the most profitable strategy.

True investors are pleased when the rest of the world turns pessimistic, because they see it for what it really is: a perfect time to buy good companies at bargain prices.
Buffett says "Pessimism is the most common cause of low prices. We want to do business in such an environment, not because we like the pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
 
 

1 comment:

  1. Once upon a time, telcos were hot because of the potentials of 3G (remember the crazy 3G bid prices?). Contract manufacturers were hot due to outsourcing trend. S-chips were the darlings when the rise of China was on everyone's lips. And now it's the Myanmar play. All will pass.

    I now understand what Warren meant.

    However, if we have most of our equity FULLY invested, and it drops by half, its no fun...

    Unless of course you are like Warren with boatloads of cash to buy even more!

    How many have the discipline to take money off the table when the market is on a bull run?

    ReplyDelete

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