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Price we pay when die die must buy.

Monday, July 31, 2017

Someone told me that the fried mee from a hawker store at a market near my home is very good. 

Die die also must try. 

Every time I go, I see a long queue. 

When I ask how long must I wait for a serving? 

About half an hour or maybe longer. 

Forget it.

See: Comments.
On one of my evening walks, when I walked by the stall, there wasn't much of a queue. 

So, I tried the noodles. 

I didn't have to wait very long.

What does this tell us? 

If we die die must buy, then, there is a price we have to pay and that price might not be monetary in nature.

You want an example that is monetary in nature?

For those of us who buy cars, we would know the "discount" that they offer if we took a loan through the car dealer. 

If we did not, then, the price tag of the car would be higher.

For both my current and previous cars, they did that to me. 

I told the sales staff I would just buy a car elsewhere. 

It was not as if I die, die must buy a car from them. 

Suddenly, I could get the "discount" even though I didn't take a loan.

If we are die die must buy type of consumers, then, we could pay higher prices and it might or might not be in dollar terms.

Is this a story for consumers only or does it apply to investors too? 

Related post:
I could not afford it but...


Kevin said...

Hi AK,

How did the fried mee fare? Did it live up to the hype?

Do you eat durians? The price of cat mountain king is currently inflated to S$45/kg. Absolute madness. -___- '''''
For me I choose die die don't buy rather go and die than pay such price to eat it. ;P

AK71 said...

Hi Kevin,

Good food is wasted on me. I can't tell the difference. -.-"

As for durians, nah. It has been a while since I had any. I am safe. ;p

Laurence said...

Guess this is the opportune time for durian importers to offload their company stocks at sky-high valuations to retail investors and make a killing by listing in SGX/Catalist. Just like what Singtel just did.

Cory said...

I have a super soft spot for most durians. Fortunately, I can settle for $10 per pack type !

SkinnyOldMan said...

Hi AK,

You said "On one of my evening walks, when I walked by the stall, there wasn't much of a queue. So, I tried the noodles. I didn't have to wait very long. What does this tell us? "

Actually, it tells us the same thing as how we should go about investing - keep an eye out and there will be a time when the "price" (in this case, the waiting time) is right.


Kevin said...

TIme is money...

AK71 said...


You got the hidden message in the blog. ;)

It is harder to chase after money. It is easier to let money come to us. ;)

AK is lazy. Bad AK! Bad AK! ;p

AK71 said...

Hi Kevin,

Oh, definitely. :)

Alamak. This means I am spending lots of money playing online games now (even though they are free to play). Bad AK! Bad AK! -.-"

AK71 said...

Reader says...
As per what you said in the your blog post on "How to size our more speculative positions?".

The key take away is, should anyone speculates Bitcoin or any "assets". Taking their risk appetite into consideration, do it with the sum they'll be able to not lose sleep about.

You're right. There is actually no "value" tied down to Bitcoin...


Blogger AK said...
I understand Bitcoin is a virtual currency.

Like any currency, if there is demand, its value goes up.

This is how a country's currency derives some of its value.

If there is demand for your country's goods and services, there will be demand for your country's currency because it is required to pay for those goods and services.

This is real demand.

However, a country's currency can also be driven up due to more speculative demand.

What kind of demand is driving Bitcoin higher?

I feel that mindless greed and the irrational fear of losing out is driving Bitcoin higher.

The atmosphere is not almost manic.

It is manic.

However, instead of buying precious metals like gold and silver for insurance, there could also be some people who are buying Bitcoins as an insurance against the very flawed fiat currencies.

Is it a case of die, die must buy?

AK71 said...

The vice president of the European Central Bank (ECB) has said that investors are taking a ‘risk’ by buying bitcoin at its high price.

Speaking to CNBC on Wednesday, Vitor Constancio, said:

"It’s a very particular asset, it’s a speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices."

Constancio’s comments come at a time when the digital currency is experiencing a surge in value. Earlier today, it was reported that bitcoin had risen to over $11,000 along with a rise in various alt-coin prices. To date, the cryptocurrency has increased by over 1,000 percent, a colossal undertaking considering it was trading at $1,000 at the beginning of the year, and has overcome numerous obstacles.

Some, though, are still expecting great things from bitcoin. Mike Novogratz, a billionaire investor and hedge fund manager, believes that it could ‘easily’ rise to $40,000 by the end of 2018.

Central banks, though, have continually been reluctant to embrace the market. The ECB vice president said earlier this month that digital currencies will never replace the fiat system, adding that they were a ‘misnomer‘ merely used as a speculative asset.

December 4, 2017

AK71 said...

Bitcoin is a very risky investment and you should keep in that in mind at all times.

Bitcoin trading is different than buying and holding.

When you are trading Bitcoins it means that you are actively trying to buy Bitcoins at a low price and sell them back at a higher price in relatively short time interval.

Trading successfully requires knowledge and practice.

The trading market is occupied by very large players who are just waiting for newbies to come in and throw their money away by trading aimlessly.


AK71 said...

Critics warn of a bubble.

"The relatively high volume of cryptocurrency turnover, against limited real-world use, suggests that many buyers are seeking speculative gain, never intending to use cryptocurrencies to make a real-world transaction," UBS analysts said in report quoted by CNBC.

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