"As always, invest based on your risk comfort level.
"Remember that media headlines should not be what is driving your overall strategy and, instead, thoughtful analysis of your goals (and willingness to absorb pain in market down periods) is what is necessary for a successful investment strategy.
"Decide which type of investor you are before you invest and make sure the overall strategy reflects your view of the world as well as the degree to which you can afford to be completely wrong.
"And always remember that no matter what you read, opinions change and strategists are fallible.
"It's a mistake to believe that anyone has all the answers; if they did they probably would not be sharing their secret with the world."
Michael Yoshikami
Related posts:
1. Sleep well at night with a plan.
2. Roads to wealth creation in the stock market.
Agreed, it's due diligence. Should not be chasing the next hot IPOs or stocks :)
ReplyDeleteHi LCF,
ReplyDeleteIt is much more than due diligence. It is also about knowing ourselves which includes how comfortable we are with being invested and at what level of investment.
I wrote about this too recently:
To be richer, be comfortable with being invested.
There is much subjectivity here although we may start off by looking at the matter objectively. :)
Fully agree with you that we need a plan to start with. However, it is equally important to regularly review your plan as you embark to execute your plan, and make adjustment to it.
ReplyDeleteWhat a difference a day makes...
ReplyDeleteYesterday's first hour free fall (Japan Trade figures?) and this morning's sharp recovery (FOMC meeting?) - whipsplash!
Shit happens when investors start jumping in and out like traders; and traders get married to positions like investors...
In yo-yo markets, its not the time to be either 100% cash or 100% vested ;)
But then, if we have no clue what kind of immortal we are, how to chose the "right" magical vehicle to cross the Easter Sea?
LOL!
Hi Sanye,
ReplyDeleteYes, the only constant in life is change. A good investment today might not be a good investment tomorrow. A sound strategy today might not be so tomorrow.
Then again, much of this is only evident on hindsight, is it not? ;)
Hi SMOL,
ReplyDeleteI don't like crossing rough seas usually. I get sea sick.
The times I enjoyed being on the sea were when I was on a big cruise ship. Nice and stable.
If I were offered a small sampan or even a sailing boat, forget it. Very uncomfortable and, chances are, they would capsize.
So, people with sampans and sailing boats should avoid crossing rough seas in them. Best to stay ashore. ;)
oh nice, nice big cruise ship but very expensive le!
ReplyDeletepeople like us, er i mean me, with little money to start with, can only go by sampan, not even sailing boat. sometime we have to swim you know haha.
ya nice post.
Hi coconut,
ReplyDeleteYou are so modest.
You and SMOL are in the Stealth Cruiser class. You guys could sink cruise ships anytime. ;)
Interesting analogy on crossing the rough sea. Then again, when those people boarded Titanic on the fateful journey, who would have thought that this biggest cruise ship would not make it to the destination?
ReplyDeleteI learned this from the SAF: Never go into an operation without a plan B and reserve force. This is only doctrine of SAF I still remember. :)
Hi Sanye,
ReplyDeleteIndeed, the Titanic was tragic! A cruise ship should have enough lifeboats and a competent Captain! Suddenly, Chartered Semicon comes to mind! ;p
The SAF taught me many useful things although skeptics might find this hard to believe. :)
Things could always go wrong, very wrong...
"I believe in staying invested because I cannot tell when the next crash is coming. So, I try to invest with a margin of safety and I also try to manage my exposure." Shared this on my FB wall.
ReplyDeletePei Lin said...
ReplyDeleteCan you share the list of stocks you check everyday? It will be very helpful for all of us who want to save and invest.
AK said...
Nope, I won't but if you read my past blogs on passive income from REITs and non-REITs as well as blogs on my largest investments, you will know what are some stocks I look at. ;)
Hi AK,
ReplyDeleteThough your post was made about seven years ago, I am of view that your post is still valid as per today's context. You were in full-time employment in 2012 and now you are living a leisurely lifestyle as per your desire. I believe that you also have some plan going forward. Having a plan gives one the peace of mind and such plan gives one the direction to follow regardless of how pressing or urgent the existing circumstance unravels. Peace is mind is the best form of state for one with simple desire.
My two cents worth of views.
Ben
Hi Ben,
ReplyDeleteYes, I am of the opinion that wisdom is evergreen or at least I hope it is. ;p