No free lunch (or dinner) but what about mooncakes?

Recently, I had a mission in town and, so, I had to have an "atas" dinner in town:

Rice with stir fried vegetables, chye poh egg and sweet sour fish.

Price? $4.00. Not too bad. There is less expensive food in town too, I am glad to say.

Now, what was the mission I was on? I had to collect mooncakes and since so many people are putting up photos of mooncakes and blogging about them, let me join in the fun.

Stacked them up in the back seat of the car.

People buying the mooncakes or buying the carrier, I wonder?

I am not really a mooncake person these days and pretty lucky I am not too. They are so expensive (and unhealthy)! On that note,

HAPPY MID-AUTUMN FESTIVAL!

It is happening on 8 September (Monday). Just have to hope that the skies are clear enough to see the moon then. Crossing fingers.

Related post:
Sambal mooncakes!

Investing for income: An important element (UPDATED: BUFFETT ON BUYING HIS FIRST STOCK.)

Wah! So much mail from the broker! 

AK must be trading a lot!


I receive quite a few emails from readers. 

Among them, some are encouraging and some are depressing. 

I usually share the more encouraging ones here in my blog but not the depressing ones. 

No point, right?





Well, in case you are wondering, the depressing ones are usually along the line of how they make so little money in their day jobs and how they cannot save enough. 

So, they can't put much money into investments and for those who did, they get so little dividends that it seems meaningless.

What do I have to say in reply?





It takes time to build a strong income producing portfolio. 

It is not going to happen overnight. 

It is usually not glamorous. 

It is definitely not exciting like promises of fast money.






So, what is needed? 

Time.

Now, you have an idea what those envelopes contained.

Readers who have followed me for a while and who have put some of my strategies into action would be able to attest to how their financial health has improved if they have been disciplined.

With extra money coming in regularly, how could it not be a good thing?





A reader told me how his passive income has improved from just a two figure sum so many years ago to the five figure sum it is today. 

Impressed? 

I know I am.

So, for those who are already on the path to financial freedom, stay the course. 

For those who are just starting, remember that it is always toughest at the start.





Related posts:
1. If we are not rich, don't act rich.
2. Do the right things and we could transform our lives.
3. Seven steps to creating passive income from stocks.
4. The best insurance to have in life.
5. First REIT: AK reveals size of investment.

How to size our more speculative positions?

I have shared before that it is OK to gamble a bit once in a while. 

I am Chinese and gambling is in my blood. 

It's not my fault that I am born Chinese.





So, I have nothing against speculation per se. 

1. As long as speculators know that what they are doing is speculation, 

2. As long as they are mindful of the possible consequences 

and 

3. As long as they are able to take the losses comfortably if things go wrong, there is nothing really wrong with speculation, is there?

http://singaporeanstocksinvestor.blogspot.sg/2014/08/accordia-golf-trust-hole-in-one.html

Well, I would say please keep speculative positions small. 

Of course, how small it is would depend on

1. our risk appetite 

and 

2. our ability absorb losses. 

2 to 3% of our portfolio size for some and 10% for others? 

Sounds rather arbitrary, doesn't it?





When a reader asked me for a "formula" to help quantify "small", what did I say?

I told him it would have to be an amount I can recover quickly within a year or less in case of a total loss. 

This measure has always given me peace of mind and he said it is helpful to him. 

So, I thought I should share this.





Of course, if I should have more than one speculative position, the total exposure should not exceed the amount I think I could recover within a year. 

It is a bit like having one or five credit cards from the same bank. 

The credit limit doesn't increase with each additional card issued.





Like with so many things in my life now, it is about avoiding stressful situations where possible and not losing more money than I can recoup in a relatively short time works for me.

Always ask "to what extent can I afford to be completely wrong?"

Once we have the answer to this question, we will know how to size our more speculative positions.



Related posts:
1. Motivations and methods in investing.
2. How to make recovery from losses easier?
3. To be richer, be comfortable with being invested.