A reader's insights into AK the investor.

An email from a reader:

There are many articles - both new and old - recently that you've been sharing recently on saving money that I feel are definitely useful to the general public. 

With regards to investing, I now understand not only how to screen stocks better but also why you stop blogging about your nibbles and what you have invested in.

Entry and exit points are partly dependent on each person's financial capabilities because we don't know how Mr Market is gonna swing the next second. 

Also, maybe, you don't wanna be held accountable for other people's orders (but really though, why are they following your steps when they probably can't tank the next drop and average down; a good stock on the slide = greater value = higher dividend yield). 

After all, it's their own money and not AK's. So, they should really take care of the downside for I always believe the upside will take care of itself.

But having said that, I also understand why some are not investing or give up investing altogether after a while. The incremental numbers they see are probably smaller due to the fact that they are not hugely invested.

Whenever you blog about your quarterly dividends from REITs, I'm sure your blog's traffic spikes because everyone must be thinking, 

"Wow, if only I had that kinda money for me!" 

A fantasy?

But do they have the temperament to act like AK when everyone is looking away from a gloomy market?

The more important but sensitive question is, what did AK do to amass such amounts at the start and yet not spend it but invest it instead? 

Related posts:
1. How did AK create a 6 digits passive income?
2. Buffett and Munger don't like to pay full prices.
"... bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past," Charlie Munger.

Have a genie and even children can enjoy passive income.

OMG! -.-"





Child:
"I want that car!"

Mom:
"No. You have many toys at home already."

Child:
"I want!!!"

Dad:
"OK, OK. Daddy buy for you later."

Mom:
"No means no! You don't spoil him."

Child started to cry.




Grandpa:
"Aiyoh, simi lah. He wants, just buy for him lah."

Mom:
"Pa, no lah. He has many toys at home already."

Child sat on the floor, kicking his legs, his cries grew louder.

Grandpa:
"Aiyoh! See lah! Now like that! Come, Ah Boy, don't cry liao. Ah Gong bring you go next door and buy the car."

Crying ceased abruptly. Boy smiling happily took his grandpa's hand and skipped out of the restaurant.





Mom:
"URGH!!! I really hate it. Your father is always interfering with the way I bring up our kid."

Dad:
"Er... Dear, let's order the BBQ pork ribs. You like it, right?"

Sigh...

The mother probably felt angry having her authority undermined. 

However, I would worry more about how the kid would grow up thinking that whatever he wants, he only needs to ask for it. If he doesn't get it, just throw a tantrum and increase his chances. Simple!





A strong feeling of entitlement? 

You think so? 

I think so too.





Now, it is a toy car. When he becomes a young adult, what then? A Mercedes Benz?

"We are seeing more kids bringing their parents to the showroom to book a CLA-Class or A-Class," said a senior executive at Mercedes Benz. 
See: First time car buyer? Get a Mercedes Benz.

Genies in magic lamps are supposed to be immortal. However, human beings are not. 

Don't be a genie to your children or grandchildren. You are not doing them a favour acting like one.




Related posts:
1. Your children will become what you are.

2. How to have children and retire comfortably?

3. Make CPF a part of your child's savings plan.

4. Teaching young children financial literacy.

5. At what age to start investing?