Oct 26, 2013

Cory Diary : Price of Staying Away from the Market


In Stock Investment, I often encounter situations in which should I wait for the Bear before I invest or should i stay invested. I need to put it to a test at least.

With recent correction of Reits in July, I like to simulate two situations which can tell me something. I can do similar with Preference Shares or any others.




RESULT

In scenario 1, over 7 years period, the stock enjoyed 30% capital gains before sliding to red -5% loss.

In scenario 2, investment starts on 3rd year and assuming no capital gain or losses.

For a 7% initial yield returns, assuming absolute dividend amount maintains irregardless of stock price, annualized returns for Scenario 1 is higher by 1.8%.

INFLATION is a SIN to One's Financial Well Being.What can be the other ?
Probably PROCRASTINATION. So what can be even worst than that ? Maybe staying out totally or coming in very late in a big way !


Cory
26th Oct 2013

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Per Wiki,

Procrastination is the practice of carrying out less urgent tasks in preference to more urgent ones, or doing more pleasurable things in place of less pleasurable ones, and thus putting off impending tasks to a later time.

Oct 20, 2013

Cory Diary : Available Funds

For someone who knows me, i put "EVERYTHING" in Excel. Ha. Therefore I can count my Net Worth in "Split Seconds" theoretically.

Not something to brag about but is something i like to write to remember (Share ...). It has to do to control my risk, return and future planning. Without that I am at a loss as i am kind of guy that needs to see the big picture. Something to overcome my shortcoming i guess.

Is no use saying without able to throw out figures on the fly. Here we go.I have less than 2% in Gold. Unfortunately to some is Virtual. Please don't shoot me for that. 25% Pure Cash, not even in fixed deposits ! Around 45% in Fixed Return Instruments. I can break them down and work to report them out at different ways i like.

Cash alone can probably last me for double digit years. Not so if there is emergency or opportunity needs. Maybe i can tap on my Fixed Instruments. Maybe i should continue to draw fixed income. Maybe i need to do some business. Maybe ...

Never mind ! The point is I am aware so I am.


Cory
20th Oct 2013

Oct 14, 2013

Cory Diary : Passive Income


According to Wiki, Passive income is an income received on a regular basis, with little effort required to maintain it.

This definition appear more reasonable and easier to understand. The keywords are "little effort" which varies with individuals environment and expertise. A person who invests in stock based on tips, the psychics typically will be temporary and non-recurring whereas one who's after dividends may view the same counter as stable and growing therefore recurring and passive in nature.

This leads to amount of attention required from individuals to monitor their investments which likely go proportional with stress level. If we need to constantly worry to a point to do hourly checks, to me is not passive. If your invested apartment is empty for 6 months of the year since the last tenant and you are not bother about it,  we miss the investment elements of passiveness.

And with most investments, if the business costs can significantly impacts your returns to justify the passive income, and with most cases are opportunity costs or interest payments which you cannot keep up with, losing sleep is a matter of when while inflation continues to creep up on us in the middle of night regardless.


Few things to watch

1. Degree of Recurring Income (income element)


2. Attention span required (little effort)

3. Capital protection against inflation and distribution (sustainability)

4. Personal Liability (investment risk)


Cory
14th Oct'13

Oct 3, 2013

Cory Diary : Anyone Care ?


D: I want Ocare.

R: Let's do a vote on Ocare.
R: Ok great you win. We will implement it. ;)

D: Ok let discuss to increase this year budget for everything including loans.

R: Sure ! I will agreed provide you De-fund Ocare.  ( Thug laughter)

D: WTF !

R: No discuss ? O' you thug, you need to be reasonable ! This is a Democratic Nation. Our forefathers ....

D: This is ridiculous !

R: We want to negotiate, the problem is you

D: This is holding our Nation on Ransom !

R: So ? Never mind if people lose jobs. Is not the first time poor people go hungry. We need to keep our Sponsor happy.

D: This time i have enough. You bully. I am not ( Not !! Not !) going to bow.


Cory
3rd Oct 2013