Intelligent Investor's Notes

Five Habits of Highly Successful Investors - #1: Set a goal, and work towards it

Intelligent Investor
Publish date: Wed, 14 Jan 2015, 02:12 PM
Intelligent Investor
0 47
http://intelligentinvestor8.blogspot.com
Following Message

Habit #1: Set a goal, and work towards it

Investment is not only “To make money!”,  we should use the money to support a bigger idea. E.g. nest egg for post retirement life, children's education, marriage, world tour, etc...

The goals are not static and subject to change. Revisit it whenever there has been a major change in your life, i.e. marriage, child birth, purchase of home, .....

Says, I would like to have 3 million after 20 year to sponsor my retirement life. Currently I have a 150k savings and I able to save 6k per year (aka 500 per month). And, I am confidence that I am able to achieve this if I able to compound my investment with a 15% CAGR.  (You can work out your own number with a CAGR Calculator).
 


The above results from the CAGR Calculator show me that I should able to achieve my goal by investing as per planned. This is very important for me to know my goal in order for me to:-

 

  1. I know how much to save to achieve my goal? For me, I need to save RM500 per month and I can use extra balance from my salary to enjoy my life instead of being too frugal. 
  2.  I just need a 15% CAGR. And, I can go for a safety investment options by investing in mature companies instead of risk my money to find for a high growth invesment options that come together with high risk.


I will setup different portfolio to achieve different goal (child education, tour, etc...), perform the budget and set the target CAGR.

 

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. - Paul Samuelson

I would not pre-pay. I would invest instead and let the investments cover it. -  Dave Ramsey


I believe everyone have his own numbers. You can work out your version by key your numbers to the
CAGR Calculator and work towards it.

You can read this and this article from kcchongnz if you want to be more precise to know what is your own numbers. 


Refences:-

 

Labels: ,
More articles on Intelligent Investor's Notes
IPO Analysis

Created by Intelligent Investor | Nov 02, 2015

KLSE - Financial Data (Free)

Created by Intelligent Investor | Nov 02, 2015

Company with Continuously Improvement in Adjusted EPS for Pass 10 FY

Created by Intelligent Investor | May 07, 2015

Cold Eye’s 5 yardsticks for investment

Created by Intelligent Investor | Jan 31, 2015

Buying Good Companies when the price is cheap - A summary from 小資女艾蜜莉 video

Created by Intelligent Investor | Jan 27, 2015

Five Habits of Highly Successful Investors - #5: Understand risk

Created by Intelligent Investor | Jan 14, 2015

Five Habits of Highly Successful Investors - #4: Mind your behaviour

Created by Intelligent Investor | Jan 14, 2015

Five Habits of Highly Successful Investors -#3: Read…read…read

Created by Intelligent Investor | Jan 14, 2015

Five Habits of Highly Successful Investors - #2: Know basic accounting

Created by Intelligent Investor | Jan 14, 2015

Discussions
5 people like this. Showing 9 of 9 comments

tbm65

http://www.safalniveshak.com/smart-people-investing-five-habits-of-highly-successful-investors/

dont steal this author hard work.

2015-01-14 18:03

kcchongnz

Posted by tbm65 > Jan 14, 2015 06:03 PM | Report Abuse
http://www.safalniveshak.com/smart-people-investing-five-habits-of-highly-successful-investors/
dont steal this author hard work.

Can't you differentiate between plagiarizing and using others articles with reference and expand it for sharing purposes?

Can't you see the referencing?

2015-01-14 18:18

jester

Bro tbm65. When there is clear reference, it is not stealing. It even acts as some sort of marketing to the author.

Please do not be judgemental and condemn people who would like to contribute in this community.

Good work Intelligent Investor~

Cheers!

2015-01-14 18:22

bracoli

Haha kena tangkap basah

2015-01-14 21:32

kc888

Wow, 15% for 20 years, who can make it?

2015-01-14 23:57

kcchongnz

Posted by kc888 > Jan 14, 2015 11:57 PM | Report Abuse
Wow, 15% for 20 years, who can make it?

You are right. Few people can do it, very very few indeed. I doubt any fund manager in Malaysia can claim it too.

But there is a bunch of people who did it, and did it convincingly:

http://klse.i3investor.com/blogs/kcchongnz/50988.jsp

This group of people made a return ranging from 18.2% to 29.5% a year for a long period of 13 to 28 years, or an average of about 23.5%.

Joel Greenblatt's Magic Formula made it at 23.8% a year for 22 years:

http://klse.i3investor.com/blogs/kcchongnz/51631.jsp

Water Schloss made 20% a year for a period of almost 5 decades.

Who else had done it?

Warren Buffet, Seth Klarmen, Mohnish Pabrai, Peter Lynch and many many others.

What is the characteristics of all these investors?

Fundamental value investing, stress free, margin of safety, value Vs price, risk management, of course.

So I can see the author of this thread can do it with his fundamental knowledge in the long term. Long term is the key word. It is only his psychology mindset which may prevent him from doing so.

2015-01-15 07:59

tony89

enjoy reading the great work of u guys! thanks

2015-01-15 08:10

Intelligent Investor

Hi Mr. Chong,

I agree with your statement. Your help is required to help to build our psychology mindset.

2015-01-15 09:42

Intelligent Investor

Hi kc888,

A 15% CAGR is my goal and I will try my best to get it done.

And, I will continue to participate the yearly Stock Pick event. You are welcome to help me to monitor my progress and provide me constructive feedback.

Thanks!

2015-01-15 09:46

Post a Comment