even though i don't agree with some stocks picked by cold eye but the results show that he is the best retail investor in malaysia! those so called malaysia warren buffett should learn from him!
for someone like Warren Buffett or cold eye, investment is only a rich man game. like a poor student play online game, just to kill time or get satisfaction. what's the point of a multi millionaire wearing like a poor old man, to avoid kidnaping may be, hehehehe......
the problem is sometimes when u make your 1st billion, you are already a 60 yo "look like retired" man, how to enjoy sport car and sexy models? unless you are facebook founder or playboy founder. :P
Frankly, it's not easy to strike a balance. They are rich probably because of their frugal lifestyle since young. If they have 'drive sport cars, play model' mentality, they might not what they are today.
may be that's the different with some of us and the frugal super rich, when we make 1 mil, we want to buy a beemer where the super rich reinvest the 1 mil and keep on driving their 10 years old car. :P
I got one close friend also the same. He is a multi millionaire now, owns few bungalows, stocks and other assets in millions. All this while, he only buy 2nd hand car until he is almost 60 years old now :D
Sometimes, when you think of it, even though you are making 20k a month, is it worth to practically burn RM3K a month, just for the sake of a beemer car?
If we use Robert Kiyosaki theory as a guideline, we shouldn't buy luxury car until our passive income is enough to pay for that car. An entry bmw 3 series cost around 250K, installment would be RM3K for 9 years loan. Passive income of RM3K= RM36K/yr. Assuming a yearly 6% return on the asset, you would need an asset worth RM36K/0.06 = RM600K.
So without an asset worth 600k generating 6% yield, you shouldn't buy a beemer. LOL.
Then you shouldn't use ngam ngam 600k & 6% yield. Buffer it higher to 800K yielding 8%. Then you are officially 'qualified' to own beemer cost RM250K ! LOL
2nd hand 3 series, is quite 'cheap'. beemer depreciate around 10%/yr for the first 3 years. Now a 3 years old beemer is around 150K. So installment would be around 1700, means yearly is around RM20K. So a portfolio of RM340K yielding 6% is enough for this LOL
Today's money is just fiat money made of paper with low intrinsic value...and the govt keeps printing them like no tomorrow
The full potential value of money can only be unlocked once it is SPENT either thru consumption or investment, otherwise the value got trapped in a piece of paper
drive kancil less risk on kidnap and robbery ma, as long as u drive slow and steady and not go far far, he drives from Tropicana to giza only, accident risk lower
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lching
1,402 posts
Posted by lching > 2013-08-13 12:41 | Report Abuse
well done!