Leno, when I first read your article this afternoon, I was entertained. It was fun to read.
But after a few hours, I came back to read it again. I found that I actually like your article very much, in particular the table which sets out your returns over past ten years.
As set out in your table, only in 2013 you achieved super return of 93%. The remaining years, you achieved approximately 19% return per annum on average. And I can sense it from your article that you are quite contented.
It suddenly dawn on me - "why not ?"
I also want to lower my annual targeted return. I should be happy with 15% to 20% per annum. The key is to be consistent. If I can do that for next ten years with average of 19% return per annum, I shall be equally contented, just like you. Because it will already have sufficient positive impact on my financial well being.
Some have commented well on Leno's performance while others think otherwise. Calvin thinks Leno not bad. But what about Leno's theory of withdrawing from Bursa last October and after one year then reenters the market this October. Why?
Because the Market will crash this year?
This is what TTB of ICapbiz has been doing for the last 3 years. He is looking for another Lehman Brothers' type of doomsday scenario to pick up fire sale stocks.
Let Calvin Tan Research presents the reasons for not totally withdrawing from the market.
1) The Book says, "He who observes the wind will not sow. He who regards the clouds will not reap."
The farmer does not bother with the direction of the wind as he sows his seeds. What if the wind blows his seeds into the drain? Or on footpaths where the birds could easily pick up. He sows with hope that the majority of his seeds will grow into another good crops. And the clouds? He doesn't bother if it rains. He will still go out to reap his crops.
So is investment. There is always a fear of loss due to the ill economic wind and the dark clouds of another market crash. But life goes on. Imagine if all farmers think the same way and all stopped sowing and reaping. Then the entire world will die of starvation. How absurd!
2) The Wise Book Says again, "Till the very end of time, there shall be eating and drinking, they planted, they built, they marry and they are given in marriage."
As long as 7 billion people exists they will still be businesses providing goods and services. So investments are viable at all times.
Since the cycle of life goes on he who withdraws from it will suffer consequences.
3) The Lost of Sight Due to the absence of light.
The bats which lived in caves have lost their sight. Why? They did not exercise their vision, so after a long time they are incapable of using it. So is in investment.
For 20 years from 1988 to 2008 I was a professional car broker. I know all kinds of cars, vans, jeeps & lorries by finger tips. I could quote the buying and selling price of all types of vehicles (except train & air planes) on the spot easily. I stopped doing this 7 years ago. And today I don't even know how to value a 2nd Kancil or Proton car. Why? Because I have lost touch completely today.
So is TTB of Icapbiz & followed by Leno if you keep out of the stock market for far too long.
There is a saying, "If we rest we rust." The cat must sharpen his claws. Musicians never stop practicing. Beethoven wrote "moonlight sonata" even when he was totally deaf. How? He knew music by heart as he always kept in touch. Music is in his very blood.
Investing is an acquired skill. And we need to constantly sharpen our skill. If we are out of touch with the market for far too long a period we will lose the skill.
2015 will be a tough year?
Tough times never last but tough people do.
And tough people will grow even tougher and stronger through tough times.
u r all welcome ... wish u all the best. And the best is to not buy anything yet. Go rileks rileks ... jogging, listen to music, read more excellent books, take photos ... so that when the time is ripe, we are all fully re-energisers to attack. The month to attack is still october. Unless something changed ... then it might be moved to february next year instead.
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....