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<\/p>\n
Out of curiosity, I spent some time today to tabulate the returns of a stock portfolio I guided two friends to set up some time last September.<\/p>\n
Although it has not been a full year yet but by some\u00a0calculations, I\u00a0was pleasantly surprised to find out that the average annualised return hovers at about 9% for the time being. There were a couple of stocks that are in the red but overall, it was still positive.<\/p>\n
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I consider this to be a pretty good return, considering the average annualised return I got myself when I first started out was only a miserable 1%. It does appear that my portfolio has improved since then, as my current portfolio average annualised return is also hovering at about 9% and I didn’t really managed it very actively.<\/p>\n
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Anyways, I’m just glad that both friends got a positive return on their portfolios. I’m even more glad that they decided to listened to my advice and had took\u00a0action and\u00a0started to create\u00a0their own portfolios. I know they had trusted me a lot in order to switch from simply relying on others to manage their own portfolio to doing it themselves instead.<\/p>\n
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But what’s the best thing about this?<\/p>\n
It’s that while we were busy working (and we work really hard at our full-time jobs), our money is not idling away.<\/p>\n
Think about this – my friends spared about $20,000 each for their startup portfolio. And they use their CPF monies. The interest in CPF OA currently is 2.5%. Their average annualised return of 9% has given them about 3.5 times more interest.<\/p>\n
In other words, just by taking action, and proceeded to\u00a0set up their portfolio, what they had done effectively, was that they had given\u00a0themselves a 0.5 to 1 month bonus depending, without having to go through the agony of performance appraisal. Is this good or good?<\/p>\n
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My point is, it’s important to get started.\u00a0<\/span><\/p><\/blockquote>\n
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It’s even important to get started while we still have the ability to.<\/p>\n
While we still have a steady income to be able to squirrel some money aside for our investment portfolio; while we still have the luxury of time for compounding to work its wonders.<\/p>\n
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Sometimes, life takes us away from our priorities. I was really very busy with work last month and couldn’t spend as much time as I would like to whether\u00a0it’s for stocks monitoring, learning\u00a0and\u00a0trying out new techniques or just checking out new investments. I tried and could read up on articles when I can, but I knew I was very much overwhelmed last month. Therefore,\u00a0I was glad that my portfolio was on good tracks because I’ve built its foundation when I had the time previously for me to be still able to reap the benefits.<\/p>\n
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The above are examples of my two friends. A true and good\u00a0story.<\/p>\n
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But the truth is, there are more people unlike my two friends.<\/p>\n
I have more friends who have not started\u00a0doing anything at all. Some may have genuine constrains. For some, fear, laziness and procrastination delayed them. And I have a close friend whom\u00a0I love and respect a lot, but is also one who never fails to be skeptical of everything I say and do. And naturally, until today, has not taken action.\u00a0I recalled in one of our last conversation, I mentioned how I shortlisted a stock (having monitored it for some time and that it falls within the criteria I’ve set out for a long term portfolio). My friend\u00a0disagreed, mentioning about the importance of stocks having growth potential which the particular stock I had shortlisted does not possess at all. Today, I’m happy to say\u00a0that this stock generated an approximate return of about 24%.<\/p>\n
To speak the truth, the nice run up did took me by surprise because it came pretty fast and furious. But when I thought about it, this happens all the time in stocks investing. And that’s why it’s important to start staying invested to catch nice little run ups like these.<\/p>\n
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Sometimes, we may catch it, sometimes we don’t. I mentioned about taking action earlier. I know for many, there exist this fear – what if I take action and I lose? Therefore, the action needs to be paired with the correct knowledge. If you think you need a little bit of help on how to get started, feel free to email me.<\/p>\n","protected":false},"excerpt":{"rendered":"
Out of curiosity, I spent some time today to tabulate the returns of a stock portfolio I guided two friends to set up some time last September. Although it has not been a full year yet but by … Continue reading