Monday, 24 November 2014

How many long-terms can we afford

It never failed to intrigue or impress me each time I have group conversation with young people. Some could articulate well on how they see good personal wealth management should be. Stock market investment not necessarily is one of the tools for good wealth management. Some see it as a devil indulgence while others see it as part and parcel of wealth management. To some extreme, some don't even know what and how stock market works just like they don't know how insurance-investment-linked scheme works. But surprisingly, they willing to part their money in insurance scheme even on monthly basis without knowing or asking hard questions on how it works. Here I am not insinuating that investment-linked insurance scheme is unwise investment. Far from it. I am just asking why people treat investment-linked insurance they way the did but not on stock market. I mean, "will you willing to part some money into stock market in monthly or quarterly basis the way you did for investment-linked insurance?". Most, if not all, responded with no or unsure answers and others said investment-linked has money saving feature in it besides one gets life insurance coverage. Rightly so. One thing for sure is investment-linked insurance is a long term commitment. Not one year or two years commitment but probably 10 years or more. I would say most people have no problem to commit this for long term. But when it comes to stock investment, most would not commit the same. What I want them to give some thought is why not they consider stock market as long term money saving tool the way they see investment-linked insurance.


The other day, someone in this blog asked me about what is the longest stock I had ever invested. That is a very interesting question. This question really triggered me to give some further thought about how I see long term investment once again. How many long-terms can we afford in our lifetime? The ultimate reason why we invest in stock market in the first place is to make money, regardless it is short or long term. If one can make 100% return in 5 years is good. If one can make 100% return in 3 years is even better. It is the best if one can make 100% return in 1 year! Of course some will dream of making 100% in 1 month. Nothing wrong. But the question is how many will see it as a life long learning and enriching experience besides making money?


Let me tell you this. A person with net worth of say 10 millions will see long term definition very differently from someone with net worth of say 100k. That person of net worth of 10 million will probably enjoy and satisfied even his long term investment gives him 50% return. But for a person of net worth say 100k would probably would not be satisfied even manage to make 2 or 3 long term investments of 100% return in his or her lifetime. What I want to drive at is don't look at making money from stock market purely on money sense alone. You will never satisfy even if you make 100% return. One would probably end up chasing an endless unsatisfied dream over and over again. But rather to treat stock market investment as life long learning and enriching experience. If one take this approach, one will take out the stress when investing in stock market.


By the way, OCK goes ex-bonus today. The price adjusted and open below a dollar. We shall see how's the Q3 results look like soon.


Its price open at RM0.95 upon ex-bonus today.


  1. hi, unclez,
    I have followed your advice to buy ock, presbhd and dsonic. I made some profit for both ock and presbhd but huge lost on dsonic as I bought at rm2. Can you please share your thought whether I should cut lost and stay invested? What's your view in the fuelsub?

  2. Hi unclez
    Thx for your insight and inspirations to everyone here.
    May I check with you as per above blogger
    What is your point of view of dsonic?
    Thx and appreciate on your reply.

  3. Indeed OCK dropped below a dollar now but there are more shares owned. Do you think it is still worth going in? Thanks for any insight.

  4. unclez, kindly give us your thoughts and comments on dsonic... appreciate it...

  5. We can't decline the facts that the ultimate reason why we invest in stock market in the first place is to make money, as depicted by Epic research.

  6. "But rather to treat stock market investment as life long learning and enriching experience. If one take this approach, one will take out the stress when investing in stock market."

    I cannot agree more. Stock investing is a journey of betterment for one's thinking, courage, and character.

  7. I have recently started out investing in the stock market and I would like to attest to uncle z's advise. It has indeed been enriching for me. Not because I've made tonnes of money. But because I've made some and I have lost some. Coming into theater lured by the rally before the dark October, and during the sharp decline brought about by the drop in oil price has indeed change my perspective of investment and wealth. I view the market very differently now and it is through this view, I am even more determined to stay in the market to earn my returns. One baby step at a time