T.U.B Investing

Yes. I am almost 100% vested todate and it is frustrating. You will have thought that the vast amount of experience I gain over the years will be able to carry me through this downtrend. But no, at this point in time, the little cash I have left with make me doubt myself at times. This is especially so, when you know US market will fall more after New York declared a state of emergency. So what did I do? I wrote down all on companies I have on a piece of paper and stay away from all share price information. Then I decide which company in my portfolio I will want to add, hold or sell/reduce. I realize I tend to remember the most important points of each company during this exercise. This point will eventually be the main reason why I bought in the first place and my subsequent action. Next, I determine the cash I have if all selling actions are completed. After that, I filter out those companies that will recover the fastest or had declared dividends that will eventually ...

I am never interested in margin before meeting J. To me, I always feel human emotions are unable to control the use of margin. Leverage is such a powerful seductive tool that I do not believe any person can escape from it once he/she touches it. Similarly, to believing justice will prevail, I believe in not giving margin a second look. Nevertheless, I met J recently and he showed me how he used margin to invest and achieved 10% gain p.a. since 2016. To be honest, 10% is not huge. But a consistent 10% is a relatively good return. He basically compares “margin investing” to buying a property. I specifically think it should be compared to buying a 2nd property. This is because his method requires us to consider rental income. I believe we seldom will rent out the 1st property out. The 2nd property will probably be the one to be rented out. 2nd Property Purchase Scenario You decided on a $1 million property. Since it is the 2nd property, you decided to borrow the maximum 45% ...