Investment Portfolio

BTW, you should read this book. I think it is a good book for those with enough money to worry about.
Surprisingly, I found it in the parenting books section at NLB Woodlands. Hahahah...

http://www.amazon.com/gp/product/1118171...PDKIKX0DER

I'm a straight forward person:

1) have you ever worked before?

2) have you ever bought a stock before

1) is important because work experience helps you learn how real world works and 2) is important cause it helps you learn how stock works

Fact that you are looking to be very rich in investing and to buy an island speaks volume to your understanding how investing works. My sincere suggestion is that you take USD100k or less go invest in 10 stocks that you like and see how it goes one year later. Evaluate and see what went right or wrong. it is actually better and cheaper that you pay for "school fees" earlier on. Buffet started buying stocks at 11 to pay "school fees".

Either that or if you think stock picking is too complicated than heed Buffet's advise and do low cost index investing and just focus on asset allocation.

Just my 2 cents..

1) Piggy-backing on other fund manager's picks are fine if you understand their underlying investment thesis and you deem it to be undervalued. Blindly following a fund manager's picks may turn out fine but that is more luck than skill. What happens when the fund manager stops updating about the stock?

2) Following various fund manager's picks is a dangerous strategy especially if all of them are using different strategies. You may think you are having a diversified portfolio, however, in actual fact you aren't really diversifying and just exposing yourself to more risk.

3) Value investing isn't really about making money / becoming rich per se. The initial underlying motive is to ensure that our downside is limited and what follows naturally is the upside potential. Just focusing on upside potential and not asking yourself how much downside is there and conducting sufficient risk management will just lead to disastrous outcomes.

(19-06-2015, 01:07 AM)specuvestor Wrote: I'm a straight forward person:

1) have you ever worked before?

2) have you ever bought a stock before

1) is important because work experience helps you learn how real world works and 2) is important cause it helps you learn how stock works

Fact that you are looking to be very rich in investing and to buy an island speaks volume to your understanding how investing works. My sincere suggestion is that you take USD100k or less go invest in 10 stocks that you like and see how it goes one year later. Evaluate and see what went right or wrong. it is actually better and cheaper that you pay for "school fees" earlier on. Buffet started buying stocks at 11 to pay "school fees".

Either that or if you think stock picking is too complicated than heed Buffet's advise and do low cost index investing and just focus on asset allocation.

Hi , unfortunately I have not worked much at all but I have bought stocks before and on average made money. Yah I agree with you 100k seems about right. Hmm Buffett is a very succesful investor , but he also happens to be part of the "lucky sperm club" , if you read his book. He was lucky enough to be born as an American citizen, the land of capitalism and individualism where his skills in asset allocation could be utilised to its maximum. I was just reading his book and he said that if he were born in any other country besides America, he would never have become so successful . 100k USD in 10 stocks seems about right --- that's what another poster suggested to. Depending on how things go, I might trim / increase Capital / number of stocks ...

I'm not talking about him being lucky. In fact about him paying school fees even when he is arguably one of the best investor. Berkshire textile was a big school fees for him

If investing can be learnt just from books, the most successful investors should be librarians. I'm suggesting you start small relative to your net worth and be patient to learn rather than rush in. Your lack of work experience is already a big impediment in understanding how business works. And if you are born in China you will have a very distorted view that markets work primarily on speculations.

(19-06-2015, 12:58 PM)specuvestor Wrote: I'm not talking about him being lucky. In fact about him paying school fees even when he is arguably one of the best investor. Berkshire textile was a big school fees for him

If investing can be learnt just from books, the most successful investors should be librarians. I'm suggesting you start small relative to your net worth and be patient to learn rather than rush in. Your lack of work experience is already a big impediment in understanding how business works. And if you are born in China you will have a very distorted view that markets work primarily on speculations.

True ... Im glad I was not born in China. China is a really restrictive country, look at the way China blocks websites and restricts free speech. America still the best, Europe 2nd best ! If possible, migrate !

guys obviously with a nick like CGY, and saying he has millions on a forum, sound like advertisement much like the Nigerian Emails.

Someone with such high net worth in diversified assets would not be asking advice here, other than for some trolling fun.

Moderators please issue warning or ban this account.

(18-06-2015, 11:34 PM)CaiGengYang Wrote: Hi CY09, In answer to your questions, my parents are already long retired - they probably have anothe 10-20 years to go. I am their only child so have 100% accountability, their risk appetite I would say is conservative to average. In terms of networth, we probaby have a combined net worth, house, car, stocks, investments, cash included of about 25-30 million USD. Retirement goals : Simply to grow family wealth conservatively ... A small island for fun would be cool if I can afford it 25 years down the line, who knows? My personal dream is to achieve a net worth of 100 - 200 million USD in my lifetime, almost entirely through trading and investing (as that is I believe the best way to get rich short of starting my own company and eventually to migrate to either America, Canada or a Western European country to have a family. I spend very little money, am single and have no particular vices so expenses are not such a big problem. Assuming you were in my position, how much capital would you plow into such a portfolio or would you fancy such a portfolio or if not, what kind of portfolio would you create ? Thanks alot !

Cai GengYang

It seems like you are already into stocks and investments since you said "a combined net worth, house, car, stocks, investments, cash included of about 25-30 million USD".

You said you have liquid capital of USD250k, then your house is worth around USD25-30mil assuming you have close to nil in stock and investment even though they are part of your worth. Wow!

(19-06-2015, 01:18 PM)BlueKelah Wrote: guys obviously with a nick like CGY, and saying he has millions on a forum, sound like advertisement much like the Nigerian Emails.

Someone with such high net worth in diversified assets would not be asking advice here, other than for some trolling fun.

Moderators please issue warning or ban this account.

Nowadays millions is nothing ... a large percentage of Singapore's population have a net worth of millions . If you own a Condo, that by itself could already be worth up to a few millions. If you have a good year as a top producing real estate agent , you could make up to half a million dollars ... a few years doing that, combined with spouse plus investing in stock markets / hedge funds / some luck, its not hard to see why a normal couple in Singapore cant achieve a net worth of 15-20 million. If you are a very successful fund manager or businessman, you can be worth even more ! You heard of Peter Lim, the self-made investor from Singapore who bought Valencia ..

I can see a numbers of limitation you have locked yourself with.

If you have decided to buy at least and not more than 20 stocks in at least but not more than 4 industries, and with the mentality to grow your portfolio quickly to get rich, I think you probably wont get it.

Sorry for pouring cold water, but I think say is easy but you will probably be put off if the portfolio doesn't perform as you have expected.