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27-07-2023, 11:46 AM
(This post was last modified: 27-07-2023, 12:00 PM by specuvestor.)
This is a good simple example of opportunity cost on AA. If you use OA or SA to invest through CPFIS then your opportunity cost is actually 2.5%/ 4%
Just as a reference GIC SGD CAGR return is about 5%+. And we know that most people lose money in CPFIS
(27-07-2023, 01:14 AM)Wildreamz Wrote: Agreed.
Everyone knows according to EMH, we are not favored to beat the index, long term.
We also know, the approximate index allocation that suit our risk appetite (be it CPF SA, dividend etf, STI, SPY, QQQ, VTI etc.).
Hence, "your opportunity cost", is probably the best benchmark.
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(27-07-2023, 08:31 AM)i4value Wrote: If you come from the angle that you want to improve yourself, then I am not sure opportunity cost is a good benchmark. There are many investors who have shown that you can beat the index and that EMH is not really true. So the best benchmark (for improving yourself) is to look at the great investors and try to develop your skills to match them.
Could you share how long you have been investing and what is your portfolio returns on an annualized basis during this period of time?
Please do your own due diligence. Any reliance on my posts is at your own risk.
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(27-07-2023, 11:46 AM)specuvestor Wrote: This is a good simple example of opportunity cost on AA. If you use OA or SA to invest through CPFIS then your opportunity cost is actually 2.5%/ 4%
Just as a reference GIC SGD CAGR return is about 5%+. And we know that most people lose money in CPFIS
They posted USD denominated 6.9% CAGR over 20 years and nominal real returns of 4-5% CAGR. Respectable, but probably below SPY (
http://www.lazyportfolioetf.com/etf/spdr-sp-500-spy/).
https://www.gic.com.sg/newsroom/all/gic-...rtunities/
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger