k_investor_selfEval

The more specific/unusual the better. I hope to develop more strengths, and give my kids and younger friends.

• —  my strengths, half-ranked by importance and rarity/uniqueness:
• [a] compound return — some insights into projected exponential growth based on compound return
• [a] eq regime change — some insights into market regime change, which cast doubt on a lot of stock market analyses, including published research papers
• CPF knowledge — more than most people.
• favor incremental small amounts in each investment decision. Most people commit too fast too much into risky investments. I made the same mistake many times (FXO, commodities 1997). Small amounts allow me to quickly get my feet wet, without a lengthy due diligence including (for stocks) last-minute news-analysis.
  • Compared to mutual funds, PE etc, I feel ETF/REIT/Stocks support faster, safer learning curve.
• NAV-erosion of high-yield mufu
• some observation about U.S. vs non-US stock market
• SDXQ property — most people don’t realize the low NGRY due to large sqf, perhaps because they don’t care about rental yield.
• NGRY and haircut — most people barely look beyond NGRY without knowing the magnitude of the haircut.
• mutual fund annual fee — some wisdom (insight) about mutual funds cf stock-picking
• my math/analytical skill to compute actual PnL taking into account of all costs + gains known to me. This may not be 100% all-encompassing, but better than the PnL analysis by the lay public. The small costs + gains are small IFF you are (naively) fixated on windfall, but not small when you come to terms with the small return rates.
• stable burn rate — gives me quiet confidence during my long-term investment planning.
• [a=academic theories]
• — Below are not “strengths” per-se, more like preferences or personalities, but each is an important feature that define me as an investor.
• my focus on current income when most fellow investors focus on total return which is usually dominated by asset appreciation. Though not a strength, this gives me a higher current income for the capital amount.
• risk appetite (and some limited experience) with overseas properties
• my aversion towards endowment products

— significance of these strengths? Not to be exaggerated or belittled. I want a fair assessment of the significance of these strengths.

However /tempting/ it is to derive and assign some numeric “value” to each strength, such numbers would likely be extremely unscientific and un-objective. Instead, it’s more useful to ask questions:

Q: Will these strengths grow in significance as my income drops in older age? I am 90% certain.
Q: Will these strengths grow in significance as my asset grows? I am fairly certain.
Q: Will my “worldly” wisdom grow with experience, in this and other domains? I hope so. Look at grandpa.

Investment loss can be devastating, not to be taken lightly.