Friday, October 21, 2016

18 years later and you did not beat the market.

Does it help that I am not selling you anything? Perhaps. What I am selling you is a story, based on 18 years of experience of what works for the common investor, one that I am already starting to sell to my 7 year old. I prefer he start a business, several businesses for that matter, rather than get wrapped up in trading stocks.

I am finding the time spent researching for the portfolio and worrying about it and yet not beating the market by a big margin is really a waste of time.

Most retail investors are more suited to the index investing arena and spending the time saved enjoying life or working hard. Either way, they would end up more satisfied and richer.

I am planning to transition back to an all properties portfolio when the time comes. The returns from properties are plain amazing when compared to a bond/stock portfolio. Stock market is really an exercise in futility and I don't want to waste my time doing that when the returns cannot match what could be handled to me from a property (assuming you buy and hold 10 , 20 or 30yrs).

Naysayers will talk about the leverage offered and you can do the same for stocks and get amazing returns. I say to them, please go ahead and try that  :) Leverage like you would with a property (20% down, and 80% leverage) and go buy your stock. Tell me how it turns out.

What about property gains are maxed out and you will not get similar returns in the next decade. Well, if that is the case, I would bet the probability of Singapore stock market going nowhere for the next decade to be similar.