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Showing posts from May, 2020

Circle of competence

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"I began to understand how multiple factors drive profits at that company. Price movements showed me that the value of Exxon Mobile didn't have a simple relationship to the price of oil. It also responded to interest rates, the value of the US dollar, and especially economic expectations. I also learned more about the supply, demand, and cartel dynamics affecting the price of oil. I realized my knowledge of the oil business and the oil markets was way too shallow to make a call about oil company stock. I'd underestimated the long-term impact of factors driving oil prices down." Above is an excerpt from a book I have read some time ago (can't recall, but I think is  this  one).  When one decides to invest a substantial portion of his money into an asset or company, it should not be based on hope or assumption, it should be based on understanding. One needs to understand the risks involved, what influence the company's earnings and the

Spiritual food I

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Climbing mountain We are all travelers climbing the mountain of clarity via our own path. The path is unique to each of us because we are unique individuals. Many times we are hindered from our climb by the 5 hindrances as described in the video below. They are namely -  1) Sensual desires  2) Ill will / aversion  3) Dullness / heaviness   4) Restlessness and  5) Skeptical doubt Everyone who aspire to reach the peak will gather different experiences along the way. We cannot ask other travelers and expect to get the same experiences as them, nor extrapolate what the path (truth) would look like. Our views when we reached the peak may also vary. Live the present moment We often lament on the past opportunities that we have missed but forget to look at the present (or future) where our next opportunity lies. We fail to accept our current situation and live on hope.  We become reactive instead of proactive. Ask ourselves -

10th year blogging anniversary & some brain food

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April 2020 marks my 10th year anniversary of starting this blog. It felt amazing as I look back on the paths that I have trudged - it has been a journey of many ups and downs. A sincere thanks to my readers who have accompanied me throughout the years, and fellow bloggers who have shared pearls of wisdom with me by commenting on my blog. It isn't flattering to celebrate my 10th year of investing with a bloody  red stock portfolio (due to the black swan event that unfolded too quickly for us to react). I was hoping I could boast some multi-baggers or a first bag of gold, but often, reality differs. That's life! Now I have learnt to take things in stride. Hind sight wisdom again, I might have also missed the boat of mega dip-buying in March as I was kind of expecting a dead-cat bounce . My current portfolio sits on a -6% (based on capital spent, excluding div yields), thankfully for the green marshal  Mapletree Logistics Trust which gained 40%. My biggest takeaway