DISQUS

Mr. Bear · 2 years ago

I rather phase it out. Aimed for undervalued markets or post divident. The chart above is somewhat bias. The kid seems to not invest anymore after awhile, why?

But for sure, if u have other venture that makes over 10%p.a. you seriously can rethink your position.

yowchuan · 2 years ago

Because the idea of the chart is to illustrate how staying in the game for a longer period of time (even without investing further) is important in accumulating wealth, as opposed to late-comers who cannot afford to take higher risk and having much lesser time to let the compounding interest work. Hence we are looking at a rather rigid example, not something you can easily find in a real-life situation. This figures are mainly used for the simplicity and to illustrate the points mentioned.

Again, for the sake of this discussion, the risk/return applied here is restricted to fund investment only and not into other ventures such as starting up your own firms/businesses, since the risk factors and rewards are totally different.

KCLau · 2 years ago

I think Yow Chuan had done a great job here illustrating the investment mindset. Nobody can time the market.

Maximise what we have now - just invest with all the money you can afford.

yowchuan · 2 years ago

There are many techniques used by the fund experts to beat the index, and of course each techniques has got its own pros and cons.

But one thing has proven to be true again and again, that the longer you have your money in the game, the bigger it will snowball.