Today during my work pantry break, I just nice have an opportunity to talk with one of new sales colleague in my company, He look around late 30 and is known as our colleague as Joe.
He start the chat with a lame opening line by treating me coffee…from my company (which supposedly to be free) so we take our cup of drink and sit down at the nice sofa in our pantry area.
We start the topic by talking my educational background, i graduated from which uni, my age, my relationship status…and i tease him with his age, he look like beginning of 30….
So as the talk goes on I explain that the reason i am not yet marry is because I am just 25, i would like to build my financial stability first. The reason I will not so fast go into buying a house because I would like to do some investment to generate passive income first. My concept to get a housing is not solely from my saving or my active income but should be depend on passive income (big portion of the payment like 80%). If you see housing as an asset, for me I would like to differ. My definition of asset is when you own it but for housing most of us “own” it with loan first…this is actually a liabilities according to my own definition. Although if you use the loan well, bad debt can be a good debt but i know with this kind of investment I can do better in equities (shares) investment and commodities trading.
When i talked about passive income, Joe got mentioned about I believe you talking about shares..dividend shares but with his experience so far dividend share is not so fantastic that it can generate lucrative reward while you able to grow you invested capital. Most of the time when you get your dividend, your principal will be affected and get hurt with the long run.
I agree with Joe to some extend but i beg him to differ with some technical analysis. That point onward I don’t have much sharing from my side about how i am able to strategize my dividens portfolio to at least triple return in less than 8 years horizon. But main point here is a lot of people think that building dividens portfolio is one time thing. On top of that they neglect T.A (technical analysis) There is where their entry price always at the peak and reversal trend (plunge!). Believe me, building a right dividens share in a right way to generate passive income is feasible as long you are able to widen some perspective, if you thinking putting a dividens portfolio across 20 years horizon and you are able to triple your dividens share portfolio capital, it might be very challenging…you might be very lucky if you can have it with just a 100% return. When we talk about passive income it doesn’t mean that we have to manage it passively. That is one of the core rules of my dividend portfolio strategy. Regarding the strategy I will share in another article.
So we continue talk about investment idea like value investing, growth investing but Joe share something interesting with me. He told me how he met co founder of the Quantum group of fund — Jim Rogers at Border bookstore. When he talked about oil commodities with him and share his analysis with him, Jim Rogers is very surprise that Asian country people actually interested in this topic. To some extent I can understand what he mean, as commodities instruments is something really rare for investor to talk about although most of them invest in stock (and this conversation take places like 4-5 years ago).
Then, Joe share with me about a book call Big Money. He ask me have I ever see anyone throw out a roll of money to pay in restaurant or when you go to Casino you just throw and gamble the money like you don’t even care (that roll of money is like 5 digits and more). This is his first time he see something like that and he try to have some chit chat with him and understand how he become such rich is because he invest in a company share. Then, it take few years for the shares to go up from 1 dollars to close to 10 dollars and split to 10….then from 1 dollar run all the way to 10 dollars again…that’s where his investment undergo 100 folds. 10,000%!
He make an interesting point is that, in our investment journey we only need to correct threes time (according to Big Money book). We can make counter of mistakes but what is important is when we are right, how big money is the right decision generating. That was like a WOW for me…throughout my investing journey i always emphasis in high probability trading or investment..I always try to make at least 9 out of 10 profitable trades but this kind of concept is like new to me and I will say what Joe say is really right (with my experience so far).
When i start my investing journey if you tell me you can make 10 fold I will say you are dreaming..you are not doing investing..you have fall into a scam or you are gambling…don’t say about 100 fold…but when I understand and have see wide enough of the market..to earn 100 fold in this stock market is really possible. It just need an amount of dedicated hardwork to do some research, scanning ,analysis (T.A and F.A) and PATIENCE! With the right strategy and plan with a bit of luck…100 fold is just like snapping your finger. It just happen!
Although say that but deep down in my heart I feel that consistency and high probability still my favorite strategy as most of the investment timeframe…big money is not always appear… I still favor with consistent invest and trade the market so I will say i am comfortable with those stategy. But with learning this new idea…I can bring dynamic investing to a next level.
So, what is dynamic investing? It is an investment strategy invented by me. That will be another topic 🙂
Joe also talked about how he friend play margin and lose 900k..so here let me share with you all as I am doing hedge fund…margin for us is hedging tool… it is a dangerous leverage tool. I believe this is the ground rule for every investor to NEVER TOUCH MARGIN not matter how good you are. Although margin can help you earn like 30-100k in a day simply…but please remember you can lose the same amount too! One wrong decision can wipe out all your capital plus incur extra losses! So guys, remember, rules no.1 in investing, never touch MARGIN!
I have fun with the conversation with Joe. I hope you do too 🙂