Showing posts from 2021

The Psychological Impact Of Maximum Drawdown (MDD) on Portfolio Management

 I suppose everyone is still in the holiday mood after celebrating Christmas with our loved one and about to countdown the arrival of 2022 , a new chapter or year in our journey of investment and I will try to keep this blog post short. There is one very important topic I would like to highlight here before the closing of 2021, i.e “ The Psychological Impact Of Maximum Drawdown (MDD) on Portfolio Management." For every investor, I think drawdown should be one of the most important topics to understand when you start to learn about stock investing. Even before talking about gains or returns you expect from your investment, one should really and clearly think about “how much I can stand or “tahan ” to lose from the investment? what are my risk tolerance and maximum drawdown I could stand when looking at my portfolio in RED , especially the psychological impact of losing sleep or stress? What Is a Drawdown? <Source:> KEY TAKEAWAYS A drawdown refers to how muc

4th Qtr 2021 : Portfolio & Dividend Update

 Time flies, we are now at end of 4th Qtr 2021 and about to enter a new chapter in 2022. Same as life, the market is such unpredictable, while we are hoping to return to a more normal life with more VTLs ( Vaccinated Travel Lane) and opening up of economic activities, suddenly a new virus variant named   "Omicron " hit us, hard and furious, with so many countries imposing travelling ban from South Africa and it's neighbouring countries. World scientists are worried about this new variant because of so many mutations it has vs previous one, it seems that we want to "live with the virus" and "the virus also want to live with us"  ( most of us), from the initial finding, that it seems to be more transmissible. Until the next 2-3 weeks where we will have more data or finding coming out, we are not sure if this new variant ( Omicron) will be more "virulent " and cause more severe illness for those being infected and how effective current vaccine

"Jalan-Jalan" At Parks & Reservoirs- Photos Sharing -2

Getting up early and heading out for a morning walk became our daily routine even during the lockdown period. Most studies show that a 20-30 minutes or more walk is good for our mental health, especially during these "partial lockdown" periods where people are getting stressed with less travelling and social activities. Human beings are a "social species" that interact/communicate and live close to each other, imagine being " restricted "  from interacting and reducing social activities for the past 1  1/2 years, the mental stress and emotional effect is enormous and may cause "depression" easily.  "Jalan-Jalan" At Parks & Reservoirs- Photos Sharing The sudden change in the way we do our work like "work from home " also create some problems and psychological effect/impact when we suddenly have more time at home and have to juggle between kids and works at the same time ( for those who have children). A simple and effective

3rd Qtr 2021 : Portfolio & Dividend Update

  “The big money is not in the buying or selling, but in the waiting.”  - Charlie Munger   “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett   “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pay it.” –   Albert Einstein   “If you do the math, and think about it in any long-term way, the people who do well, are the people who compound over and over again. Compound every year. Don’t try and get rich quick. Try to get a decent return and keep doing it.” - Tom Steyer   "The effects of compounding even moderate returns over many years are compelling , if not downright mind-boggling." - Seth Klarman   "A mere 3% annualised edge will produce a 2.4-fold advantage over a 30 year period - the salient lesson that compounding teaches - the power of a long runway." - Allan Mecham   “Remember the power of compounding. You don’t need to stret
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