He commented on my post about my delusional financial journey and is very encouraging.
We interacted and his views are rather thought provoking. I am not going to summarized our conversation, you can read the comments yourself. I think he gave me a few insights which I will share here.
Insight 1: Simple concept works
He told me not to spend too much time crunching numbers, but spot perpetual dividend payers. He mentioned Colgate, and when I ask about Hupsteel, he told me that counts too.
The all important question: can the earning be repeated and dividend paid over and over again.
ST engineering come to my mind, but for him, it does not have to be blue chips. While his list include ST, he also mentioned TCIL ( no idea what that is) SATs and Noel.
Insight 2: Invest regularly, no need to time the market
I know of many people who take advantage of bear market by keeping a big warchest. CW, AK took this approach. This approach looks easier than it really is, as Munger said:" it takes a lot of character to be sitting on money", and the truth is, we will never know the bottom or peak until we passed it.
He invest a lot on his counters, he just reinvest his dividends, he never bother about the direction of the market, he just make sure he did the homework before he buy and leave it for the long term. His golden words: in the long run, the downside will take care of itself, and whatever is left is the upside. So, I finally find a third real flesh and blood in Singapore that actually practiced Peterlynch's approach and succeeded. I know Kopikat and Cityfarmer also practice this, but I do not have a chance to interact with them this closely. He is already in semi-retirement 5 years into his investment journey. He started 8 years ago. He is only 40.
Insight 3: It is possible.
The few excuses I had for myself: Family committment, children expenses, etc, are no hindrance to him. He has 2 children too. So I should stop deluding myself and making my family the scapegoat. Not withstanding the size of capital, his lifestyle is still the same at semi-retirement. He enjoyed his hawker fare.
Insight 4: Enjoy the present.
He advised against mixing the active and passive income. Let the passive compounded and use the active money to enjoy, he mentioned he still drive his Mercedez. Don't think too much, we never know what the future holds for us and our plans might go wrong.
The above are my own interpretation of our conversation, Paullow, if you don't agree, my apologies, you can leave a comment.
While it might not be new knowledge, knowing how someone has really done it and living by the 4 insights is quite inspiring for me.
This is really what enjoyed about blogging. I really gained new insights by connecting dots when interacting with people.
I think I just clear another dilemma regarding core and diversified portfolio. There is no contradiction. I enjoy number crunching and it is, it is a hobby, so when I have the time, I am going to read up on SIA engineering to size up ST.
The final words: To break the rules, you need to master the rules. I think Paullow has mastered the rules and can afford to front load his research and let it roll, for me, I am still building my circle of competence. Luckily I am enjoying it.
Last warning and parting words from Paullow, don't follow his choices and expect only way is up. He insist he has no idea how his stocks will perform in days, and months. It does not bother him, if volality bothers u like it still bother me now, you have not reached his Zen level, be warned.