A conversation with my wife who is feeling a bit jittery just a day after buying. LOL. Some of the conversation are edited for easier reading. For anyone who might be feeling a bit unsettled.
Wife: Are we buying too much? Shouldn't we have some cash as spare?
Me: huh? When u told me u have X amount of cash and I ask u if u are comfortable with having X\2 as investment, u say ok. Now we are only X/4 vested. U are just buying back what u sold off earlier.
W: ya, but I buying more than selling. I thought I will sell some before I buy more?
I: No, that's not actually what I have in my mind when I say building up a base where dividends will start to grow to a level to which we might need not to work or become a significant income supplement.
W: aiyo! How is that possible? Stop dreaming.
I: why is it not possible? Maybe not in the short term, maybe not early retirement, but Defintely possible if u are thinking about it paying for our overseas trip when we are older.
if u want to buy sell buy sell for capital gain, then that is gambling because I dun have the skills for that. But I do have a plan for a longer term of things and what to do even if market collect another 15%.
W: mum told me even ST engineering can go to $2.
I: why not? It can go to $1.5 for all I know, that's why I always ask u to buy stronger companies that keep paying dividends. We might be far from getting the bottom right, but look, ST is giving 5% yield now, with a track record of stable or growing dividends, assume u hold it for a decade, u have get back half your money, and even if we cannot benefit from the bottom, I believe our av. Price should not be lower than the fair price when market eventually recover.
W : when times are bad, where got dividends, even if they dun collapse?
I: with the exception of Sing Shipping, all companies you bought are blue chips with unbroken dividend records. If they fail, Singapore is in a really bad state. Also, we are not buying a single company with more than 15% of portfolio, we can still do ok even if we are wrong with 1 company and it collapse.
W: (not convinced look.)
I : look maple industrial parent is link to temasek, Acendas is link to JTC, what are u afraid of? Anyway, I told u not to look at the market after u buy, just trust me to ask u to buy and sell
W: a.. Our son birthday ... ....
I: ( thoughts: talk about flicked minded... zzzz)