Saturday, August 22, 2015

Random thoughts: A conversation with my wife who is jittery about the market

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) 


6 comments:

  1. Hi SI,

    At least your wife is able to engage you in some meaningful conversation. Try talking to my mom. LoL

    ReplyDelete
    Replies
    1. Hmm... Derek, the toughest conversation will be my FIL. Lol

      Delete
  2. Still now my wife never have fate in the stock market after seeing her father and two brothers wipe out in AFC and CLOB Saga. Money rotting in the bank is safer. LOL!

    ReplyDelete
    Replies
    1. Hi CW,

      I am sure it is painful. They might not have recover from it ...hence the scar is still there

      Some experinced are really crippling

      Delete