Saturday, April 4, 2015

Random thoughts: Cooking and investing

More for Fun sake, the similarities in cooking and investing

Cooking: It is easy to cook a edible meal for people to eat, but if I want a sumptuous meal that makes me a celebrity chef, think that is kinda of tough.

Investing: It is easy to learn how to invest, but if I want to be the next celebrity investor, that is a different ball game. Learning to invest to earn some returns to beat inflation, in particular is not really that tough, but if I insist of XIRR of X%, then again, the ball game is different. Just like cooking for my mother and starting a business of cooking at the kopitiam is 2 different matters

C: If I marinate my ingredients earlier and longer, it taste better.
I: Invest earlier and let compounding work for me.

C: The fresher the ingredient, the easier to have the natural taste without too much seasoning. How do I choose the ingredients then? OK, my sister bought it from organic shop, I just check with her the price today, and realized it is 8 times more expensive!!

My own method? Go to the market earlier, buy and cook immediately. It will be fresh. Don't deep freeze it then thaw. I am not sure if I am sensitive, but I am super sensitive to yu xin wei. The smell of fish. Fresh fish do not have that, when my MIL thaw fish and prepare it, it is super "smelly"

I: About more expensive means more fresh, someone will slap me. But in investing, having some rock-solid blue chips (ex.) might not be a bad idea. So, how do I get a chance for morning shopping with the market for freshness? I see it this way, look out for companies that keep refreshing itself or its assets. Look at capitaland AEIs of its malls, It is always on-going, even Ascendas reit is regularly buying, AEI and even selling older industrial building.

Then how to maintain freshness by cooking once you get the ingredients? What is the cooking? Hmm... The actual cooking is the actual buying and selling?? Maybe it means when you are ready, be decisive ?? LOL just thinking aloud here.

C:   There is a trade-off after certain optimal level between taste and health. If something is super tasty, chances are it is not healthy, with plenty of seasoning. If I want super healthy, there is a cost to it, I shutters when I think of the organic and the type of seasoning and ingredients my sister bought for me to use in cooking.

I: there is a trade-off after a certain level between thrill and satisfaction vs boredom and the health of my portfolio. I wanted actions, even when I am keeping money at my side and increasing my emergency fund, I am still looking at counters to invest. LOL. Boredom will kill me sooner or later.

C; There are so many methods to cook, steam, bowl, fry, bake, grill etc. I do not need to know or be a master of all of them to make a meal, but if I want my parents to keep eating it in the longer run, I still need to learn new methods or try new ingredients. My mum can like my steamed dou gan with bak chor, but I wouldn't dare cook it everyday.

I: We need not be proficient in every methods when we start in investing. But in the longer run, it is important to keep expanding the circle of competence. I get a F in this area. I have kind of stop learning new valuation method etc. There is no need to be method crazy, but I think I stagnant for too long.

C: My mother, my sister, my friend have suggestions on how I should cook, and from reading recipe books, I have some ideas what to do too. The best way to learn is to do it and eat it.

I: The best way to learn investing is to buy your money into the market and experience the loss and win.

C: I am afraid of chow da (Overcooked), so I do not dare to cook with big flame. Now, that I have done it a few times, I know when it is ok to maximise the fire.

I: Until recently, I always fire big big good (Mostly fully vested), now, I scare liao. Small small fire, when time right, then hoot. Just don't chow ta can liao.

Finally, only when I start cooking, do I start appreciating the taste of food better. Only when I start investing, do I start appreciating the importance of money. LOL


  1. Hi SI,

    Indeed, only when we start cooking then we will know and appreciate the food that we eat. Sometimes, the act of doing makes one appreciate things more. Good health for your family :)

    1. Indeed, LP.

      When I am a undergraduate, I work part time as a kitchen crew at NYDC at holland V. My friends came over to visit. Ask me to join them for dinner. I say ok.

      Thereafter, they went to a cafe for dinner. The meal costs $30, it's was the same amount for a shift pay. I felt the pinch that I work for nothing...

  2. Hi SI,

    Love this post! I see many similarities between investing and cooking too! To me, investing is a lot like cooking. Following an investment strategy is like having a recipe in your hand. It is only a guide. Adhering 100% to either might not always work for you. At the end of the day, whose money is it in the bank? Mine. Who’s the one that’s gonna eat the food? Me! So long as it suits my taste, that's the most important. There is no need to go around pleasing other people =)

    1. Hi TI,

      I certainly hope my parents are pleAsed with my cooking. Yup, our temperaments will lead us to our investment style.

      Too bad, I am too risk adverse and KS to be a trader, yet too impatience to be a value investor.

      Just have to find somewhere in between

  3. Same as cooking. Don't get burnt. Once burnt. It is thrown away.

    1. Once burnt, throw away.

      In investing, it is easier to be get burned than cooking. Cooking, as long as your keep stirring, and keep your flame low, the chances of chow da is low.

      In investing, there are 101 ways to chow da

  4. ACCICB once cooked noodles and dou Miao for himself and he told me it tasted like swamp thing ;p
    Thankfully he's better at investing/trading than cooking!

    1. Hmm Joyce,

      Sorry huh, what is ACCICB? Your hubby ? Swamp thing? No la, I am sure it is edible just that he want the finer taste before it gets past to u

  5. hmm temperament,

    you got me there... I share your same sentiments, after I start teaching for years, I no longer have unrealistic expectations on this job, I no longer think I can change the world, or I can be a angel for change.

    as for investing, if you still investing for others, I think the reverse it true, you either is a fund manager, which means you are super successful, or you are just asking for troubles


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