Thursday 18 October 2018

Anyone and Everyone Can Have a 10 Bagger! Bao Jiak One!

I guarantee it!



Start with $10K. 

Put it under your mattress or biscuit tin.

Every year add the same $10K amount to it.

Wah lah!

10 years later, you can have bragging rights on how you've turned your "investment" portfolio into a 10 bagger!

If cannot earn and save $10K per year, no worries!

Can reduce the bar to $1K per year!

We are counting in percentages remember? 

So any amount also can. Even $1 per year!!!

I don’t want percentages; I want money!


  1. Buy ToTo. Tio 3 numbers is already 10 baggers.

    1. CW,

      Yup. That's why size matters ;)

      Imagine your Keppel is "just" 1000 shares?

      I hope when I have a 10 bagger at the stock level, my holdings is not just 2% or 5% of my portfolio!

      Talk about head banging on the wall...


  2. Smol

    Capital injection always blur yhe returns. But no capital injection also like flying with 1 wing.

    1. Sillyinvestor,

      Its not so much about bragging rights as anyone who knows a bit about numbers can see through the smoke and mirrors. (That's why only retail amateurs use XIRR)

      Those who can't, got bigger issues to resolve anyways!

      Its more about alignment of our investment strategies with our cash generation abilities (Earn more and Save more).

      Those who can generate $100K (or more) per year cashflow to fund their investments, they have earned the right to say,

      "If the price goes lower, I'll buy more!"

      "Just as long got dividends, I don't care if got unrealised losses."

      For those who are not corporate high fliers or own a thriving business, well, you may want to revisit what's the most important rule 1 and 2 from Warren Buffett ;)

      Come to think of it, is that why Warren Buffett, despite his cash generating insurance business, still sits on a mountain of cash?

  3. Hi SMOL,

    I don't see 900% gains leh...

    In your example above, the IRR is 0% which then becomes -ve after inflation :P

    Alamk ... I'm still a fan of percentages. I find it's a truer picture of performance compared to absolute numbers.

    Who would you pay more attention to for investment --- the guy who grew $100K to $500K in 5 years, versus the guy who grew $1M to $2M during the same time?

    I would see how the guy got his $1M in the first place. :)

    Of course having a proper context is important ;)

    There is a big difference between CAGR of 15% with 40% volatility versus CAGR of 6% with 4% volatility.

    Maybe bloggers should report their Sortino & Sharpe ratios as well? LOL!
    Btw these risk-reward measures are also percentages! ;)

    1. Spur,

      $10K to $100K in 10 years not 900% growth? 10-bagger wor!

      OK, its not investment gains; but savings gain ;)

      Who cares whether the cat is black or white?

      As a gold digger, I would target the guy who made 1 million over that guy who made $400K ;)

      I wouldn't even take a 2nd look at the person who grew $10K to $100K over 5 years. Buy a new car, zero money left :(

      Without 2 million in investible assets, you can't get into the ranks of high net worth individuals.

      What's good enough for investment banks is good enough for me!

      Try applying for private banking services with percentages ;)


      No need find so many excuses and come up with so many metrics.

      In Singapore, the first demarcation is got car, no car?

      Then its public or private housing? Preferably landed ;)

      Now that's how if we want to peacock in the real world!


    2. Hee hee!

      Wanted to add on the below earlier but more important things got in the way (talking to wifey & watching TV) ;)

      The hidden between-the-line message is "Is it easier to achieve $50K-$100K profits from the markets consistently every year ... or to get the same amount thru a job?"

      And that's why parents still force feed children with tuition & push them into pedigree schools & atas degrees.

      No parent pushes kids to master investing or trading, at least not before the typical tuition, enrichment, sports, music etc are covered first. Can't get 280 for PSLE or 6 points for O-levels want to do investing haar, you sway zhai?!? LOL!

      People who reach $300K-$500K annual income by their early-30s (seems to be the benchmark for high-fliers in developed cities including S'pore) aren't bothered with "investing" or "trading" or "FIRE". Even for those who work as investment bankers or who are portfolio/fund managers!

      Or maybe they just see me no up & clam up when I try to pick their brains! LOL!!

    3. Spur,

      Unless of course one has 5 million dollars spare cash to invest - then achieving $50-$100K cashflow consistently every year would be a lot "easier"!


      I cheer youths to have dreams! The crazier the better! To chase rainbows!

      But when its just "Ah Q" make believe delusions to patch the hole in their hearts for being "mediocre" in their day jobs...

      That's another kind of dreaming :(

      Eh, give you tip on picking other people's brains. Buy coffee first!

  4. Hi SMOL,

    Seems like you are poking at those who are using self-deceiving enhanced performance metric to make themselves feel good.

    Having an accurate sense of reality is important in making the right decisions. An accurate sense of reality comes from having accurate metrics to measure performance. Self-deceiving fake enhanced metric to make oneself look good is misleading and even dangerous when money is involved.

    Investment performance measurement gets complicated when the investment account gets injection from cash savings. For people who are deciding whether DIY investing is worth their time, they can compare their absolute annual investment gains versus their annual salary. If the investment gains consistently exceeds their salary AND they like the investing game, then investing is worth it and they can consider allocating more time to the activity. When investment gains are consistently poor despite effort being put in, these people should consider investing in passive funds and/or work harder in their career.

    1. hyom hyom,

      There's a difference between "poking" and "poking fun" of others.

      My "poking" is more for those who are falling asleep on the wheel while driving :)

      Zen priests use a big stick; I use my little pinky. LOL!

      You are so right!

      No need precision in 2 decimal places one. If our side gigs are more profitable than our day jobs, we will know its time to quit and do the side gig fulltime!

      The sad truth about retail investing is the majority are using their day jobs to patch the holes in their portfolios :(

      If not, most would have quit long ago!

    2. On the flip side, the sad truth is there are also some who use their retail investing part-time job to patch the holes in their stagnant careers :( Hopefully, they don't end up digging more holes in both their day job and investing job. Accurate performance metrics will tell them when to quit, hopefully not too late.

      Even if a person's investment gains can consistently outperform his annual salary for past 5 years, I bet he is still financially better off if he works hard on his day job (assuming job has good prospects) and outsource his investment to passive funds/ETFs. By doing this, he will have 2 engines of wealth creation. If he quits his day job and goes full-time, he has only 1 engine. If he wants to do this, he had better love the investment game and craft to compensate for the higher likelihood of losing to the 2-engine scenario.

    3. hyom hyom,

      That's when invest/trade to escape or invest/trade to achieve becomes crystal ;)

      For those who seek to ESCAPE and know WHY they get up in the mornings, once they have enough, they would call it quits. Some even quit investing/trading!!!

      Its just a means remember? Once they have crossed the river, can let go of the sampan ;)

      For those who have enough but NO IDEA what they want to do once they woke up, then its just a matter of moving the goal posts...

      Again, and again, until they figure that out.

      They won't quit. But hey! At least they still have goals and plans to look forward to!

      Those who invest/trade to ACHIEVE, its a lot easier to spot. These craftsmen don't have FIRE goals to escape.

      They are looking to JOIN the industry as prop traders or investment managers. They will use their amateur track records to knock on doors until someone is willing to pay them to do what they love! Their goal is to turn PRO!

      Then they are those who love their day jobs or are coming down the mountain. They totally relish the intellectual stimulations from practicing the craft of investing/trading!

      Money is just a way of keeping score.

      They already have secured their money elsewhere ;)

    4. Good question from Temperament.

    5. temperament and CW,

      Ah! The biggest motivator of all human behaviours - and that includes everything and not just investing - is....

      Drum roll please!


      Don't pretend!


    6. temperament,

      Face palm. Scholar meets soldier...

      It's OK. I guess it flew over your head.

      Don't worry about it ;)

  5. temperament,

    You son of a gun you!

    "Capital injection" once and have son ;)


  6. temperament,

    No thanks!

    I want my women to be real; not blown-up kind.

    Intelligence optional; pretty can oredi!


  7. temperament,

    Not bad.

    At around 40, you got your first bucket of gold! And it has lasted you for 30 years till now!

    I'll say, that's some serious inheritance or you have married well!

    Not bad for ITE school leaver ;)

  8. temperament,

    Hee hee.

    We just talking "male-chicken" ;)

    Say say only!


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