Harness the Mental Habits
and Strategies that made
Warren Buffett and
the World’s Richest Investors…
The mental habits and strategies that Warren Buffett and George Soros both practice fly in the face of the conventional Wall Street “wisdom”:
Buffett and Soros don’t diversify. When they buy they always “buy as much as they can.”
Both will tell you that making predictions about the market or economy has virtually nothing to do with their success.
They’re not focused on the profits they expect to make. Indeed, they’re not investing for the money at all.
They don’t believe that to make big profits you must take big risks. Indeed, both are far more focused on not losing money than on making it.
Their beliefs about what makes markets tick are amazingly similar – and diametrically opposed to academic theories like the “Efficient Market Hypothesis” and the “Random Walk” which they both view with contempt.
And all those research reports that Wall Street churns out – they never read them. They don’t give a hoot what other people think.
Investment success lies in your mental habits and strategies, says Mark Tier in this path-breaking book. In identifying the winning investment habits that led Warren Buffett and George Soros to phenomenal success, Mark Tier has uncovered for the first time the habits that ALL successful investors share.
What’s more, every one of these winning habits is something you can easily learn yourself.
And it makes no difference whether you look for stock market bargains like Warren Buffett, trade currency futures like George Soros, invest in real estate, antiques or collectibles, use technical analysis, buy on dips or buy on breakouts, use a computerized trading system – or just want to salt money away safely for a rainy day. Adopt The Winning Investment Habits of Warren Buffett and George Soros and you too can make more money more easily than you ever thought possible.
One of the ‘secrets’ of the wealthy is long-term investments that pay compounded interest. Every savvy investor, when given a choice between a good investment with compound interest and a great investment with simple interest, will pick the good investment every time. They know that, over time, the investment that compounds will outperform the other.
Here’s an example. Let’s say you have three friends; Charlie, Kim, and Sally. Each one has money to invest. Charlie has $30,000. Kim and Sally each have $10,000 to invest. Charlie places his money into a 30-year investment which pays 12% simple interest annually. Kim and Sally also put their money into 30-year investment vehicles at 12% annual interest. However, theirs’ is compound interest, with Kim’s compounding yearly and Sally’s investment compounding quarterly.
After 30 years, here’s what their accounts would look like:
* The total value of Charlie’s investment has grown to $138,000 (principal and interest).
* The total value of Kim’s investment is $299,599.22.
* The total value of Sally’s account has become $347,109.87.
* Moreover, if Sally made $50 additional deposits every two weeks during the 30-year period, her balance would increase to $755,859.58!
As you can readily see, even though Charlie had three times as much money to invest initially, the compounding investments of Kim and Sally greatly outperformed his investment in the long run. But let’s hit a little closer to home.
Most of us don’t have a large sum to sink into an investment for thirty years. What would it be like if Sally only had $100 to invest, but she could continue to deposit an additional $100 into the account every month over the full thirty years? At a more real-worldly compounded rate of 8%, let’s see how she’d fare:
* After 30 years, Sally’s account would be worth $150,129.52, which still outperforms Charlie’s investment!
* If she deposited $25 weekly instead of $100 monthly (only $50 more per year), her balance after 30 years would be $165,034.94!
You get the picture. The point is that compounding interest works, and works well. If you’re not using it to maximize your money, then get to it. You don’t have to start with much; you simply have to be consistent. But you must start. Every day that you don’t have this powerful principle in your financial arsenal is money that you’re losing in the long run. Use the compound-interest calculator to play with the numbers yourself. It’s just like magic; so what are you waiting for?
TEN FUNDS OUTPERFORMED THE KLCI
|Table 1: Funds that have outperformed the KLCI|
|1||Kenanga Growth Fund||
|2||InterPac Dynamic Equity Fund||
|3||Prudential Small-Cap Fund||
|4||Kenanga Syariah Growth Fund||
|5||InterPac Dana Safi||
|6||Areca Equity Trust Fund||
|7||OSK-UOB Thematic Growth Fund||
|8||Prudential Growth Fund||
|9||Alliance Vision Fund||
|10||ASM Dana Mutiara||
|FTSE Bursa Malaysia KLCI||
|Unit trust performance is based on NAV with dividends reinvested
*Based on total returns, i.e. inclusive of dividends
Source: Bloomberg, iFAST
Sekadar untuk renungan bersama.
KLCI naik mendadak sejak Julai 2010, iaitu sebanyak 18%. Tapi untuk tahun ni, KLCI naik sehingga 4%, tapi sejak 6 hari lepas ia terus menjunam berturut-turut. Kesannya, kenaikan 4% tahun 2011 ni hilang dalam masa 6 hari sahaja. Naik slow, tapi bila turun beberapa hari sahaja. Kalau ada yg melabur dalam unit trust tu, buat la tindakan yg sepatutnya. Kalau yang loan asb pulak, steady ja la, tunggu dividen awal tahun.
Tak sabar untuk tunggu indeks KLCI hari ni. Kelmarin indeks ada tunjuk doji, tapi masih belum confirm lagi ada indicator reversal. Setakat ni, candle masih merah untuk 6 hari berturut-turut.
Lembaga Tabung Haji mengumumkan dividen untuk tahun 2010 ialah 5.5 peratus. Ianya 0.5 peratus lebih tinggi berbanding tahun 2009.
Ini satu lagi produk oleh Maybank, serupa dgn asb loan. Cuma yg ni untuk Amanah Hartanah Bumiputera. Satu lagi peluang melabur untuk bumiputera. Sesiapa yg dah penuh kouta loan asb, boleh tambah dgn skim ahb financing-i ni pulak. Saya pun cadang nak ambil, tapi kena study dulu baik buruk. Pengiraan awal, saya dapati pulangan sekitar 18%, untuk dividen 6% dan interest BLR(6.3%) – 1.65%. Tapi setakat ni, memang peluang ni yg terbaik. Download prospektus dulu dan baca teliti…selamat melabur…
The new Islamic financing facility for the purchase of Amanah Hartanah Bumiputera unit trust fund
AHB Financing-i provides financing for the purchase of Amanah Hartanah Bumiputera (AHB) unit trusts based on the Shariah principles of Bai’ ‘Inah (sale with immediate repurchase).
- Individuals age 18 years up to 59 years old
- Malaysian Residents
- Min financing amount : RM10,000
- Max financing amount : RM200,000
Margin of Financing
Up to 105%
- 100% of nominal value of unit trust
- 5% on GRTT (premium capitalization)
- Payment period of up to 25 years or up to the age of 60
- BFR – 1.65% (throughout financing tenure)
Selling Price Rate/Ceiling Rate fixed at
- BLR + 4.0% or 10%, whichever is higher
- Single installment only
Mode of Installment Payment
- Standing Instruction (SI)
AHB Income Distribution
- Income distribution (if any) will be made on a semi annual basis.
- AHB financial year ends September 30
• Application form
• Certified True Copy of Identity Card (both sides)
• Photocopy of latest 3 months’ pay slip (only for financing above RM50,000)
Hari ini saya berkongsi topik hobi iaitu tentang hobi bikin robot. Untuk buat robot ni tidaklah terlalu susah sebenarnya. Sekarang ni sudah ada kits yg boleh digunakan untuk berjinak-jinak dgn hobi ni. Antara kits robotik yang paling mudah setakat ni dikeluarkan oleh Lego. Versi terbaru dinamakan LEGO Mindstorms NXT 2.0.
Harga USD269 (sekitar RM810 tidak termasuk shipping). Boleh order dari Amazon.com
Kalau programmer tu, kits ni boleh juga diprogramkan menggunakan bahasa C.