Investing Is So Damn Tough You Are Right

To say that this has been a tough year for investment is an understatement.

Investing, as a general form of growing your wealth is so damn tough that for one not to be losing money is sometimes already seen as a form of success.

I can totally relate why many people avoided them like a plague because contrary to many popular beliefs, it can jolly well diminish your money.



Imagine yourself being invested in Asian Pay TV Trust at the start of the year, having intrigued by its stuttering share price and a high dividend payout.

You might have thought the dividends they pay out is unsustainable hence you made a decision to project them conservatively at the fcf you think they can give out.

When APTT announces their recent results, the management is even more conservative than you are and slashed their dividends like they did to slaughter a dying pig, causing its share price to fall by 50% in one day.

APTT might be a bad example because the more savvy investors could have been advocating investors to avoid them since their ipo days.

What about a stronger company like First Reit, which owns several hospitals in Indonesia and homes in Korea and has triple net lease master arrangements with a solid industry and sponsor background.

Imagine if you are someone who've just started out and would like to form a sustainable decent dividend paying reits and you come across First Reit as a company that has a great background history in terms of both operational and financial.

You got in at $1.20, thinking a 6.7% yield is decent enough for a hospital industry and then out of nowhere got whacked down by 20% in a week without having any clue or news to what was happening.

That is 3 years of dividend panadol that you need to wait before you even recoup back your capital.

Sounds like a ponzi scheme to many.

For those that turns to arguably one of the safest company in Singapore, Singtel did not fare any better.

Singtel earnings have been dragged down by weaker regional performance and their share price have been languishing low, back to where they are in the last 10 years.

You could argue that you receive a lot in terms of dividends over the past 10 years but that's mostly for consolation.

You know that is not good enough.

At the end of the day, you might just turn to the Singapore Savings Bond and decide to wait until the recession is here but I can tell you that by waiting your skills aren't polished enough to handle such situations when it comes.

You'd be just waiting and waiting and waiting.

Investing does not guarantee that you build up your wealth and I do not have an answer to one that can guarantee that you will.

The environment we face in the next 10 years should make it even harder to make money.

It is so damn tough you are right.


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146 comments
hy1106

Down the hill since January

Evilcrownofthorns

For me, has been a tough month rather than a tough year. Kenna whacked by mkt 9696.
Already working for free for 2 months liao.

minx99

Investing is actually quite easy, it's the human that make it tough..my kachang puteh contribution...

hardcore_dreamer

its a balance between "hope" and "greed"

牛不喝水强按头。。。

jacksonsim

I started off thinking I can be like Warren Buffett, went to buy lots of counters such as Singtel at $3.64. Sold my counters with 20% loss in my portfolio.

Decided to go for day/swing trade and managed to get back the losses plus profit. I think I’m not a investor kind of person. Market has been very choppy this year.

jacksonsim

Reply to @ThumbTackInvestor : Thanks for your feedback. Agree with you, short term trading though can be profitable but with a certain degree of risk involved. I will look into long term investment once the storm has calmed down.

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kc2024

Investing has never been easy. Almost impossible when focusing on short term. The reward is good if we reduce the risk and let the return compound.

Simpleinvestorsg

The longer I have been in the market, the less confident I feel as I'm aware of how much I don't know. That's the illusion of control dissipating. That's why its necessary to continue learning from others like yourself and use all mean to at least move in the right direction. I believe a firm focus on fundamentals and value will definitely be helpful.

ochartist

Reply to @Simpleinvestorsg : Kopisoh said chngkay is a very clever magician . . . he can paint a beautiful fundamental picture to tempt traders/investors to come in and buy so that he can laugh to the bank . . . Creative and Haw Par are 2 examples . . . firstly are their fundamental good? . . . secondly are they at a good price to buy?

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changyuesin

If it's tough in stock investing you have never experience the capitulation in crypto.. even more hard to bear

changyuesin

Reply to @lynlynnakamori : yes got in late 2016 made paper gain 10k USD now at a loss

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