He started investing more than 10 years ago but not much profit, because not much savings and wrong stock selection. Profit less than $1,000 from Sep 2000 to Sep 2006 (6 years).
The reasons were:
iv) not much confidence to invest more because results were not so good
The "Turning Point" was at a dinner in Shangri La hotel. Four of them. A remisier/ dealer, a banker, an investor, and himself. At that time, he dare not enter the market because prices have already gone up. He has also missed out on many stocks because the stocks didn't reach his buying price target. The banker shared with him about Dollar Cost Averaging. He took the advice/ challenge.
Since then, he started using Dollar Cost Averaging and started to see some good result. As he was thinking how to have better stock selection, he realized his stock selection was not good enough, because he concentrated too much on PE ratio. Then he started to change his strategy:
i)Continue with Dollar Cost Averaging
iv)Will buy the stock even if the price has gone up, as long as the value is still good.
As he could see the positive result, his confidence has grown and he has been investing consistently. He didn't take very high risk, but invested gradually into diversified stocks with his retirement money. He was able to achieve average of more than 20% return per year for the past few years, outperformed the local stock exchange index yearly. Based on his rough estimation, his has made $96,000 from Sep 2009 to May 2013 (3 years and 8 months). Plus the $4,000 that he has made, total is $100,000.
Besides congratulate him, I would also want to follow the way how he invest. If I have less money than him, I will make less than him. If I have more money than him, will make more than him. But all of us will be having a good % return. Be realistic, more important is the % that we make every year, how much we make is how much money we have.
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