Saturday, April 24, 2010

True Wealth?

Read this article and it does give me something to think about. 

Blessed day!

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A boat docked in a tiny Mexican fishing village.

A tourist complimented the local fishermen on the quality of their fish and asked how long it took him to catch them.

"Not very long." they answered in unison.

"Why didn't you stay out longer and catch more?"

The fishermen explained that their small catches were sufficient to meet their needs and those of their families.

"But what do you do with the rest of your time?"

"We sleep late, fish a little, play with our children, and take siestas with our wives. In the evenings, we go into the village to see our friends, have a few drinks, play the guitar, and sing a few songs. We have a full life."

The tourist interrupted, "I have an MBA from Harvard and I can help you! You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat."

"And after that?"

"With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers.

Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City , Los

Angeles , or even New York City !

From there you can direct your huge new enterprise."

"How long would that take?"

"Twenty, perhaps twenty-five years." replied the tourist.

"And after that?"

"Afterwards? Well my friend, that's when it gets really interesting, " answered the tourist, laughing. "When your business gets really big, you can start buying and selling stocks and make millions!"

"Millions? Really? And after that?" asked the fishermen..

"After that you'll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends."

"With all due respect sir, but that's exactly what we are doing now. So what's the point wasting twenty-five years?" asked the Mexicans.

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Friday, April 16, 2010

Work Less to Get More Done!

Countering what the title suggest, most of us would work more to get more done.  So how do we answer this question - 'Where do we get the best ideas from? ' 

Just read this article and I agree with it as I got some ideas while taking a break.  Those ideas generated some passive income.

Just note that we do still need to work :)

Blessed day !

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Thursday, April 1, 2010

Investment Strategy

Just got a GPS in preparation for the mother of all Malaysia road trips.  Fiddling with the GPS impresses on me the importance of a road map and this applies to every aspect of life (finance including). 

Hence the question pop up based on the current economic changes and with the STI hitting 2900,  has your investment strategy changed? 

John C. Bogle's mantra hasn't changed in 50 years: Diversify, take a long view and don't waver.  From this article,  his advice in short is : 
Invest consistently and for the long haul in a widely diversified portfolio of stocks and bonds. Pay attention to taxes and costs. But leave your investments alone.
Another interesting read is the discussion in Sgfunds on investment strategy. 

Have a blessed weekend and Thank God for this Friday.

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