2007 to 2009 double dips

Let me work on those numbers:

Oct 2007 - July 2008                 20% drop
July 2008 - March 9, 2009         45% drop

S & P 500 lost almost 60% of its value from Oct 2007 to March 2009

I did sell everything around March 2009, fifteen years lowest time. I just could not believe that I should learn how to invest from 2000 when I started to invest my 401 K and IRA. 

Double-dip recession, here is the article.

How to Prepare for a Recession?

Dec. 9, 2019

Introduction

It is so easy to understand the article called how to prepare for a recession. I like to gather more information about recession. I think that recession is most important time for me to build wealth and grow rich. Hopefully I can fully take advantage of the coming recession.

How to prepare for a recession?

Here is the article.

Owning bonds is a great way to hedge your risk from that volatility for the part of your portfolio you may need to sell in the next few years.

Facts to read first time

For instance, during the Great Recession, the S&P 500 first fell 20% from October 2007 to July 2008. But unlike the more recent bounce-back in 2018-2019, the market fell another 45% before finally reaching bottom on March 9, 2009. In all, the S&P 500 lost almost 60% of its value from October 2007 to March 2009.

Let me work on those numbers:

Oct 2007 - July 2008                 20% drop
July 2008 - March 9, 2009         45% drop

S & P 500 lost almost 60% of its value from Oct 2007 to March 2009

I did sell everything around March 2009, fifteen years lowest time. I just could not believe that I should learn how to invest from 2000 when I started to invest my 401 K and IRA. 

Review the statements

Keeping half of your market-crash money ready to deploy in a deeper market correction can serve two purposes. The first and most obvious is that it gives you the chance to take advantage of an even more deeply discounted stock market and enjoy bigger long-term gains when things inevitably improve. The second purpose may be even more important: It can help you manage your emotions and avoid falling into the trap of selling because you think you need to do something.

deeper market correction - what is deeper? 60% drop is deeper
deeply discounted stock market
bigger long-term gains 

It can help you manage your emotions and avoid falling into the trap of selling because you think you need to do something. 

the trap of selling - understand the trap of selling 

What are those two purposes? 

3 Stocks to Recession-Proof Your Portfolio

Dec. 2019

Introduction

I just started to work on personal finance research. I like to be a learner, in order to learn what stock to invest, I have to understand other people's ideas first. It may be a good idea for me to study one article a week related to stock analysis.

Facebook stock

Here is the article.

Facebook's Instagram Is Turning Into an E-Commerce Platform

Here is the article.

Facebook's Instagram Could Generate Nearly $9 Billion in Sales This Year

Here is the article.

Where Will Facebook Be in 10 Years?

Here is the article.

It's still the cheapest FANG stock

Wall Street expects Facebook to grow its earnings at an average rate of 22% over the next five years. Based on that forecast, we get a PEG ratio of 1.0. A PEG ratio below 1 indicates that a stock is undervalued, but that's rare for high-growth tech stocks. The three other "FANG" stocks have 5-year PEG ratios closer to 2. This means that if you believe that Facebook can generate at least 20% revenue and EPS growth over the next five years, it's actually the cheapest FANG stock.

Analysts don't offer 10-year estimates, but Facebook's growth momentum should continue as it follows its 10-year growth plan. Reports of Facebook's "death" have been greatly exaggerated, and it could climb much higher over the next ten years.

Amazon Is Becoming the Third Largest Internet Ad Platform in the U.S.

Here is the article.

CEO来了 蔚来李斌：身家百亿，却租房住、开二手车的“出行教父”

Here is the link.

蔚来裁员1200人！新能源汽车还有未来吗？

Here is the link.

就在今年上半年，杠杆游戏记得，蔚来已经历过一轮裁员。彼时其高层公开表态：一个雇员近万名的公司，需要不断优化内部组织效率。今年蔚来进行了局部减员，预计到今年6月末，雇员数量将在今年2月底的基础上减少3%。

公开数据显示，8月初，蔚来员工总数为8800多人，相比蔚来员工数最高时的9800人，已经减员1000人。

如果说上一轮裁员是末尾淘汰，那么这一轮裁员呢？对了，好像是人员优化。

股价不会撒谎。

在2018年蔚来上市之前，其公开渠道的融资至少也有24亿美元（人民币约165亿元）。而上市又是18亿美元。

《遇见大咖》 蔚来汽车创始人李斌特辑（上）：3年默默造车终亮相 打破“PPT造车”质疑 20181027 | CCTV财经

Here is the link.

13325 102A AVENUE, Surrey, British Columbia V3T0J5

Dec. 8, 2019

Introduction

I spent time to visit open house, and this is a nice unit in a five year old building. I was so surprised to learn that the condo is such a good investment, I did not have chance to look into more than five years ago.

The first floor

I visited first floor. There is a gym, community room and meeting room.

13325 102A AVENUE 805, Surrey, British Columbia V3T0J5

Asking price: $259,000 

Actionable Items

I need to spend some gas money to look into real estate market in the city of Surrey. I need to learn the basics. Through the conversation with real estate agent, a Chinese, he said that if a person working as a software engineer making $100,000 dollars, you only make 40%, how can you afford the place to live? I cannot get the loan. 

This brings up the serious topic that I need to think about and how to evaluate the business. 

The owner is a Chinese, and BC assessment only show last three year's history. This is not a correct way to do business. 

Case study: My Canada retirement calculation

Dec. 8, 2019

Introduction

It is so challenge for me to figure out how to make a living in Canada, if I am retired. I need to prepare my knowledge on this area.

Case study

CPP 

I like to talk about CPP.
highest amount is $1012 every month. Earliest time is 60 years old. I am 53 years old right now, so I can apply 7 years later, in 2026.

Average CPP is $528.00 dollars
CPP is for all of us, the main goal is to help low incomer to have life guarantee.

I already work almost 10 years. I need to figure out what is the amount I can get.

OAS

Old age security
If I live in Canada 10 years, then I should be able to get the benefit when I turn 65 years old.

After 18, count how many years, each year will count 1/ 40. I will have at least 10 years to live in Canada.

GIS - Guaranteed income supplement

If the annual income is more than $21887 ( household), or personal income is higher than $16559, live more than 10 years.

No tax requirement.

2013 Maximum $740/ month

Case study:

Fact:

2013 highest OAS is $546.07/ month, GIS single highest is $740.44/ month
One Chinese couple came to Canada over 20 years, live with daughter. every month husband and wife each can get over $1000 dollars.

GIS highest one - $740.44, the wife or husband will be $490.96

Actionable Items

How much can I get?
I will  have three possible income, one is CPP, one is OAS, one is GIS. So I should have at least 25% maximum OAS.

Life is tough. I still do not know where I will live in Canada. Vancouver area is too expensive. I am thinking about having a business to get some income as well.

Top 10 Leadership Books to Read

Here is the link.

1. I love Capitalism 2. Tribal Leadership 3. Crucial Accountability 4. The leadership Secrets of Billy Graham 5. The One Thing 6. The 15 invaluable laws of growth 7. David and Goliath 8. Handling difficult People 9. The Five Temptations of CEO 10. Ego is the Enemy

美团网CEO王兴:团购网怎样做才可以赢

Here is the link.

他有典型的三好学生式经历：被保送上清华大学，毕业后获得奖学金前往美国读书。他 带着明确的创业计划从美国回国创业。创办了人人网、饭否网等知名网站。他最新的创业项 目则是美团网，一经上线，即引起广泛关注。本期节目王兴与您一同分享团购网怎样做才可 以赢。 2007年11月16日，王兴创办的社交网站海内网上线。这也是王兴继校内网和饭否网之后创办的第三个社交网站。 海内是一个真人网络，提供个人空间，迷你博客，相册，群组，电台，校友录，买卖好友以及电影评论等服务。[1] 王兴还表示，与校内网相比，海内网面向的用户更高端一些。校内网只针对大学生用户，两家网站的用户重叠率并不高，两者不存在竞争关系。王兴，人人网（原校内网）创始人，饭否网总裁,美团网创始人兼CEO。 1997年王兴被保送到清华大学电子工程系无线电专业，毕业后拿到全额奖学金去了美国特拉华大学师从第一位获得MIT计算机科学博士学位的大陆学者高光荣。

Principles For Success by Ray Dalio (In 30 Minutes)

Here is the link.

How to Double Your Income

Here is the link.

Recreate = new results
stay the same = old results
Peer pressure

Death, Entertainment, Divorce,
Compressed time frame

How to Increase Your Net Worth

Here is the link.

Four brackets of net worth:
Money, health, skill, influence and voice

Four areas of net worth
Credit, savings, income, investments

Influence - Email, Facebook, Instagram, Twitter, Youtube
Health - Body fat, stamina

Income - Active, Passive

Write it
Track it
Put a goal
Drive IT

How to Make a Million Dollars a Year

Here is the link.


500,000 makes a million dollar income in 2018.

Logic/ emotion

7 Types of Equity to Help You Make Millions

Here is the link.

1.) Money Equity 2.) Sweat Equity 3.) Social Equity 4.) Language/Culture Equity 5.) Contacts/Connection Equity 6.) Specialised Skills Equity 7.) Intellectual Property Equity

10 Signs You Won't Be Rich

Here is the link.

1) You don´t like rich people 2) You think rich people are special 3) You don´t spend enough time learning 4) People make you easily feel guilty 5) You worry too much about what people think about you 6) You worry too little about what the right people think about you 8) You listen to every single thing your parents tell you to do 9) You´re an expert at making excuses 10) Your attitude sucks

7 Signs You Are Going to Be Successful

Here is the link.

1] Super Competitive 2] Finish Everything 3] Circle Outearns You 4] Mind Never Stops 5] Credible People See Them Going Places 6] Always Learning 7] Extremely Obsessive

10 Things To Do Before Becoming An Entrepreneur

Here is the link.

15:12/ 16:20

1. Learn to self-motivate
2. Save, save, save
3. Learn how to sell
4. Work for an entrepreneur
5. Network, build contacts, relationships
6. Work 80hours/ WK for 12-24 months
7. Research & Learn fast
8. Build an audience
9. Learn your strengths in different industries
10. Death ground/ back against the wall

12 Mistakes I Made My First Year as an Entrepreneur

Here is the link.

1. Almost quit 2. Become CEO too quickly 3. Taking advice from too many people 4. Not knowing how to ask for advice 5. Forcing v. Influencing 6. Living the life too early 7. Selling too many products 8. Thinking that I knew it all 9. Partying too hard 10. Acting like a boss, not an employee 11. Not having a schedule 12. Not having a business plan

16 Time Wasters of Entrepreneurs

Here is the link.

1. Doing $10/hour jobs 2. Blame 3. Worrying about going out of business 4. Constantly think about what competitors are doing 5. Turn off notifications 6. Constantly hiring new people for new positions because you don't pay well 7. Thinking about people who left you 8. Non-effictive social media use : Newsfeed on facebook 9. Wasting time with office butterflies 10. Too many meetings 11. TV 12.Taking calls from friends during business hours 13. Chasing the big account that you think will change your life instead of the small sales 14. Reading the wrong books 15. Too much partying

Think Like A Grand Master Entrepreneur- 2019 Driven Keynote

Here is the link.

Fat kids in USA -> Parks close down -> lawyer sit in the park -> kids get hurt -> sue the city -> share the profit

Where most people struggle
1. lens
2. language

Treat people like customers. How to serve them?
Do not try to sell things to them.

Morale of story - change lens, change language.
What is your purpose?

Actors vs. Doers

half million - million - 1% -> look up internet
$100,000 dollar/ year - 80%

1% or 20%, hunger for next level

11 Skills that Millionaires Master

Here is the link.

the 11 skill sets that millionaires master. #1: Persuasion - 4:00 #2: - Reading People -- 6:00 #3: Sharing the Wealth - 8:04 #4: Leverage - 11:03 #5: Recruiting - 12:57 #6: Energy Management - 14:15 #7: How to Process Issues 16:07 #8: Time Management - 17:10 #9: How to Manage Money - 19:37 #10: How to Be Aggressively Patient -- 21:26 #11: Learning - 24:12

How to REALLY Become A Millionaire

Here is the link.


How to be a millionaire?


20 hours
40 hours
All the timer - 80 hours

Work ethnics side - 80 hours, prior to that
Every one has a week to brag about.

Personal growth speed
Rat race - identity is not growing - ability to scale

Level 1 - average 20 books a month
Level 2 - average 40 books a month

business book  - learn how to figure out things

Work ethnics

How many stops you run?

7 Psychological Effects That Rule Your Whole Life

Here is the link of a million view video.

Did you know you could sell a $20 bill for ten times its value? Or that a person you’re physically attracted to may not be as smart and funny as you think? Or that the only reason why there’s this third option on the market is to create the decoy? All these things are called cognitive biases, and they rule your entire life without you even knowing it. Here are some of the most prominent ones.


TIMESTAMPS: Phenomenon of Max Bazerman 0:25 Decoy effect 2:23 Halo effect 4:00 Framing effect 5:00 Illusion of control 6:05 Dr. Fox effect 7:45 Spotlight effect 9:17

SUMMARY: - How hard could it be to take 20 bucks from an MBA student? In fact, Professor Max Bazerman proves it’s easy-peasy. In 2010, he first conducted an experiment at his class where he organized a simple auction: he would give a $20 bill to the student who pays the most money for it. The $20 bill was sold for $204. - The only reason why there’s this third option on the market is to create this decoy to make you buy a more expensive product. - You may not notice this, but when you see an attractive person, you tend to exaggerate their good traits of character. And that’s the gist of the halo effect. - We tend to prefer an option that is described in a positive way. Even if the only other option is absolutely the same, people will likely disregard it because it’s been given a negative description. - Although a situation can be completely random, people tend to think their choice somehow affects the results. We like to be in control of everything, don’t we? - The positive attitude and liveliness of a person can completely fool a whole audience of highly educated specialists. If you ever heard motivational speakers and got inspired by their ideas… well, chances are that you’ve also experienced the Dr. Fox effect. - If you’ve ever felt self-conscious leaving your house in different socks, worrying that everyone would laugh and point fingers at you, you’ve become a victim of the spotlight effect. It’s a psychological bias that basically makes you think too much of yourself.

Fretting about Modest Risks is a Mistake

Here is the link.

Managers often engage in risk-averse behavior, and economists, decision analysts, and managers treat risk aversion as a preference. In many cases, acting in a risk-averse manner is a mistake, but managers can correct this mistake with greater reflection. This article provides guidance on how individuals and organizations can move toward greater reflection and a more profitable aggregate portfolio of decisions. Inconsistency in risk preferences across decisions is a costly mistake for both individuals and for organizations. Based on the article "Fretting about Modest Risks is a Mistake" by Matthew Rabin and Max Bazerman.

Behavior Change For Good: Max Bazerman

Here is the link.

Harvard University Professor of Business Max Bazerman presents at CEHD's Behavior

Pay Attention to Bad Vibes, with Max Bazerman

Here is the link.

6種常見的認知偏誤，學會讓你變得更聰明！ 精準決策 | 動畫說書

Here is the link.

Book

Judgment in Managerial Decision Making

by Max H. Bazerman, Don A. Moore

Summary: 1.過度自信 Overconfidence Bias 2.後見之明偏誤 Hindsight Bias 3.錨定偏誤 Anchoring Bias 4.確認偏誤 Confirmation Bias 5.可得性偏誤 Availability Bias 6.承諾升級 Escalation of Commitment

1.過度自信 Overconfidence Bias（過去的成果經驗越多, 我們就越容易在決策時忽略其他重要信息, underestimate opponents or overestimate ourselves ） 2.後見之明偏誤 Hindsight Bias（事後諸葛亮，但對事情毫無貢獻） 3.錨定偏誤 Anchoring Bias（太過於依賴單方面的信息而忽略了整體面的考慮因素,bigger screen on tablets but not on phone） 4.確認偏誤 Confirmation Bias (只使用對自己有利的信息，而忽略了對自己不利或者矛盾的信息，saturated market) 5.可得性偏誤 Availability Bias(通過事件在記憶中的可得程度，來評估事件的頻率，會助長過度自信） 6.承諾升級 Escalation of Commitment（面對前期投入的消極後果，仍堅持向某一項目投入資源，這是沉没成本，不要受困于浪费心态，昨天的无法挽回，但我们可以从昨天的错误中学习）

有錢人的大陰謀：8個新時代的金錢法則 | 富人致富的秘密

Here is the link.

1. Knowledge is power. Know more about tool.
2. With knowledge what to borrow
3. Accelerating acceleration - speed demand
4. Control cash flow - not capital gain
5. 2008 financial crisis - it is time to allocate asset when bear market comes
6. How to learn financial literacy
7. Life is a team sport. Please be careful to select your team members.
8. Learn how to invest and have passive income.

Tools that can bring you income consistently passive income - positive rental income - stock dividend income

Learn the jargon in money tools.

1. Businesses
2. Real estate
3. Paper assets
4. Commodities

脫離貧窮的五個黃金規則 和月光族說拜拜

Here is the link.

“诺亚并不是在已经下大雨的时候，才开始建造方舟的。” 巴菲特 「人生就像滾雪球，你只要找到濕的雪，和很長的坡道，雪球就會越滾越大。」 – 巴菲特 Life is like a snowball. The important thing is finding wet snow and a really long hill. – Buffett

极简方面： 我是極簡主義者 從購物狂到今天的極簡主義一步一步走來的個人心得和經驗和你分享,用減法過日子，原來可以讓自己活得更自由更開心,世界知名人士賈伯斯、泰瑞莎修女也都是極簡主義奉行者,丟光所有傢俱,只保留你喜歡的物品。 随着你从生活中拿掉的东西越来越多，保留的越来越少，你会越来越清楚什么才是你真正在乎的。我看的書籍有 近藤麻理惠老师的（怦然心动的人生整理魔法）,（极简生活）, 山下应子老师的（断舍离）,极简，（极简主义），（极简力），（囤积欲），（我的家里空无一物）“只保留你喜欢的物品，其它的都没有意义。”丢掉无用或很少用的东西，只留下绝对必需的物品。当你犹豫一件东西要不要扔掉的时候，其实就是，你并不需要它！ 極簡主義者不代表身邊什麼東西都沒有，也不能從物品的數量來推斷他是不是極簡主義者。来体会一下极简主义生活都会是一个有趣的经历。物质的极简and心灵的极简，这两是相互作用，相互存在，相互成全的。在饮食方面简化，比如开始减少外食和调味料的摄入，烹饪方式更加接近食物本来的味道，更多的吃蔬果而不是充满人工添加剂的加工食品。比如，减少无意义的社交活动，和更契合的人交往。比如，换工作，和并不合适的恋人分手甚至离开带来负能量的婚姻，有生以来第一次摒弃杂音听从内心的声音.

Stop acting rich

Here is the book I like to learn more.

SUMMARY

With well over two million of his books sold, and huge praise from many media outlets, Dr. Thomas J. Stanley is a recognized and highly respected authority on how the wealthy act and think. Now, in Stop Acting Rich ? and Start Living Like a Millionaire, he details how the less affluent have fallen into the elite luxury brand trap that keeps them from acquiring wealth and details how to get out of it by emulating the working rich as opposed to the super elite.

• Puts wealth in perspective and shows you how to live rich without spending more
• Details why we spend lavishly and how to stop this destructive cycle
• Discusses how being “rich” means more than just big houses and luxury cars

A defensive strategy for tough times, Stop Acting Rich shows readers how to live a rich, happy life through accumulating more wealth and using it to achieve the type of financial freedom that will create true happiness and fulfillment.

讀書會: 別在扮演有錢人了 馬上像真正的百萬富翁一樣生活

Here is the link. I like to learn more about the book.

Thomas J. Stanley, Ph.D.
Stop acting like millionaire

3個常見的金錢迷思 | 就是艾理財#1

Here is the link.

The big advantage of the TD-e series

The big advantage of the TD-e series that is not immediately apparent is that you can automate contributions to your rrsp or tfsa when you work. This removes a lot of second guessing or temptation to time the market. 

Go to your Investments area and select Pre-authorized Purchase plan, then set it say to $100 bi-monthly. Then forget it exists, and you have no stress when the markets go up or down. 

If you get to a higher amount and stop working and the automatic contribution, then you probably want to move the money to their ETF equivalent with a lower fee of say 0.08% instead of 0.35%. 

I found the automation is a big convenience and it’s dollar cost averaging at its best. Unless Questrade offers it at no cost.

Actionable Items

I am having monthly deposit $120 dollars for Scotia Canada index fund. $100 dollar monthly for Scotia US 500 index fund. 

Do not time the market

Dec. 7, 2019

Introduction

It is such painful experience for me to review my personal finance. I sold everything in stock market in 2009, and then leave my 401 K and IRA CD from 2009 to May 2019. I just could not believe the pain and sufferings I experienced when I reviewed those financial records in early year of 2019. 

Below average as an investor

I just could not believe that I was below the average as an investor. I was busy with church, full time work in Canada, weight-control, vacation, hiking, my health and my rental property management. 

Reading 

I spent time to read the article called Reader case: when to time the market. I just copy and paste some sentences here. 

"That’s what I always recommend. Don’t try to time the market. At best, you’ll stress yourself silly trying to hit the optimal inflection point. And at worst, you’ll get paralyzed and leave it all in your checking account forever, like AA seemingly has."

READER CASE: SHOULD I ENTER THE MARKET?

Here is the article.

WOULD WE BE RICHER IF WE HAD BOUGHT A HOUSE?

Here is the article.

I spent over one hour to read comment. I think that the article is so well-written, and the traffic on the blog is such a great place for me to read.

I like to write down things I learn in the following:

1. Coach potato - learn how to invest using ETF.
2. Capital gain tax on stock -
3. Life style check - as a home owner, what should be checked into?
4. Inflation discussion - 2% - 4%
5. Cost to purchase and sell, discount broker, Toronto area property price