Here is the article.
Tuesday, January 21, 2020
J. P Morgan 2020
January 21, 2020
I like to look into more about this Chinese version J. P. Morgan 2020. I like to write a small case study about the report.
Introduction
I like to look into more about this Chinese version J. P. Morgan 2020. I like to write a small case study about the report.
2019 12 month review
MSCI index
Monday, January 20, 2020
How to Dive for Swimming
Here is the link.
Recap
Recap
- Use grab or track start
- Both feet forward
- One foot forward
- Wrap toes around edge
- Hips high, look down
- On beep, learn forward
- Hands in streamline
- Point hands to flags
How To Dive For Swimming | A Step By Step Guide
January 20, 2020
Today I went to swimming indoor pool, a swimmer likes to dive, and he also showed me how kids learn how to dive. So I wore life jacket and learned to dive a few times.
I like to learn how to dive, here is the video.
Introduction
Today I went to swimming indoor pool, a swimmer likes to dive, and he also showed me how kids learn how to dive. So I wore life jacket and learned to dive a few times.
How to dive?
I like to learn how to dive, here is the video.
Sunday, January 19, 2020
Bill Ackman: Pershing Square, hedge funds & learning from your mistakes
Here is one hour interview I like to watch.
"How you deal with adversity that determines your ultimate success, as opposed to how you deal with success determines your ultimate success"
"How you deal with adversity that determines your ultimate success, as opposed to how you deal with success determines your ultimate success"
The Mindset of a BILLIONAIRE INVESTOR | How Bill Ackman Makes His MONEY
Here is the link.
Bill Ackman's 10 rules for success
Bill Ackman's 10 rules for success
- Overcome adversity
- Study success
- Invest well
- Be director
- Be confident
- Contribute
- Deal with criticism
- Learn your craft
- Don't follow the herd
- Give opportunities
Bruce Berkowitz - Executive in Residence - 11/8/2012
Here is the video I like to spend 40 minutes to watch.
Bruce R. Berkowitz - Wikipedia
Here is the article.
Here is the article I found his net worth.
Here is the article I found his net worth.
22. Bruce R. Berkowitz
Where he lives: Miami (seasonal).
Net worth: $500 million.
Source: Fairholme Capital Management, LLC.
How he made his money: Investment management.
The story: Bruce R. Berkowitz, 56, is the founder, managing member and chief investment officer of Fairholme Capital Management. He has a concentrated equity investment style, making big bets on relatively few stocks that most investors avoid. Purchases of stock in Bank of America and American International Group, or AIG, in 2011 helped to produce handsome 2013 returns on investment in his $8.8 billion-asset Fairholme Fund, according to trade publication Institutional Investor.
Berkowitz, a Miami resident since 2006, said in an email exchange that “Miami has all the resources we need, plus we get to live and work in a beautiful environment. Our tag line is ‘Ignore the Crowd,’ and our location here helps us maintain our distance and independence from the chatter of Wall Street.”
Berkowitz earned a bachelor of arts degree in economics from the University of Massachusetts in 1980. He is chairman of the board of the St. Joe Company, a publicly held Florida-based real estate developer. r of the Decade” in 2010.
Berkowitz said in an email that he advises people getting into business that any industry they find appealing has promise.
“It doesn’t matter what you do, if you really like it,” he said. “To be successful requires huge effort. Twenty-four/seven for decades is the definition of instant success. So you’ve got to love what you do, and if you don’t, try something else.”
Mark Sellers, Intelligent Investor
Here is the article.
What I like to do is to train myself, and understand better about Mark Sellers, and how a hedge fund manager thinks. I learn something from Mark Sellers's talk to Harvard MBAs.
What I like to do is to train myself, and understand better about Mark Sellers, and how a hedge fund manager thinks. I learn something from Mark Sellers's talk to Harvard MBAs.
People don't like short term pain even if it would result in better long-term results
January 19, 2020
Introduction
It is such a good statement, I cannot believe that I am the person and I did the silly thing. The statement is the following: People don't like short term pain even if it would result in better long-term results. The topic is about "The ability to live through volatility without changing your investment thought process".
I need to look into two concepts and their comparison. One is to equate short-term volatility with risk.
Introduction
It is such a good statement, I cannot believe that I am the person and I did the silly thing. The statement is the following: People don't like short term pain even if it would result in better long-term results. The topic is about "The ability to live through volatility without changing your investment thought process".
Volatility
They equate short-term volatility with risk. This is irrational; risk means that if you are wrong about a bet you make, you lose money. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss.
But most people just can't see it that way; their brains won't let them. Their panic instinct steps in and shuts down the normal brain function.
I would argue that none of these traits can be learned once a person reaches adulthood. By that time, your potential to be an outstanding investor later in life has already been determined.
It can be honed, but not developed from scratch because it mostly has to do with the way your brain is wired and experiences you have as a child. That doesn't mean financial education and reading and investing experience aren't important.
Those are critical just to get into the game and keep playing. But those things can be copied by anyone.
Actionable Items
I need to look into two concepts and their comparison. One is to equate short-term volatility with risk.
Most important, I believe you need to be a good writer - Mark Sellers
Here is the article.
Look at Buffett; he's one of the best writers ever in the business world. It's not a coincidence that he's also one of the best investors of all time. If you can't write clearly, it is my opinion that you don't think very clearly. And if you don't think clearly, you're in trouble. There are a lot of people who have genius IQs who can't think clearly, though they can figure out bond or option pricing in their heads.
Look at Buffett; he's one of the best writers ever in the business world. It's not a coincidence that he's also one of the best investors of all time. If you can't write clearly, it is my opinion that you don't think very clearly. And if you don't think clearly, you're in trouble. There are a lot of people who have genius IQs who can't think clearly, though they can figure out bond or option pricing in their heads.
In business school, I met a lot of people who were incredibly smart. But those who were majoring in finance couldn't write worth a damn and had a hard time coming up with inventive ways to look at a problem. I was a little shocked at this.
I later learned that some really smart people have only one side of their brains working, and that is enough to do very well in the world but not enough to be an entrepreneurial investor who thinks differently from the masses.
On the other hand, if the right side of your brain is dominant, you probably loathe math and therefore you don't often find these people in the world of finance to begin with. So finance people tend to be very left-brain oriented and I think that's a problem. I believe a great investor needs to have both sides turned on.
As an investor, you need to perform calculations and have a logical investment thesis. This is your left brain working.
But you also need to be able to do things such as judging a management team from subtle cues they give off. You need to be able to step back and take a big picture view of certain situations rather than analyzing them to death. You need to have a sense of humor and humility and common sense. And most important, I believe you need to be a good writer.
Kelly criterion
Here is the wiki article. I like to spend 10 to 15 minutes to study the concept.
For an even money bet, the Kelly criterion computes the wager size percentage by multiplying the percent chance to win by two, then subtracting one. So, for a bet with a 70% chance to win (or .7 probability), doubling .7 equals 1.4, from which you subtract 1, leaving .4 as your optimal wager size—40% of available funds.
For an even money bet, the Kelly criterion computes the wager size percentage by multiplying the percent chance to win by two, then subtracting one. So, for a bet with a 70% chance to win (or .7 probability), doubling .7 equals 1.4, from which you subtract 1, leaving .4 as your optimal wager size—40% of available funds.
Seven traits of a great investor - Mark Seller
January 19, 2020
It is so challenge to learn something in weekends about investment. I came cross this article and like to take notes here.
Introduction
It is so challenge to learn something in weekends about investment. I came cross this article and like to take notes here.
Seven traits
An MBA is the best way to learn how to exactly, precisely, equal the market return
January 19, 2020
Introduction
It is a good idea to look into Harvard business school and what graduate learns from the school.
Introduction
It is a good idea to look into Harvard business school and what graduate learns from the school.
股票投資理念研究之：在思維模式上，富人和窮人最大的不同是什麼？
Here is the link.
為什麼窮人很難實現財務自由（財富自由）？ 資本主義這個遊戲的規則是什麼？ 為什麼很多人做投資都會急功近利？ 股神巴菲特說的賺錢秘訣到底是什麼？ 這個視頻主要是介紹一些自己個人對這些問題的看法，希望對各位的股票投資（美股，港股和A股等）有一些幫助。
Delay gratification. Look for long term return.
穷人因为资金有限、知识和技能有限、人际关系极其有限，能接触的人也是相近层次，才会作出短视的行为，例如，买彩票、赌马、买仙股等等，因果关系是：因为家穷不能好好读书然后只能做低价劳动力，收入极其有限才有短视行为。
Active income and passive income. How to make passive income?
為什麼窮人很難實現財務自由（財富自由）？ 資本主義這個遊戲的規則是什麼？ 為什麼很多人做投資都會急功近利？ 股神巴菲特說的賺錢秘訣到底是什麼？ 這個視頻主要是介紹一些自己個人對這些問題的看法，希望對各位的股票投資（美股，港股和A股等）有一些幫助。
Delay gratification. Look for long term return.
穷人因为资金有限、知识和技能有限、人际关系极其有限，能接触的人也是相近层次，才会作出短视的行为，例如，买彩票、赌马、买仙股等等，因果关系是：因为家穷不能好好读书然后只能做低价劳动力，收入极其有限才有短视行为。
Active income and passive income. How to make passive income?
美股投資研究之： 一個股票如果已經漲了幾十倍，那就一定很貴么？還可以買么？
Here is the link.
本視頻主要介紹了一些常用的給股票估值（美股，港股，A股都適用）的方法： 1. PE（市盈率，本益比） 從4分24秒開始 2. 股圣彼得林奇最愛用的PEG 從9分47秒開始 3. PB（市淨率） 從12分14秒開始 4. 股神巴菲特最愛的ROE（淨資產收益率） 從14分48秒開始 5. PS（市銷率） 從19分15秒開始
本視頻主要介紹了一些常用的給股票估值（美股，港股，A股都適用）的方法： 1. PE（市盈率，本益比） 從4分24秒開始 2. 股圣彼得林奇最愛用的PEG 從9分47秒開始 3. PB（市淨率） 從12分14秒開始 4. 股神巴菲特最愛的ROE（淨資產收益率） 從14分48秒開始 5. PS（市銷率） 從19分15秒開始
Hedge Fund Manager Mark Sellers on Becoming a Great Investor
Here is the article.
On the bright side, although most of you will not be able to compound money at 20% for your entire career, a lot of you will turn out to be good, above average investors because you are a skewed sample, the Harvard MBAs. A person can learn to be an above-average investor. You can learn to do well enough, if you're smart and hardworking and educated, to keep a good, high-paying job in the investment business for your entire career.
You can make millions without being a great investor. You can learn to outperform the averages by a couple points a year through hard work and an above average IQ and a lot of study. So there is no reason to be discouraged by what I'm saying today. You can have a really successful, lucrative career even if you're not the next Warren Buffett (Trades, Portfolio).
美股研究之：到底什么样的人才能成为股市里的大赢家
Here is the link.
視頻內容：对冲基金Sellers Capital的创始人马克 · 赛勒尔在哈佛大学做了一场著名的演讲，题目是：你不能成为伟大投资者的七个命门。 希望這個視頻對各位的股票投資（美股和港股）有一些幫助。
視頻內容：对冲基金Sellers Capital的创始人马克 · 赛勒尔在哈佛大学做了一场著名的演讲，题目是：你不能成为伟大投资者的七个命门。 希望這個視頻對各位的股票投資（美股和港股）有一些幫助。
The art of readable code - book review
January 19, 2020
It is so hard for me to find my writing back in 2014. I did not write so often and I am lucky to find my writing on my Linkedin.com.
The following is written by me back in 2014.
Two month fan of the book - The art of readable code, from August - Oct. 2014; and then, started to practice code review, change the code to make it readable. Big fan of DRY (Do not repeat yourself) principle, do one thing a time, break giant expression, using explaining variable or summary variable, and abstract the thing to a function, extract a subproblem to a function. Training with great mind, like tennis sport, is a good practice. The book is coach's book with guidelines. Follow closely, in this 2014.
http://shop.oreilly.com/product/9780596802301.do
Introduction
It is so hard for me to find my writing back in 2014. I did not write so often and I am lucky to find my writing on my Linkedin.com.
The book recommendation
The following is written by me back in 2014.
Code review, rewrite
Jul 2014
http://shop.oreilly.com/product/9780596802301.do
Saturday, January 18, 2020
33956 ESSENDENE AVENUE, Abbotsford, British Columbia V2S2H8
asking price:
$209,900 CAD
- Property Type
- Condo
- MLS® Number
- R2420420
- Year Built
- 1979
- Date Added
- 19 November 2019
- Stories
- 1
- Basement
- None
- Neighborhood
- Old Abbotsford
- Postal Code
- V2S2H8
Description for 33956 ESSENDENE AVENUE
Top 10 most common financial mistakes
Here is the article.
- Excessive/ Frivolous spending
- Never-ending payments
- Living on borrowed money
- Buying a new car
- Spending too much on your house
- Using home equity like a piggy bank
- Living paycheck to paycheck
- Not investing
- Paying off debt with savings
- Not having a plan
Case study: reverse a linked list, and then reverse a linked list in group
January 18, 2020
Introduction
It is my 9:00 AM mock interview as an interviewee. I like to write a case study how to work on the algorithm called reverse a linked list.
Case study
I wrote the first algorithm reverse a linked list using recursive function, and also explained the idea how to solve it using iterative way.
Next I worked on the algorithm called reverse a linked list in group K.
Interviewer's feedback
Interviewee's feedback
I wrote the feedback in the following.
I also made sure that I gave some feedback to interviewer as well.
Above top 50%
Second interview to advance to next round
Introduction
It is my 9:00 AM mock interview as an interviewee. I like to write a case study how to work on the algorithm called reverse a linked list.
Case study
I wrote the first algorithm reverse a linked list using recursive function, and also explained the idea how to solve it using iterative way.
Next I worked on the algorithm called reverse a linked list in group K.
Interviewer's feedback
Interviewee's feedback
I wrote the feedback in the following.
I also made sure that I gave some feedback to interviewer as well.
Above top 50%
Second interview to advance to next round
25. Reverse Nodes in k-Group
January 18, 2020
Introduction
I had a mock interview as an interviewee this morning 9:00 AM on Jan. 18, 2020, I was asked to solve the algorithm to reverse a linked list first, I solved using recursive solution, and shared the idea how to solve iterative way; next I was asked to work on reverse a linked list in group.
Case study
I like to work on a test case 1->2->3->4, k = 2, so that I have to work on the algorithm to reverse a linked list, and also I have to make sure that first group 1->2's first node will be connected to next group 3->4's last node which should be the head of reversed linked list.
How to work on it efficiently? I will add more detail later.
C# My first practice in August 2015
Here is the link.
Jan. 18, 2020
I had a mock interview as an interviewee this morning, I was asked to solve the algorithm to reverse a linked list first, I solved using recursive solution, and shared the idea how to solve iterative way; next I was asked to work on reverse a linked list in group.
Case study
I like to work on a test case 1->2->3->4, k = 2, so that I have to work on the algorithm to reverse a linked list, and also I have to make sure that first group 1->2's first node will be connected to next group 3->4's last node which should be the head of reversed linked list.
How to work on it efficiently? I will add more detail later.
My practice in August 2015
I found the solution I wrote in August 2015.
/**
* Definition for singly-linked list.
* public class ListNode {
* public int val;
* public ListNode next;
* public ListNode(int x) { val = x; }
* }
*/
public class Solution {
public ListNode ReverseKGroup(ListNode head, int k) {
if (head == null)
{
return null;
}
ListNode dummy = new ListNode(0);
dummy.next = head;
int count = 0;
ListNode pre = dummy;
ListNode cur = head;
while (cur != null)
{
count++;
ListNode next = cur.next;
if (count == k)
{
pre = reverse(pre, next);
count = 0;
}
cur = next;
}
return dummy.next;
}
private ListNode reverse(ListNode pre, ListNode end)
{
if (pre == null || pre.next == null)
return pre;
ListNode head = pre.next;
ListNode cur = pre.next.next;
while (cur != end)
{
ListNode next = cur.next;
cur.next = pre.next;
pre.next = cur;
cur = next;
}
head.next = end;
return head;
}
}Friday, January 17, 2020
2020 - Google, Facebook, Amazon, Alphabet, Apple market value
January 17, 2020
Introduction
Here is the article.
2020年1月16日，在美股收盘后，Google母公司Alphabet（GOOG.US)股价报收在1451.70美元，比前一天增长了0.87%;由此，Alphabet市值突破万亿美元的大关，达到10012亿美元——凭借这一成绩，Alphabet成功进入“万亿美元市值俱乐部”，成为继苹果(AAPL.US)、微软(MSFT.US) 和 亚马逊(AMZN.US)之后，第4家实现万亿美元市值的美国科技公司。
苹果16日收盘时的市值为1.38万亿，微软是1.29万亿，Google是1万亿、亚马逊是9310亿(去年曾经破万亿)、以及脸书6324亿，五大科技公司的市值合共为5.2万亿，数字惊人，占史坦普500家公司总市值的17%；在5.2万亿之中，3.5万亿都是过去五年所增加的。
五大公司中，过去一年，苹果的股价升幅最大，达103%，微软和脸书的升幅也超过50%，Google则升33%，反映出五大科技公司一直是投资者的最爱。
民主党总统候选人桑德斯和华伦都说，五大公司太巨大，不但垄断，而且操纵人们的生活，因此有必要分拆。但投资者对此并不关心，继续买入五大公司的股票，使它们继续膨胀。
联邦司法部、国会和多个州政府，还有欧盟都要调查五大公司，不满它们处理用户个人资料的方法，但是投资者继续以它们作为投资对象，使五大公司愈来愈大。
以Google来说，加州政府正调查它的搜索引擎和安卓操作系统，因为州政府的律师认为，Google搜索引擎垄断了市场，而手机和电脑使用的安卓系统则附带Google的多项应用程式；Google在这两方面的优势是其他小型科技公司难以竞争的。
Actionable Items
但投资者对此并不关心，继续买入五大公司的股票，使它们继续膨胀。
I like to think about the above statement, why investors do not care about negatives, and choose to invest those big companies.
Apple >103%
Facebook, Microsoft >50%
Google > 33%
Amazon Jan. 4, 2019 $1575,
Dec. 27, 2019 $1868
Key largo portfolio first rebalance
Jan. 17, 2020
It is time for me to practice what I learn. I like to work on my first rebalance next week. I also copy some verses from bible to encourage myself to work hard and think carefully about my decision.
Introduction
It is time for me to practice what I learn. I like to work on my first rebalance next week. I also copy some verses from bible to encourage myself to work hard and think carefully about my decision.
First rebalance
19 懒惰人的道像荆棘的篱笆，正直人的路是平坦的大道。 20
I like to sell the market change, and then purchase bond.
Follow up
January 21, 2020
12:22 AM
Victoria portfolio first rebalance
Jan. 17, 2020
It is time for me to practice what I learn. I like to work on my first rebalance next week. I also copy some verses from bible to encourage myself to work hard and think carefully about my decision.
January 20, 2020
Base price 67.34,
Price $77.23,
Units 140
Cost 9427.00
+1384.68 (+14.69%)
June 1, 2019 - purchase date
Plan to sell 18 share, price $77.23, January 21, 2020
$1390.14 = 18 * $77.23
VFV.TO
Introduction
It is time for me to practice what I learn. I like to work on my first rebalance next week. I also copy some verses from bible to encourage myself to work hard and think carefully about my decision.
First rebalance
19 懒惰人的道像荆棘的篱笆，正直人的路是平坦的大道。 20
Follow up
11:31 PM January 20, 2020- S & P 500 Index
January 20, 2020
Base price 67.34,
Price $77.23,
Units 140
Cost 9427.00
+1384.68 (+14.69%)
June 1, 2019 - purchase date
Plan to sell 18 share, price $77.23, January 21, 2020
$1390.14 = 18 * $77.23
VFV.TO
- FTSE
$11,001
Base price: 34.43
Price: 36.67
Units: 300
Cost: 10,329.00
Profit: 672.00 (6.51%)
Plan to sell 18 share, price 36.67, January 21, 2020
$660.06 = 18 * 36.67
VDU.TO
- Balanced ETF
$5416.00
Price 27.08
Base praice 25.44
Units 200
Cost 5088.00
Profit: 328.00 (6.45%)
Plan to sell 12 share, 12 * 27.08 = 324.96
VBAL
VBAL
Orders to sell
Thursday, January 16, 2020
REST Web Services 01 - Introduction
Recession-proof health care ETFs to buy:
Here is the article.
- Health Care Select Sector SPDR Fund (XLV)
- Vanguard Health care ETF (VHT)
- iShares Global Health care ETF (IXJ)
- Invesco Dynamic Pharmaceuticals ETF (PJP)
- iShares Nasdaq Biotechnology ETF (IBB)
- SPDR S&P Health Care Equipment ETF (XHE)
- iShares U.S. Health care Providers ETF (IHF)
- Global X Longevity Thematic ETF (LNGR)
- Invesco S&P 500 Equal Weight Health Care ETF (RYH)
Book chapter: Track Your Progress and Rebalance When Necessary
January 16, 2020
I plan to read the book chapter from the book "The boglehead guide to investing".
Rebalancing may also improve your returns, since asset classes have had a tendency to revert to the mean (RTM) over time. By rebalancing, you’re selling a portion of your winning asset classes before they revert to the mean (drop in price) and you’re buying more of your underperforming asset classes when their prices are lower, before they revert to the mean (increase in value). So, you’re selling high and buying low. If you believe in RTM, rebalancing could increase your returns. Jack Bogle believes in RTM, and we do, too.
Introduction
I plan to read the book chapter from the book "The boglehead guide to investing".
Revert to the mean (RTM)
Rebalancing may also improve your returns, since asset classes have had a tendency to revert to the mean (RTM) over time. By rebalancing, you’re selling a portion of your winning asset classes before they revert to the mean (drop in price) and you’re buying more of your underperforming asset classes when their prices are lower, before they revert to the mean (increase in value). So, you’re selling high and buying low. If you believe in RTM, rebalancing could increase your returns. Jack Bogle believes in RTM, and we do, too.
Everything About REST Web Services - What and How - Part 1
January 16, 2020
I like to learn restful web service continuously in January 2020. I spent over 30 minutes to read the article.
Introduction
I like to learn restful web service continuously in January 2020. I spent over 30 minutes to read the article.
My retirement life will be super challenging
January 15, 2020
It is my personal finance research. I like to write a blog called "My retirement life will be super challenging".
I just had 53 year old birthday in Oct. 2019. I also learned that I had economics behavior problems. I did not spend time to learn how to invest from 1996 to 2018 December, so I left my USA 401 K and IRA accounts no change from 2010 April to 2019 April, capital preservation for Par tech 401 K and IRA CD in Amtrust bank. I will definitely take the consequence, and I will definitely have very challenging life after I retire in Canada.
I was smart to invest my own 401 K for three jobs as a software engineer from 1999 to 2001, Online gaming system, Trendium inc, and then from 2006 to 2007 Par tech inc. I invested IRA one year in 2005 as well. So I invested over $22,000 US dollars.
If I did not close all my funds and then put into IRA CD from 2006 to 2009, my retirement fund will grow with US S & P 500 Index, those over 10 years will create more than three times more market change, over $66,000 US dollars. I just could not believe that my huge mistake and I have common mistakes called recency bias, and paralysis by analysis.
But I got lost in my busy life to learn how to handle my money properly. I did not spend time to learn until I felt depressed in November 2018. Since I could not solve my own housing problem in Canada, I only could save a down payment less than 20% after I worked 10 years full time.
I have to figure out how to catch up, and push myself to learn as a self-learner.
I learned from MIT open course Andrew Lo, finance introduction, time and risk management are two things to make finance really hard. I messed up two things, one is 20 years time, one is risk management from 1999 to 2019. What should I do next?
I have $9000 Canadian dollar RRSP, and less than $30,000 US dollar IRA and 401 K. I had 53 years old birthday in Oct. 2019. How can I make a living to use those small amount retirement fund?
Make sure that I will work on something meaningful, help myself and also share my struggle and hard work journey as well. I may need to work on research about social service, social housing, and gain more skills like living in rural area and small cities.
Introduction
It is my personal finance research. I like to write a blog called "My retirement life will be super challenging".
My 401 K and IRA / Risk management
I just had 53 year old birthday in Oct. 2019. I also learned that I had economics behavior problems. I did not spend time to learn how to invest from 1996 to 2018 December, so I left my USA 401 K and IRA accounts no change from 2010 April to 2019 April, capital preservation for Par tech 401 K and IRA CD in Amtrust bank. I will definitely take the consequence, and I will definitely have very challenging life after I retire in Canada.
I was smart to invest my own 401 K for three jobs as a software engineer from 1999 to 2001, Online gaming system, Trendium inc, and then from 2006 to 2007 Par tech inc. I invested IRA one year in 2005 as well. So I invested over $22,000 US dollars.
If I did not close all my funds and then put into IRA CD from 2006 to 2009, my retirement fund will grow with US S & P 500 Index, those over 10 years will create more than three times more market change, over $66,000 US dollars. I just could not believe that my huge mistake and I have common mistakes called recency bias, and paralysis by analysis.
But I got lost in my busy life to learn how to handle my money properly. I did not spend time to learn until I felt depressed in November 2018. Since I could not solve my own housing problem in Canada, I only could save a down payment less than 20% after I worked 10 years full time.
I have to figure out how to catch up, and push myself to learn as a self-learner.
Actionable Item
I learned from MIT open course Andrew Lo, finance introduction, time and risk management are two things to make finance really hard. I messed up two things, one is 20 years time, one is risk management from 1999 to 2019. What should I do next?
I have $9000 Canadian dollar RRSP, and less than $30,000 US dollar IRA and 401 K. I had 53 years old birthday in Oct. 2019. How can I make a living to use those small amount retirement fund?
Make sure that I will work on something meaningful, help myself and also share my struggle and hard work journey as well. I may need to work on research about social service, social housing, and gain more skills like living in rural area and small cities.
Wednesday, January 15, 2020
Coldest day in last 10 years in Vancouver
January 15, 2020
It is toughest day to go to work and go home as well. I like to write a blog to document my experience.
So this morning I saw a heavy snow outside my window, so I called the office around 8:00 AM and then I said that I will be in the office around 11:00 AM. I need to avoid rush hour.
I did go out at 10:00 AM, and then the train was not so busy but I saw the severe weather warning. The city suggested us to stay at home instead.
I thought about the warning giving out by the city. I did some research and by my experience, I decided to leave office early at 4:00 PM.
I saw bus driver could not control the stop and stopped the bus further 10 meters. I saw the danger sign from bus drivers taking risk to drive.
I waited the skytrain over 10 minutes, but the train was full. So I decided to take bus and then walked to home.
Introduction
It is toughest day to go to work and go home as well. I like to write a blog to document my experience.
Go to work
It was the coldest day on January 14, 2020. I went to skytrain and waited over 14 minutes to catch a train to China town station from Main street station.So this morning I saw a heavy snow outside my window, so I called the office around 8:00 AM and then I said that I will be in the office around 11:00 AM. I need to avoid rush hour.
I did go out at 10:00 AM, and then the train was not so busy but I saw the severe weather warning. The city suggested us to stay at home instead.
Go back to home
I thought about the warning giving out by the city. I did some research and by my experience, I decided to leave office early at 4:00 PM.
I saw bus driver could not control the stop and stopped the bus further 10 meters. I saw the danger sign from bus drivers taking risk to drive.
I waited the skytrain over 10 minutes, but the train was full. So I decided to take bus and then walked to home.
How to escape the emotional traps?
January 15, 2020
It is my personal finance research. I have to read a book in order to continue to learn how to invest, and it is important for me to learn by reading, not just watching youtube.com video, reading articles.
This is the question with the answers in the book called Boglehead guide to investment.
Introduction
It is my personal finance research. I have to read a book in order to continue to learn how to invest, and it is important for me to learn by reading, not just watching youtube.com video, reading articles.
How to escape the emotional traps?
This is the question with the answers in the book called Boglehead guide to investment.
- Recency bias
- Overconfidence
- Loss aversion
- Paralysis by analysis
- The endowment effect
- Mental accounting
- Anchoring
- Financial negligence
Be a risk manager instead of a risk avoider. Believing you are avoiding risk can be a costly illusion.
Case study: My investment Casino account - $1000 dollars
January 15, 2020
I like to find an individual stock and then invest on the stock. I like to work on a short research how to work on my casino account on my Questrade.com.
I went to Facebook tech event in 2015 in the city of Vancouver. I learned so much from Facebook tech events. I should have invested on Facebook stock in 2015.
I should have invested on Amazon stock from 2016.
Introduction
I like to find an individual stock and then invest on the stock. I like to work on a short research how to work on my casino account on my Questrade.com.
Case study
I went to Facebook tech event in 2015 in the city of Vancouver. I learned so much from Facebook tech events. I should have invested on Facebook stock in 2015.
I should have invested on Amazon stock from 2016.
Book chapter: Mastering your investments means mastering your emotions
January 15, 2020
It is important for me to read a book chapter today. I like to read the book called "The boglehead guide to investing". I believe that I should invest time to read a few investment books, and then learn the basics of investment first.
Paralysis by analysis
As a result, some people don't make a choice and don't invest. The investment trap called "Paralysis by analysis" is the first cousin to loss aversion.
How to intelligently manage risk
I like to learn the basics of investment, so I like to count how many hours I spend to read the investment books.
In January 2019, I came back to stock market and now after 12 months I have over 5000 unrealized gain on my less than $100,000 portfolios.
Introduction
It is important for me to read a book chapter today. I like to read the book called "The boglehead guide to investing". I believe that I should invest time to read a few investment books, and then learn the basics of investment first.
Book chapter reading
I like to check your emotions at the door. Here are common mistakes.- Playing your hunches
- Blindly following the crowd or an investment guru
- Trying too hard
- Acting on a hot tip
- Relying on supreme self-confidence
- Going for it to make a quick killing
- Playing it ultra-safe
- A multitude of other emotionally based on investment decisions
Behavioral economics
Common mistakes
- Buy emotionally and justify with logic
Late 1960s, Amos Tversky and Daniel Kahneman
Judgemental heuristics
Greed and fear
Thanks to greed, investor excitedly chase performance and buy when the market is up. Thanks to fear, they panic and sell when the market is down and lock in their losses.
It is hard to make a profit when you buy high and sell low.
- Recency bias -
- Ego and overconfidence
- Loss aversion
- Paralysis by analysis
- The endowment effect
- Following the herd
- Mental accounting
- Anchoring
- Financial negligence
- Keeping emotions in check
Over confidence
Case study, 1994, a hedge fund called Long Term Capital Management (LTCM), two noble prize-winning economists
Over confidence Common mistakes
- Pick stocks
- Time the market
- Know more about what's going to happen in the economy than other people do
Loss aversion
Common mistakes
- Do you check your portfolio every day?
- Do you sell a stock or mutual fund when it earn a healthy return to lock in the profit?
- Do you sell stocks/mutual funds whenever you see them going down?
- Are you a young person who keeps most of your savings in bonds or safe, ultraconservative investments?
Consider the taxes due on the interest earned and inflation, there is no safe as those who are loss averse believe it to be.
Paralysis by analysis
As a result, some people don't make a choice and don't invest. The investment trap called "Paralysis by analysis" is the first cousin to loss aversion.
How to intelligently manage risk
- Pay off your credit card and high interest debts and stay out of debt
- Formulate a simple, sound asset allocation plan and stick to it
- Systematically save and invest a part of each paycheck in accordance with the asset allocation plan
- Invest most or all of your money in index funds
- Keep your costs of investing and taxes low
- Don't try to time the market
- Tune out the noise
- Rebalance your portfolio when necessary and stick with your plan
You will buy low, sell high and have the power of compounding working in your favor.
A smart investor
I like to learn the basics of investment, so I like to count how many hours I spend to read the investment books.
In January 2019, I came back to stock market and now after 12 months I have over 5000 unrealized gain on my less than $100,000 portfolios.
Case study: 2000 China house price
January 15, 2020
I was so ashamed of myself to waste all my net income from 1999 to 2001 and burned $40,000 US dollars credit card expense on citi credit card, I did case study in 2019, whereas in China back from 1999 to 2001 with house price $1000 Chinese yuan/ square foot.
I like to look into the facts, and I like to push myself to be frugal, and work hard to make a living as a 53 years old.
三周前，在北京举行的2020中国经济形势解析高层报告会上，重庆市前市长黄奇帆表示，以2000年的房子价格计算，全国平均的房价是每平方米一千元左右，现在差不多一万元，全国的房子均价涨了十倍左右。他说，从2000年到2017年，全世界房地产的增长规模以这么快的速度，从一亿平方米涨到十七亿平方米，全世界近一百年历史上绝无仅有。
Introduction
I was so ashamed of myself to waste all my net income from 1999 to 2001 and burned $40,000 US dollars credit card expense on citi credit card, I did case study in 2019, whereas in China back from 1999 to 2001 with house price $1000 Chinese yuan/ square foot.
Case study
I like to look into the facts, and I like to push myself to be frugal, and work hard to make a living as a 53 years old.
三周前，在北京举行的2020中国经济形势解析高层报告会上，重庆市前市长黄奇帆表示，以2000年的房子价格计算，全国平均的房价是每平方米一千元左右，现在差不多一万元，全国的房子均价涨了十倍左右。他说，从2000年到2017年，全世界房地产的增长规模以这么快的速度，从一亿平方米涨到十七亿平方米，全世界近一百年历史上绝无仅有。
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