富人与穷人差异是什么？ ​​​​美国理财专家：致富习惯不同

Here is the article.

专家考利通过记录和分析发现，那些靠着运气和继承致富的人，其实只占很小的一部分，即便是通过继承得到财富的人，也往往有着与穷人明显的思维习惯的不同。所以，运气致富，只是一小部分因素，真正的差距另有原因。

1、富人相信好习惯对人生获取财富的重要性
2、富人更加重视人脉的重要性
3、富人更加愿意结实新朋友
4、富人更重视攒钱
5、富人坚信自己能够开创成就

Here is the link of the book. 

“窮人”與“富人”之間就差這13個“好習慣”，你有你也能成“富人”

Here is the link.

Ma Yun:

看不懂， 看不见， 没赶上

考利， 5年富人和穷人习惯调查：

Case study: Design twitter system as an interviewer

Case study: vertical binary tree mock interview as an interviewee

Case study: remove k digits

Feb. 3, 2020

Case study

The mock interview time: Feb. 3, 2020, 10:00 PM

Stay healthy in 50s, more sports in 50s

Stay healthy in 50s

More sports in 50s

I gained 8lbs this winter, from 184 lb to 192 lb, obesity weight, my height is 168 cm, 5 foot 5 inches. I like to give those eight pounds a name, it is dangerous for me as a 50s. I weigh 192 lb. I decide to say goodbye to those 8 lbs.

I like to make those 8 lbs meaningful. So I like to use a sports to memorize it. I start to swim and practice dive board diving. I talked to life guards in the pool, and like to make 8 new friends while I try to give away those extra fat through exercise daily in the evening.

Here are highlights:

1. 8 lbs - each lb I have to dive 50 times, and I plan to spend $50 monthly pass, dive 400 times in two months.
2. Meet 8 new people in the pool area. I was not a good learner, one day a person talked to me, and showed me how to dive when he was a kid. He also suggested me to wear a life jacket. I started my journey, and I know that it is to take calculated risk.

Let money make decision for you is a mistake

Later - a great startup company in Vancouver

App Annie - a great company in Vancouver

Feb. 7, 2020

Introduction

I had chance to learn two startup company this week in the event of Hackerx. I like to spend twenty minutes to learn the company and technology.

Author Michael Lewis discusses The Big Short and the future of finance

Here is the link.

Author Michael Lewis discusses his book The Big Short: Inside the Doomsday Machine, the future of finance as he sees it, and his thoughts on whether today's business students have a chance at changing it. Part of the Dean's Speaker Series, co-sponsored by the Center for Responsible Business as part of its Peterson Series on Sustainable Finance. (September 13, 2010) The University of California Berkeley Haas School of Business is one of the world's leading producers of new ideas and knowledge in all areas of business - which includes the distinction of having two of its faculty members receive the Nobel Prize in Economics over the past 15 years. The school offers six degree-granting programs. Its mission is to develop innovative business leaders - individuals who redefine how we do business by putting new ideas into action, and who do so responsibly. The school's distinctive culture is defined by four key principles - question the status quo; confidence without attitude; students always; and, beyond yourself.

'Moneyball' Author Michael Lewis' Key to Success Might Surprise You

Here is the article.

I like to read the statements quickly in the following:

For bestselling author Michael Lewis, laziness is viewed as a helpful route to success, not a detriment.

He doesn’t view the attribute, which he defines as being slow to act, as a negative, he told Qualtrics CEO Ryan Smith, according to CNBC, but as a way of figuring out what he really wants to do.

“My laziness serves as a filter,” Lewis said. “Something has to be really good before I’ll decide to work on it.”

Lewis is the author of the Blind Side, the book about a southern family who takes in an illiterate football player that was turned into an Academy Award winning film, and several books about about financial crises, including The Big Short, Flash Boys and Boomerang. He also wrote the hit baseball book Moneyball.

Top 20 of Best Finance Books Recommended Most Times by Finance Pros Classics & New Books on Finance

Here is the article.

Michael Lewis interview on "Moneyball" (2003)

Here is the interview.

老虎说 : 华尔街投资女王给散户的三条军规

Here is the link.

Bear market, I like to see if I am ready!

Feb. 4, 2020

Introduction

It is tough for me to limit my time to spend on reading on investment. I like to go back to technology learning in 2020. But I have to push myself to be responsible, since my TFSA account has all my savings last 10 years.

Case study

I wrote something to share with a SJTU wechat group. Let me share here as well. I was the victim of finance illiterate from 1999 to 2019. Twenty years I was afraid to challenge myself, why I can not be rich and wealthy. One of sisters bullied me when she visited me, you even could not compete with a Chinese graduated from a college last one over 1000 in ranking. She even threatened me I will lose the job even ...

I have to learn to push myself to learn how to invest, be frugal; Bible teaches me a lot of good things. But in business world, I have to relearn things to protect myself, have time to learn personal finance.

I have to take care of my own business.

Actionable Items

Follow up
Feb. 7, 2020

I think that it is important for me to learn human behavior. It is better for me to review my mistakes back in 2009, and ten years after.

I remembered that back in 2009, I was so depressed to get Canadian immigration denied. I dreamed in the night and then I went back to China, and I told people that I went to USA before. Or I woke up and like to go back to the dream, since in my dream I caught the mistake in my paper work. I understood that it may be a sign of depression. I just quickly checked the depression, if the symptom lasts more than a week, then it is dangerous.

But I act on my finance decision, I sold everything in the stock market in my Par 401 K without considering at least 2 or 4 hours study of personal finance. And I had some funds in Scottrade.com, and then I went to sell everything to move into my bank IRA CD instead.

In 2009, I attended a private bible study, and then I asked the question why I attend bible study regularly, the mistake still happens.

Case study: remove k digits mock interview as an interviewer

Case study
Here is the link.

I’m still waiting for the perfect dividend ETF

Here is the article.

I like to read the article and learn how to argue that one ETF is not perfect.

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) suffers from the same problem. The MER is a very reasonable 0.22 per cent, but financials accounted for 61.8 per cent of the fund as of May 31. Utilities and telecoms – two sectors known for high and growing dividends – together accounted for just 12 per cent. Why can't an ETF be cheap and well-diversified?

Three top ETF picks from Industrial Alliance’s John DeGoey

Here is the article.

Avoid financials overload: Watch how you pair up your ETFs

Here is the article.

Thirteen high-yield ETFs for income-seeking retirees

Here is the article.

Mr. Shaunessy’s total-return investing approach entails accepting current income and realized capital gains as equal when looking at portfolio returns. For this approach, he favours multiasset ETFs such as the iShares Core Balanced ETF Portfolio (XBAL), the iShares Core Growth ETF Portfolio (XGRO), the Vanguard Balanced Portfolio ETF (VBAL) and the Vanguard Growth Portfolio ETF (VRGO).

“Don’t overthink your investment decision,” Mr. Shaunessy says. “Cheap and reliable passive portfolios – that’s the way to go.”

Five things your dividend ETF isn’t telling you

Here is the article.

Case study: My crafting skills - sweater I made with a story in my 20s

Feb. 2, 2020

Introduction

It is my time to write something for my crafting skills back in 1992. I still remembered that winter break I was little depressed and worried about my future, in 1992 I planned to graduate my master degree from Shanghai Jiaotong University. I took a winter break to spend time with my mom.

Case study

I came cross this picture and then I had so many story to tell. I like to record some voice about myself, how I grew up and problems I had.

I found the design of sweater, and I spent almost one month pay $80 yuan to get real wool and thread the sweater by myself.

Picture facts:
1. Time: probably in 1992, I worked in Shanghai after graduate from a master degree from SJTU
2. Place: Shanghai

Because I am the business person, not so smart. I went back to Florida in 2015, and then I threw the sweater with other one I made to garbage can. I just could not believe that I did the stupid thing like that.

30 Minutes That Will Change Your Perspective on Life | Kobe Bryant Motivation

Here is the link.

THE MIND OF KOBE BRYANT - CONFIDENCE

Here is the link.

THE MIND OF KOBE BRYANT - HARD WORK

Here is the link.

Facts about my hero, Kobe Bryant. 1. He lives and breathes basketball. 2. His competitive drive is his most powerful skill. 3. Hate fuels his game. 4. He wanted to be the best, knew it was a stretch, became LARGER than just being the "best". He became an icon, an inspiration, a legend. 5. He proved that having a mindset where you always try to be better than who you were yesterday will ALWAYS lead to success no matter the obstacle.

Mamba Mentality - Kobe Bryant (Motivational Video)

Here is the link.

OUTWORK Them ALL! | Kobe Bryant TRIBUTE | #BelieveLife

Here is the link.

1. Outwork everyone

What is important to you? I have done everything I can do to be a best player. 

"You Can Work HARDER Than That!" | Kobe Bryant (@kobebryant) | Top 10 Rules

Here is the link.

1. Have a champion's mentality
2. Outwork your potential
3. Learn from failures
4. Be a long term thinker
5. Find your passion
6. Challenge yourself to grow
7. Keep going
8. Protect your dream
9. Be driven
10. Achieve greatness

Work on fundamentals, from age 12 to age 14, best one in the age of 14. 

Rest in the end, not in the middle. 

Kobe Bryant | Mamba Mentality | USC Performance Science Institute

Here is the link.

Laker great Kobe Bryant shares his competitive and business philosophy with USC students. Pete Carroll at 23:25; Jeanie Buss at 26:36; Clay Helton at 57:46.

Kobe Bryant’s Last Great Interview

Here is the link.

THE MINDSET OF A WINNER | Kobe Bryant Champions Advice

Here is the link.

Work ethnic

Craft
Palm
Quickness
Study game more

Mental switch - in that cage you have the character

Mental and emotional strong - reality the situation, get over yourself

Training the program - 82 games in a season
My legs will be there ...
GOAT mountain -

ins and outs of the game -

What is your decision making process?

How to Measure Your Net Worth

Here is the link.

How to increase your net worth

Influence, voice  <- money follows
health, skill

Health - Body fat, stamina

Four areas of

Credit
Income
Savings
Investment

Income - Active/ Passive
Short, middle term and long term

multiple streams of income

One solid income - 90%, strong
Investments - stocks and bonds, and portfolios.

Start to track all of them
Write it
Track it
Put a goal
Drive it

Write down how many people follow your voice
Write down numbers about your health
Write down your skills

How to Network Like Casanova

Here is the link.

1. The Flirt
2. The detective
3. The promoter
4. The success
5. The man
6. The comedian

How Rockefeller's Became The Richest Family Of All Time

Here is the link.

Back to algorithm practice on Leetcode.com

Back to system design

Back to Linkedin learning

Feb. 2, 2020

Introduction

Linkedin learning is such a great place to find good and quality courses, I like to learn some technologies, programming language, Object-oriented language, python etc. I like to spend time daily to work on my learning.

Back to linkedin learning

I like to spend one hour or two at least every day to watch the course. And then I will write down some notes, and then find some articles to do my own research.

I think that it is so important for me to learn something challenging every day.

Case study: Weekend work on my Key Largo portfolio

Case study: My Honda Accord purchased in 2015

45567 YALE ROAD 103, Chilliwack

Property Summary for 45567 YALE ROAD

Property Type

 

Condo

MLS® Number

 

R2427777

Year Built

 

2008

Date Added

 

27 January 2020

Stories

 

1

Basement

 

None

Neighborhood

 

Chilliwack Proper

Postal Code

 

V2P0B2

Description for 45567 YALE ROAD

Move in tomorrow. Vacant ground floor unit in great condition. Close to hospital, shopping and transportation. Open concept. Shows light and bright. Rich wood cabinets, lots of counter space black appliances including b.i. microwave. Insuite laundry is a bonus. Master bedroom has large walk in closet. Perfect for the first time buyer or investor. No rental restrictions. (id:1937)

Price: 

$184,800 CAD

45744 SPADINA AVENUE 204, Chilliwack

Here is the detail: 

$182,800 CAD

Property Summary for 45744 SPADINA AVENUE

Property Type

 

Condo

MLS® Number

 

R2431203

Year Built

 

1982

Date Added

 

27 January 2020

Stories

 

1

Basement

 

None

Neighborhood

 

Chilliwack Proper

Postal Code

 

V2P1T6

Description for 45744 SPADINA AVENUE

Investor or first time home buyer Alert! This is a rare find with a high cap rate for investors, rental allowed. Enjoy this south Facing 2 BR corner unit, living room opens to a balcony with a view of the mountains. Recently renovated with new flooring and paint. Conveniently located near downtown Chilliwack, close to public transport, hospital, medical care, shopping, recreation. Shared laundry, electric heat and covered parking. (id:1937)

My case study on owning or renting in Vancouver

Feb. 2, 2020

Introduction

It is my personal finance research. I like to write a short case study for me to look into my decision making. How should I review my decision process and make it work for me as  a 53 years old single Chinese Canadian citizen.

Case study

Recently I got an approved loan from Scotia bank, $150,000 Canadian dollars, and then I have $65,000 dollars in my TFSA account. I am looking int the condo market.

The cheapest one is in Surrey this week, $199,000 dollars for 400 square foot, back in 2017, it is $100,000 dollars. Here is my blog. 40 years old.

I did look into one unit in Chilliwack, $179,000 for one bedroom, current rent is $650, sold out quickly. 40 years old.

My USA asset is doing ok after I left USA 10 years. My condo in Florida has much better market change, which increases over $50,000 US dollars, market value is $135,000 US dollars. But my 401 K and IRA account has been messed up since my finance illiteracy. I put them back in stock market in May 2019. It is hard for me to accept myself, I chose not to get depressed, and take as is.

Now I have to pay rent around $480 dollars, covering my wifi, water and parking and all other things. I use pay as you go to save my cost of living for my mobile phone service. I also get Skype account and pay $60 US dollar annual fee.

My problem is to work less hours since I do not discipline myself, I take chance to put safety first to take a few hours in heavy snow day.

My problem is that I never manage over $100,000 dollar portfolio. I have to learn how market works and learn so many basics in my 50s. It is hard and I have to constantly remind myself to learn basics, do not speculate, invest long term.

What You Need To Know About The Decay Of Leveraged ETFs

Here is the article.

Case study: 2001 MSFT 10 share $66/ share purchase

Feb. 2, 2020

Introduction

I like to do a quick case study, and see what will be my return after 20 years of 10 shares of MSFT. I sold it sometime in less than three years.

Case study

I notice that MSFT stock 10 times more from 2010 to 2020. So I like to do a case study of my purchase back in 2001. Here is the pdf file I share on github.

What You Need To Know About The Decay Of Leveraged ETFs

Here is the article I like to read.

QQQ vs. TQQQ: What's the Difference?

Here is the article.

Case study: weekend work for Victoria portfolio

Feb. 2, 2020

Introduction

It is so important for me to learn how to invest. I do not want to time the market, and also I like to discipline myself to stay 60% equity and 40% of bond. I need to plan ahead in 2020, how much should I purchase equity fund?

Case study

My TFSA account is tax free, and I have limit of $65,000 dollars. I like to move the fund from Scotia checking account to TFSA.

Right now, I have $5,000 dollars on balanced fund, $20,000 on equity funds like VFV.TO and VDU.TO, and I need to set up $65,000 dollars properly.

$24,000 for bond, $36,000 dollars for equity fund.

I like to purchase some VUN ETF, and Nasdaq 100 index ETF, information technology ETF as well. I like to take some risk and seek high return in 2020.

Actionable Items

Feb. 2, 2020 10:37 PM
Please review top 10 annual return in last 10 years. Here is the blog.

Raining on the All Seasons Portfolio

Feb. 2, 2020

Introduction

It is my research how to discipline myself to keep my portfolio Victoria stay in balanced fund, 60% equity and 40% bonds. So I recently reviewed all weather fund, and I had difficulty to understand long term treasury bond and short treasure bond. Today I like to review the article written by my favorite author called Canada couch potato.

Reading time

Here is the article.

Why Currency Hedging Doesn’t Work in Canada

Here is the article.

Which one really makes me smarter? Algorithm or personal finance research?

Feb. 2, 2020

Introduction

I started my personal finance research from Nov. 2018, and after more than 12 months, I got my car bumper cracked yesterday. It reminds me to work on the difference research, which one really makes me smarter? Algorithm or personal finance research?

Case study

I noticed that I started to change my personality. I start to learn how to reduce my cost in order for me to save time. I need time to learn personal finance, how to learn basics of finance. So I will think things differently.

For example, I like to choose which five people I like to talk to during the next 12 months, who to hang out with. I prefer to swim and play tennis and read a lot of articles, spend time to learn instead of spending time to socialize. I also joined Jiaotong university wechat groups, and there are thousands of Chinese in Vancouver area.

I need to go out to meet people in person on tennis court, or other fields like running wechat group in Burnaby.

Case study: VTI and VUN comparison

VTI and VUN case study:

Here is the article.

Scenario

- you buy $100 CAD of VTI and VUN on the same day with exchange of 1 CAD = 0.75 USD
- your shares in the underlying US equities double in value
- you sell both when 1 CAD = 1 USD
- ignore MERs/exchange fees/trade fees/dividends

VUN

- $100 CAD buys X shares of US equites worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them at get $150 CAD at the current exchange

VTI

- $100 CAD buys x shares of US equities worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them and get $150 CAD at the current exchange

No difference.

Where your calculations went wrong is that you doubled the value of each account in both currencies. In reality if the CDN dollar got significantly stronger over the timeframe of the investment VUN's returns shown in CAD would be lower as a % than VTI's returns shown in USD.

The way to look at it is both VUN and VTI buy exactly the same underlying investments so they cannot have a different value ever once you take out fees/taxes and such.

« Last Edit: July 06, 2018, 08:59:53 AM by Retire-Canada »

Case study: VTI and VUN

Here is the article I like to review. 

What I meant is that you sell off whatever one has the best exchange rate when it's time to sell.

Example: (All values listed in CAD) If I bought $100 of VUN and $100 of VTI when the exchange rate was 1 CAD =0.75 USD, and years later when I was looking to sell my shares had doubled in value and the exchange rate was now 1 CAD = 1 USD I would sell off my VUN before my VTI, because even if the VTI was purchased with Canadian currency at the time it is still held in USD.

Calculation breakdown:
VUN
Cost: $100 CAD
Value after X years: (Initial value) x (percent increase) x (1 + (difference between currency price at purchase - at sell)) ($100 x 200% 1+(1-1)) = $200

VTI
Cost: $100 CAD
Value after X years: (Initial value) x (percent increase) x (1 + (difference between currency price at purchase - at sell)) ($100 x 200% 1+(0.75-1)) = $150

Granted, this ignores all the other factors like the difference in MERs, and withholding tax, and any dividends that you're receiving over this period as the exchange rate is shifting. But, it does give you a little insulation in case you're concerned that the exchange rate might shift dramatically between when you buy and when you hope to retire.

Unless my math is way off, which is entirely possible.

---------------------------------------------------------------------

The above calculation is wrong! 

VNU ETF study - tax issue

Here is the discussion I like to review: 


I hold both VTI and VUN - they are essentially the same except for tax treatment.

VUN is a TSX-listed wrapper for VTI, and it trades in Canadian dollars. If VTI doesn't change, but the CAD dollar goes up 1%, then VUN will drop 1% (because VTI is now worth 1% less in terms of the canadian dollar).

All that is to say - they are equivalent. The advantage of buying VUN is that you don't incur the cost of exchanging your CAD into USD, as the fund takes care of it. When you hold VUN, you are holding VTI.

The difference comes if you are holding them inside an RRSP. In an RRSP, there is no tax on foreign dividends (normally you pay the US govt a 15% withholding tax). However, this is only the case if you hold VTI directly. If you hold VUN in your RRSP, the 15% foreign dividend tax is swallowed by the VUN wrapper and you can't recover it.

In a TFSA, you have to pay the 15% tax no matter which one you hold, and in an unregistered account you can get a foreign dividend tax credit no matter which one you hold.

Summary: hold VUN in your TFSA and registered account (to avoid forex fees), and VTI in your RRSP (to avoid the 15% foreign dividend tax).

Actionable Items

RRSP - purchase US ETF directly, no foreign dividend tax 
TFSA - avoid forex fees 

The True Risks Behind Preferred Stock ETFs

Here is the article.

Preferred vs. Common Stock: What's the Difference?

Here is the link.

Burton Malkiel Wrote "A Random Walk Down Wall Street" In ‘73. Have His Views Changed?

Feb. 1, 2020

Introduction

I watched the video the first time back in December 2018, one month after I started my personal finance research. I looked up my blog and found the blog related to Burton Malkiel, but I did not write any notes. I know at that time I did not know anything about investment and finance.

Second time to view 

Here is the interview.

Legendary economist and financial thought leader, Burton Malkiel shares investment lessons learned more than four decades after writing his classic book, A Random Walk Down Wall Street. WEALTHTRACK #1403 broadcast on July 07, 2017.

2:20

Changes on the street since 1973

- Digital revolution
Quantitative models, algorithms & high frequency trading

- Tax-deferred investment accounts
1974 IRA created
1978 401 created

- ETFs
1993 First ETF created
SPDR S&P 500 ETF (SPY)

Shrinking stock population
Number of publicly traded stocks

46% decrease
1996   8,090

Professor of Economics, Emeritus
Princeton University
Burton Malkiel

1973 random walk in wall street

1976 - index fund introduced by Vanguard - not so successful, very slow to take it off

My notes taken:

home country bias - USA 30% whole world
broad-baesd index - emerging
total market index
cash flow
fundamental index - smart beta
Case talk:  15% bank of America, citigroup,
  goverment bail out / goodbye

expensive/ value weighting
zero - tax-efficient
think thing after tax 20% - 30% short term ( capital gain tax)
human factor
sell-off
sharp market sell-off
not stock picking - diversification
biggest judgement
finance repression
ten-year treasury 2.1%  - zero rate of return

bond component
bond investment
preferred stock
stock substitute
risk-reward ration - stock vs. bond
the preferred stock is safe compared to stock
5-% foreign bonds
United states total market bond - VT - recommended to purchase

Looking for top stocks? Bet on popular consumer brands

Here is the article.


From 1990 to April 8, 2015

Coca-cola - climbing 771 percent
Colgate - 1714 percent
Procter & Gamble 909 percent

Last 25 years
PepsiCo's up 866 percent
McDonald's 1099 percent
Walt Disney 1052 percent

outperform the S & P's 508 percent gain

Those kinds of long-lasting brand-name operations have been keeping portfolios afloat in good times and bad for years.

Case study 

S & P 500 consumer staples sub-index, the sector is up 749 percent since 1990, which is more than 200 percent points higher than the S & P 500 over the same time period.

The outperformance, in part, is because they're large, diversified operations that tend to perform better in a downturn.

Between Oct 2008 to March 6, 2009, S&P 500 consumer staples sub-index fell by 29.68 percent, compared to 41.14 percent for the S&P 500.

Actionable Items

I have to invest more equity fund in 2020. I have two choices compared to s & P 500 index. One is to invest into information technology sector, or consumer or dividend sector.

INVESTOR PAIN

Here is the article.

ANNUAL REPORT OF INVESTOR RETURNS SHOWS WHEN BIGGEST GAPS OCCURRED

I like to copy the paragraph in the following, and then write down a list of items to look into.

In 30 years of monthly investor returns, DALBAR found that equity investors underperformed the S&P 500 to the greatest extent in October, 2008. In this month, equity investors lost 24.21% compared to an S&P loss of 16.80% for a net underperformance of 7.41 percentage points.

The next greatest underperformance occurred in March, 2000, when the S&P surged 9.78% but investors took home only 3.72% for an underperformance of 6.06%.

The underperformance results from bad investor decisions at critical points, the first in the face of severe market declines and the second when the equity market surged.

Underperformance in the face of maximum impact events is attributable to a lack of preparedness and is the subject of the recently released 21st Edition of DALBAR’s Quantitative Analysis of Investor Behavior (QAIB). The 21st Edition also reported:

A key financial habit that can make you rich

Here is the article.

Many investors could be scared of market volatility right now. But those that allow the fear to keep them from investing or to force them out of the market are making a mistake. If you wait and miss the rebound, you’re like to miss out on a lot of gains. And in any kind of market, said Burt Malkiel, the famous economist, the move that gives you the best odds of getting rich is the most basic: Start investing.


- be scared of market volatility - why? I was scared in 2001 to sell VIGRX fund, and sell 401 K and IRA fund in 2009
- keep them from investing or force them out of the market - making a mistake
- wait and miss the rebound, miss out on a lot of gains
- Burt Malkiel - who is the economist?

Investors are prone to be either fearful or overconfident. History shows they buy and sell at almost exactly the wrong times: That’s why, over the past 30 years, equity fund investors have made less than 4 percent annually in the market, compared with an 11 percent return for the S&P 500, according to Boston-based research firm DALBAR.

If you adopt investing as a habit — small sums regularly over time — you’re more likely to be able to stick to it. “Maybe this is the corollary to the main point,” said Malkiel. “You’ve got to have the guts to continue this when things are bad. Anyone who lived through 2008 knows that isn’t so easy.”

In fact, according to the same DALBAR study, in October 2008, equity investors lost 24.21 percent compared to an S&P loss of 16.80 percent for a net underperformance of 7.41 percentage points.

“You do it regularly because if you stop when the market is down, you lose all the advantages of doing it,” Malkiel said.

Jack Bogle: Follow these 4 investing rules—ignore the rest

Here is the article.

Market goes down, it is good for buyers, not good for sellers. When market goes up, it is good for sellers, not for buyers.

The founder of Vanguard Group, the world’s largest mutual fund company, used to have a really basic portfolio that followed an asset allocation known as the 60-40 rule — 60 percent in a U.S. stock index fund and 40 percent in a U.S. bond index fund. He maintained that allocation for himself for years.

Diversification

It is important for me to learn from John Bogle. I think that I should learn the basics first, how to manage the risk in my portfolio? 

If you are perfectly comfortable with risk, you’d put your asset allocation into a 100 percent stock portfolio and keep it there until you die, because historically, that’s the kind of asset that has produced the best returns over the longest period of time. But an all-equity portfolio in 2007–09 would have been a disaster, a point Bogle made in his book “Common Sense on Mutual Funds.” Your portfolio would have recovered eventually, but what if you needed the money during that time span?

Bogle uses bonds to leaven equity risk in his portfolio. He’s comfortable with a simple portfolio, increasing the bond allocation as he ages, because he wants to reduce the risk of a sudden, massive drop in value.

But you can also use funds that represent other asset classes to reduce volatility, like REITs, international stocks and international bonds. It’s more complicated, but research suggests you will get some benefit in terms of reduced risk and, perhaps, higher returns.

Two things to avoid - Won't sell in a panic or buy in greed

The genius of Bogle’s portfolio, for him, is its simplicity. It’s easy for him to track and understand, and therefore stick to. You might like the challenge of trying to maximize your returns by adding diversification or rebalancing — just be sure you can stick to what you decided and won’t sell in a panic or buy in greed. The fundamental thing you want from your portfolio is a sense that it’s the right choice for you over the long term.

A plan that uses low-cost, diversified investments should take care of the other big risk in investing — emotions-based decision-making. For Bogle, being an investing master isn’t about the exact makeup of his portfolio; it’s about tailoring it to what feels right for him and sticking to it.

Efficient-market hypothesis

Here is the link. 

Go-Go Fund

I heard the term from the interview of John C. Bogle, so I decided to look into this term. Here is the article.

While go-go funds were quite popular during the booming market atmosphere of the 1960s, they lost much of their shine in the years that followed. After reaching a peak of 985 in December 1968, the market plummeted to 631 by May 1970, a drop of about 36 percent. In his book The Go-Go Years: The Drama and Crashing Finale of Wall Street's Bullish 60s, financial journalist John Brooks argues that the collapse was comparable to the stock market crash that ushered in the Great Depression, because the stocks that were hardest hit included many popular and high-profile offerings: “As measured by the performance of the stocks in which the novice investor was most likely to make his first plunges, the 1969-1970 crash was fully comparable to that of 1929.”

In Pursuit of the Perfect Portfolio: John C. Bogle

Here is the one hour interview and I like to watch again.

I am thinking about reading John C. Bogle's books. I like to find time to read them.

Study and research 

Diversification

1949 - mutual fund turnover like market

Research - open funds

Balanced fund - 2/3 volatility of the market
S & P 500 index - before it is created, GoGo fund - Junk

Good mentor, died in 1998, 100 years old - Bogle's mentor - Wellington management company

The case for mutual fund management

1960 - index

Vanguard fund 

It is hard to be good. The more you try, sometimes it is worse it is.

35 years old, John Bogle started Vanguard fund in 1960s.

49:00/ 1:01

Perfect portfolio

Asset allocation in my book - regular rebalance - not necessory, 60/40 compared to 80/20 is best option; no easy answer on this.

You do not know, I do not know. Market does not know. Invest regularly. I am 80 years old, planning on my state, 50% bond, 50% equity fund. Too much on stock. Most investors do feel the same.

GDP - what is US GDP, 60% related to GDP.

Peter Lynch - statement - short term is important than long term.

Are you speculative or investing?

How do you think that gold is an investment.

90% - get out of ideas you have to do something.
Do not do something. Just stand there. Just rough idea how to allocate your allocation.

Traits of Ordinary Millionaires | Phil Town

Here is the link.

【天风海外】美股巨头殒落?FANGMA转型和分化

Here is the article.

2020大选年,美股将何去何从？(2 of 3 series)

Feb. 1, 2020

Here is the article.

It is not easy to go over all terms in the first paragraph.

关注高股息ETF及银行、能源和半导体等板块

目前10年期美国国债收益率与标普十分接近，均在1.8%附近，股市对债市资金的吸引力正在提升。参考股利型ETF-iShares Select Dividend ETF，其股息率已达3.6%，远超国债收益。同时，根据CFRA统计显示，在19年第四季度，股利型ETF录得100亿美元资金流入，高于其他因子策略，显示投资者正向防御性板块转向，以规避未来可能发生的风险。结合高股息策略，金融、能源板块不仅股息率高于平均，且估值仅为13.4倍、17.6倍，低于标普平均18.9倍，10年内估值涨幅分别为1%、30%，显著低于标普估值43%的涨幅。叠加回购收益率后，金融、能源板块股息+回购年回报已达6%以上，防御性突出。因此2020年若美股上涨动能衰竭，我们建议关注具备防御属性的高股息金融及能源板块。同时展望2020，随着台积电5nm投产，5G手机更新换代，DRAM及NAND价格企稳回升，云计算资本开支回暖（根据Dell’Oro Group预测，2020年前十大云服务商将新建40处数据中心，推动资本开支双位数增长），我们预计2020年半导体行业规模有望扭转2019年颓势，重回增长，带动相关半导体标的业绩回暖，但需关注业绩增长与估值的匹配性；科技权重股过去十年领衔美股，但个股间或将出现分化，亚马逊、谷歌及Facebook不仅受到监管部门愈发严厉的监管，还面临民主党候选人沃伦等提出的分拆风险。

风险提示：美国2020选举风险，地缘冲突加剧风险，美联储政策转向风险，宏观经济放缓风险

What I work on from 2010 to 2020?

Feb. 1, 2020

Introduction

It is interesting to write what  I did every year from 2010 to 2020. I like to put together pictures I took from all those years, so I can write down what I have accomplished through those years. Those ten years are my best years, with humble spirit, and I tasted normal life working full time first time without changing jobs.

From 2010 to 2020

I will write down something here later.

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

The Lakers’ tribute to Kobe Bryant before their first game after his death | Remembering Kobe

Here is the link.

Case study: My speech of less than five minutes in 2001

Feb. 1, 2020

Introduction

It is hard for me to overcome the first laidoff in the year 2001, and I went to Chinese bible study and decided to baptize with my mom after a few months of Chinese bible study. I like to write down a short case study what I spoke the day I baptized in Palm Beach Christian church.

Case study

LeBron James Dedicates Heartfelt Speech To Kobe Bryant

Here is the link.

10 things I wish I have done better from 2016 to 2020

Case study: how to find 100 hours to study on Linkedin learning

Professor Shang Zhaoyang - investment analysis

上海交通大学应用数学博士。现为金融学院金融工程系教师。研究方向：非线性偏微分方程及其应用。教授课程：金融时间序列分析和金融衍生品交易

Case study: How I approach my investment research smartly?

Feb. 1, 2020

Introduction

It is my personal finance research. I like to build wealth and grow rich, I turned 53 years old in Oct. 2019, and it is so hard to work on investments since I started my personal finance research first time starting from Nov. 2018. How do I approach the research?

Case study

I joined a wechat group Shanghai Jiaotong university math in North America group, so I asked a few alumni working on finance, last Nov. I was introduced by investment analyst in Shanghai, and joined his wechat group about investment. So I found the article from this investment account.