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Monday, January 17, 2022

Why Saving Rate is the Most Important Factor to Building Wealth

I always thought that to become wealthy, you will need to invest. Furthermore, the annual returns from your portfolio determine how much wealth you can build. But I realize something more important than performing great in the investment world. This does not require knowledge about the financial world, but it is more of a character and discipline. Yes, it is indeed true that investment return is essential to building wealth.

Nevertheless, this primary method is the most crucial factor in successful investing. Do you want to know what it is? Your discipline and determination of how much you are willing to save up each month from your income is the most important factor in becoming wealthy. This article will talk about why the saving rate is the most critical factor to building wealth. I will also talk about how the saving rate is why I can become wealthy today.

Friday, January 7, 2022

My Idol, Charlie Munger, boosts Alibaba's stake, purchases another 300K shares

This is exciting news to talk about. One of my idol investors, Charlie Munger, raised its holding by 99.3% to 602,060 sponsored American Depository Shares of Alibaba Group (Ticker: BABA) as of December 2021. He bought an additional 300,000 shares. It seems he is a huge fan of Alibaba. In this article, I will talk about his investment move when many investors are fleeing the scene. Moreover, I'm going to give my opinion on his investment purchase on Alibaba Group. As you readers know, I am heavily invested in Alibaba and planning to keep my position despite my loss.

Monday, January 3, 2022

Why I'm Going to Keep Holding Alibaba Stock

Readers following my blog know that I'm heavily invested in Alibaba stock. Since my purchase date, my Alibaba shares have been going down tremendously. Alibaba has been stuck in a perfect storm of misunderstood Chinese regulatory moves, the threat of delisting by US regulators, a slowing macroeconomic growth, a building property sector crisis, severe pandemic comps, and intense competition.
 
From my average cost, my Alibaba position has an unrealized loss of 44% (January 2022) which is approximately $315,000 of my capital. However, I'm not discouraged about my investment and keep holding my shares for a long-term play. I'm going to keep purchasing more Alibaba shares with the dividends I will receive from Pfizer Inc. (Ticker: PFE) and my rental income.
 
Yes, it's true that if I had stuck with my previous portfolio, my stock portfolio would have $1,350,000. That's approximately $350,000 difference. I learned my lesson that sometimes it's better to be diversified. Luckily, I'm not using options that have an expiry date for holding a particular stock. So even if my stock portfolio is doing poorly at the moment, I know I still can make money in the long run. In this article, I will explain why I'm going to keep holding to my Alibaba stock and why I think the fallen price is an excellent opportunity to purchase more shares of Alibaba stock.