https://www.turtleinvestor.net/mari-invest-negative-returns/
turtle wrote a good piece
most important is the table of the returns distribution
2.6% of the time the fund loses money
12.4% of the time the fund is flat
85% of the time the fund is up
what are savings accounts at banks?
it is the bank accepting the above returns distribution
paying you a fixed % because you are humji
and pocketing the difference as their profit
or if you are a fancy pro investor
net interest margin
most retail bank products are basically this
you want a 1 year FD with a bank?
DBS offers 3.2%, because 1 year SGS is 3.45%
you want a 6 mth FD with a bank?
ICBC offers 3.35%
RHB and SCB 3.2%
UOB and OCBC 2.9%
why? because 6 mth SGS is 3.75%
check yourself
https://eservices.mas.gov.sg/statistics/fdanet/BenchmarkPricesAndYields.aspx
actually, bad examples because FDs are stupid and banks suck
but just an example to show that ppl okay with volatility can sell stability to suckers at a profit
there is nothing wrong to want stability
just know that you WILL pay $$$$$ for it
maybe embrace that life is not a straight up only line
it is unnatural and weird to be a straight up only line
you do not need investments that go up in a straight line
you just need to be a better investor that is not humji when prices go down temporarily
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