Recently I was reading Naked Economics, authored by Charles Wheelan. On page 202, the author shared the below quote that got me thinking how spending can be measured from a time perspective. “Making money takes time, so when we shop, we’re really spending time. The real cost of living isn’t measured in dollars and cents […]
When Math and Emotion Collide
In my previous Discount Rate is not Markup Rate post, I explained how the mark-up rate is always higher than the discount rate. This point is crucial when it comes to investing. Say a stock price has dropped in value from RM10 to RM5. If you were to purchase the stock at RM5, it simply […]
Moratorium: Everything I’m Annoyed About It
Good and bad is relative. Since the future is unknown, no one knows how this moratorium will affect us. If I lose my income in these coming months, then this moratorium can be a blessing. However, if I manage to sustain my income, then I may have the “opportunity” to save money but will there […]
Diversification: It Is Not A Competition
My Investment Analysis lecturer always repeats the following mantra. “When you speak about investment, concentrate more on risk and less on return.” The common mistake we tend to do is to seek for investment instruments with the highest return. We then proceed to invest in them without taking any consideration of the purpose or risk […]
My Thoughts During House Arrest
It’s Movement Control Order (MCO) but it certainly feels like a house arrest, especially during the weekend. The furthest I can travel in a day is from my room to the kitchen. Most of my time is spent in my room, either facing the walls or my room fan. The longer I stare at them, […]
Stockdale Paradox: Realist vs Optimist vs Pessimist
The law of karma is the law of cause and effect. Effect is determined by the nature of the cause. So the result of action is determined by the nature of action. Action is only an extension to the thought processes of the mind. Therefore action is determined by the nature of your thought. The […]
How Significant is a 1% Difference in the Long Run?
Between one percent and ten percent gain, almost all of us will prefer a higher percentage gain in the shortest time possible. We are just tuned that way, always finding ways to cut corners. Just compare the following statements or headlines. Which one will entice your attention the most? a. Lose 10% body weight in […]
Gold Price Rises When There Is Blood In The Streets
So, the new year or the new decade started with a bang! On January 3rd, 2020, U.S. conducted a drone strike near Baghdad International Airport killing Qasem Soleimani, commander of Iranian Revolutionary Guards’ Quds Forces. Six days after, the tension between the US and Iran continues to rise, threatening a full-blown war between both nations. […]
Interest Rate: It Is In Your Interest To Know It
Not sure about you guys, but when I was growing up during my schooling days, I hardly hear my parents discussing the stock market. Occasionally they do speak about the property market but most of the time, it was either a conversation on fixed deposit (FD) or Employees Provident Fund (EPF). Now in my mid-30s, […]
Loss Aversion: The Emotional Impact Is Real
11th November 2019, around 2.10 AM Malaysia Time zone. It’s the 77th minute of the game. Liverpool FC (LFC) was leading by 3 goals but Manchester City (City) managed to sneak a goal in. For City to equalize they need to score extra two goals in the next 13 minutes plus stoppage time. Based on […]