Try this puzzle:
http://www.tankinlian.com/amazing/index.html
Do you want to know the secret behind the Amazing Numbers? Send an e-mail to me. If you know the secret, you can make the cards (using the numbers from my website) and amaze your friends!
Sunday, March 30, 2008
Walk half of the distance
You are in a large hall. There is a pretty girl at the other end of the hall. You are old that it takes 10 seconds to walk half of the distance to the girl, another 10 seconds to walk half of the remaining distance, another 10 seconds to walk half of the remaining distance, and so on. How long will it take you to reach the girl?
Most people will say that you will never reach the girl. No matter where you are, it will take 10 seconds to walk half of the remaining distance.
What is the practical answer?
Most people will say that you will never reach the girl. No matter where you are, it will take 10 seconds to walk half of the remaining distance.
What is the practical answer?
Asset Allocation
Dear Mr. Tan,
I read a comment in the blog from someone who said that a long term investor should look at asset allocation, which accounts for most of the yield. Can you explain this concept?
REPLY
Asset allocation means choosing the class of assets to invest in. The main classes are:
a) Equity
b) Bonds
c) Property
d) Cash
Within each class, there are sub-classes to choose from, e.g. different markets or sectors.
If you are focusing on asset allocation, you are giving less emphasis on stock selection, i.e. choosing the specific shares or bonds within the sub-class. You can invest in a fund that is invested in many shares or bonds within the sub-class. This is called diversification.
For a long term investor, the yield on equity is higher than bonds. I advice long term investors to invest in equities and ride out the volatility, i.e. average out the good and bad years.
Read this FAQ to get some information about the long term yield on various asset classes:
http://www.tankinlian.com/faq/savings.html
For my long term investments, I prefer to invest in Singapore equities, e.g STI ETF or in global equities, e.g. S&P 500. The S&P 500 are the largest US companies, which have global operations. I prefer indexed funds, as they have low charges.
I read a comment in the blog from someone who said that a long term investor should look at asset allocation, which accounts for most of the yield. Can you explain this concept?
REPLY
Asset allocation means choosing the class of assets to invest in. The main classes are:
a) Equity
b) Bonds
c) Property
d) Cash
Within each class, there are sub-classes to choose from, e.g. different markets or sectors.
If you are focusing on asset allocation, you are giving less emphasis on stock selection, i.e. choosing the specific shares or bonds within the sub-class. You can invest in a fund that is invested in many shares or bonds within the sub-class. This is called diversification.
For a long term investor, the yield on equity is higher than bonds. I advice long term investors to invest in equities and ride out the volatility, i.e. average out the good and bad years.
Read this FAQ to get some information about the long term yield on various asset classes:
http://www.tankinlian.com/faq/savings.html
For my long term investments, I prefer to invest in Singapore equities, e.g STI ETF or in global equities, e.g. S&P 500. The S&P 500 are the largest US companies, which have global operations. I prefer indexed funds, as they have low charges.
Investing at a low level
Hi Mr. Tan,
I read your comment about two weeks ago, when someone asked you if it is all safe to invest in the stockmarket. You said that for a long term investor, the market represents good value as it is 30% below its recent peak.
I decided to take the plunge and invest my cash at that level over a few days. My investments have shown an appreciation of over 5%. Thank you for your good advice.
REPLY
Congratulations on making a good investment decision. The market is still quite uncertain and volatile, so you should be prepared in case there are some negative surprises over the next few weeks.
Do not be worried about the volatility, provided that you are well diversified. I hope that you have invested in a low cost, diversified fund, such as the STI ETF. If you are investing for the long term, you will ride over the current downturn.
I read your comment about two weeks ago, when someone asked you if it is all safe to invest in the stockmarket. You said that for a long term investor, the market represents good value as it is 30% below its recent peak.
I decided to take the plunge and invest my cash at that level over a few days. My investments have shown an appreciation of over 5%. Thank you for your good advice.
REPLY
Congratulations on making a good investment decision. The market is still quite uncertain and volatile, so you should be prepared in case there are some negative surprises over the next few weeks.
Do not be worried about the volatility, provided that you are well diversified. I hope that you have invested in a low cost, diversified fund, such as the STI ETF. If you are investing for the long term, you will ride over the current downturn.
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