Infinite Returns on Stock and Property Investments possible?
Posted: Fri May 13, 2011 8:48 am
Are you happy if you can make 10% returns a year?
Are you happier if you can make infinite returns? Infinite returns happen when you fully recouped your capital, yet continue to earn recurrent income on your capital...
Is infinite returns possible? Of course, if you invested a sum of Capital, then you doubled your money, then you re-invest the doubled Capital and keep doubling your money...and if in the meantime, you also receive Recurrent Income...then you are actually getting infinite returns...or imagine having a Golden Goose, laying Golden Eggs and the Golden Eggs then hatched and grew up to be Golden Goose, and then lay Golden Eggs and the process just goes on and on and on...this can be done, let me illustrate with 3 Real Life Examples.
My 2 sifus and I together bought 3 units in a condo development which has en-bloc potential, investing total S$1 million.
Recently, we sold 2 out of the 3 units and by doing so, we already MORE than fully recouped the Principal amount we invested (S$1 million). So even if en-bloc does not materialise, we will still enjoy rental income from the remaining condo unit...and if we decide to sell, we can then re-deploy the money we'll get back into other investments or to serve as Opportunity Fund...
In year 2009, I sold half of my CITIGROUP shares which I bought at US$1 at US$4, and more than recouped back my capital invested into CITIGROUP. Later I bought more CITIGROUP shares when share price dropped to about US$3...Thus, currently the 1,000 (consolidated shares) of CITIGROUP shares I hold are actually FREE (since I have fully recouped my Capital)...
So even in worst case scenario if CITIGROUP collapses, I would NOT lose any money. If the share price move up, I make even more money...
One of my sifu bought a condo from me in year 2007, putting down 30% downpayment and borrowing 70%. Now the market value has gone up another 30% and recently, he took up Equity Loan equivalent to the 30% downpayment he paid in year 2007, so he fully recouped his capital and to him, this investment becomes "NO Money Down" from now onwards...he can choose to deploy the Equity loan into different investments or to set aside for his Opportunity Fund...
These are the Joys of investing. That it is possible for you to hatch your Golden Eggs, grow them to Golden Goose, and in turn, these Golden Goose lay more Golden Eggs...and sooner or later, you reached Financial Freedom and you can choose to stop working if you want, and just live on your Golden Eggs and Golden Goose...
I've reached Financial Freedom 3 years ago in year 2008 and in the last 2 years, again DOUBLED my Wealth...
I have NO doubt that if I comply with Prudent Financial Principles, invest my money only if Upside is at least double of Downside; Put my eggs into different baskets; Position my Portfolio to be "All Weather Proof" that can withstand the Next Global Financial Crisis...then I would just get Richer and Richer over time, the only question is How much Richer, that's all.
I'm sharing this NOT to boast but hope this can Inspire and Encourage more people to start Planning and Growing your Money, so that one day you can also get to enjoy what I'm currently enjoying (Financial Freedom and the choice to do what I want).
Are you happier if you can make infinite returns? Infinite returns happen when you fully recouped your capital, yet continue to earn recurrent income on your capital...
Is infinite returns possible? Of course, if you invested a sum of Capital, then you doubled your money, then you re-invest the doubled Capital and keep doubling your money...and if in the meantime, you also receive Recurrent Income...then you are actually getting infinite returns...or imagine having a Golden Goose, laying Golden Eggs and the Golden Eggs then hatched and grew up to be Golden Goose, and then lay Golden Eggs and the process just goes on and on and on...this can be done, let me illustrate with 3 Real Life Examples.
My 2 sifus and I together bought 3 units in a condo development which has en-bloc potential, investing total S$1 million.
Recently, we sold 2 out of the 3 units and by doing so, we already MORE than fully recouped the Principal amount we invested (S$1 million). So even if en-bloc does not materialise, we will still enjoy rental income from the remaining condo unit...and if we decide to sell, we can then re-deploy the money we'll get back into other investments or to serve as Opportunity Fund...
In year 2009, I sold half of my CITIGROUP shares which I bought at US$1 at US$4, and more than recouped back my capital invested into CITIGROUP. Later I bought more CITIGROUP shares when share price dropped to about US$3...Thus, currently the 1,000 (consolidated shares) of CITIGROUP shares I hold are actually FREE (since I have fully recouped my Capital)...
So even in worst case scenario if CITIGROUP collapses, I would NOT lose any money. If the share price move up, I make even more money...
One of my sifu bought a condo from me in year 2007, putting down 30% downpayment and borrowing 70%. Now the market value has gone up another 30% and recently, he took up Equity Loan equivalent to the 30% downpayment he paid in year 2007, so he fully recouped his capital and to him, this investment becomes "NO Money Down" from now onwards...he can choose to deploy the Equity loan into different investments or to set aside for his Opportunity Fund...
These are the Joys of investing. That it is possible for you to hatch your Golden Eggs, grow them to Golden Goose, and in turn, these Golden Goose lay more Golden Eggs...and sooner or later, you reached Financial Freedom and you can choose to stop working if you want, and just live on your Golden Eggs and Golden Goose...
I've reached Financial Freedom 3 years ago in year 2008 and in the last 2 years, again DOUBLED my Wealth...
I have NO doubt that if I comply with Prudent Financial Principles, invest my money only if Upside is at least double of Downside; Put my eggs into different baskets; Position my Portfolio to be "All Weather Proof" that can withstand the Next Global Financial Crisis...then I would just get Richer and Richer over time, the only question is How much Richer, that's all.
I'm sharing this NOT to boast but hope this can Inspire and Encourage more people to start Planning and Growing your Money, so that one day you can also get to enjoy what I'm currently enjoying (Financial Freedom and the choice to do what I want).