Lim Boon Chuan – Singapore.TO

Blog of Lim Boon Chuan

Zen in Investment

December4

Investments is about earning money. The more the merrier, but I do think that there is a limit of how much is too much. The more the merrier may not be the best approach. If you are putting in a million dollars or a hundred million in investments, you win and win and you tend to put in a hundred million or one billion. The sums are exponential. The figures become just a figure and not real substantive money. This is when losses can easily pile up. When you feel that money is no longer money.

I have been to postgraduate courses where the professors are telling me that greed is good. The greedier the better. Honestly what I am thinking is, if it is really that good, they don’t even need to be professors but can be well retired and enjoying life instead of earning that pittance $300k a year salary. I do think that it is extremely necessary to curtail your investments and your greed. For instance, if you put in a hundred million each time and you win each time, still keep to the hundred million. When you lose, you lose only one time of the hundred million. If you keep growing your investment exponentially, you may lose exponentially. To be frank that happened to me, and I had thought that where investments is concerned, I am very careful. It is not to say that you should not take bigger positions just that maybe instead of exponentially increase it to a billion, try to increase to say 200 million and slowly to 300 million etc. Always keep in mind that paper wins and losses are nothing. Profits have to be realized to be known as profits. Also have a feel for the ground. I think that is the Zen of Investment, learnt from tons of experiences, failures and successes alike. Never be too greedy, that is a time to stop and rest and look at where you are, who you are and to smell the flowers and look at the morning dew.

Zen

Zen