Was late for class today, as i had to wait for my "best friend" who promised to meet me 15 mins before the class at City Hall MRT. Not sure why he was late, but am sure we was dressed very "student-like".... ahhahahaa... The trainer was very experienced; he was able to make seemingly complex formulas into simple visual models which are easy to recognise and remember.
The topics covered were very interesting although i have came across them many moons ago (when i started dealing with wealth products). It re-enforced my understanding and better my foundation in financial planning. There was a message which struck me and created a great impression on me of taking risks: "Risks are something you can reduce and manage, but can never be eliminated".
In our construction of an investment portfolio, we can reduce and manage risks by diversifying investments into various markets with different investment instruments but when a systematic risk strikes (e.g. natural disaster, SARS outbreak, terrorism, etc), we will not be able to avoid being hurt, one way or another (directly or indirectly). So the point is this: make good money during the "good times" through better investment risk management so that you can better hedge your position during "bad times" (period of systematic risks). If not, you will not make money during "good times" and prepare to lose big bucks during "bad times".
During the course, the trainer also mentioned the need to understand the difference between "Good Debt & Bad Debt" which i had discussed in my earlier posts. From the time of birth, WE are already a DEBT to our parents. While Good Debt can creates wealth, Bad Debt creates nothing but anxiety. Hence, by choices we make everyday, we can snowball to becoming a Good Debt or Bad Debt. So, what's your choice?
Here's my portfolio for the week:
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