Chapter 81 [Letter from students asking questions]

Source:https://www.facebook.com/100063294665283/posts/731618205624662/

[James’ origin and today] Chapter 81 - [Letter from students asking questions] (11/09/2023)

"Hi James,

Thank you for your reply.

"That is assuming that you happen to buy at the highest point in 2007. If you buy at the lowest point in 2009, the annualized return can reach 20%. The level of annualized return depends on fate! Investors in 2007, the end of 2021 and the beginning of 2022 will have a little worse life. Those who start investing at the end of 2009 and now will have a better life. First fate, second luck, and third self."

This sentence is really well written. Do you think 2023 will be the same as 2009?

Acknowledgments. 』

Hello, thank you for your letter:

If you calculate buying at the high point in 2000, 40 years later, and buying at the low point in 2009, also 40 years later, the annualized return should actually only differ by at most 1%.

If a person invested $1 at the high point in 2000, and it reached 45 times 40 years later, it would become $45, with an annualized return of 10%.

If you buy at a low point, you will get double the return, up to 90 times, and the annualized return is 11.9%.

There is a difference, but not too much. This difference is life!

First life and second destiny are beyond our control. Three, you can go in the right direction as soon as possible.

James

"Hi James,

Thank you so much for your wise words.

I know that many people have shared their lives with you. You have connected with all sentient beings in the long history of each person, and you can be regarded as a Buddha-connected person. But when I received your letter and read the advice, the joy in my heart was indeed different.

I typed a paragraph and then deleted it after thinking about it. Everyone has his own destiny in life, but it is not too late to realize it now. There is still enough time to compound interest to retain a little hope for the future. If it is successful in the next twenty years, I will tell my children about this hope.

Many people watch your videos over and over again and keep taking notes. I am also grateful to an elder sister who encouraged me to watch your videos. I am also grateful to her.

First life and second destiny are beyond our control. Three, you can go in the right direction as soon as possible.

I hope that everyone’s life will be better.

Actually, I probably have another question. Many people are guessing that you live in hotels all year round and don’t live at home all year round. But this is because many people are concerned about your life.

What I want to ask is, did you also start buying individual stocks in the 1990s when capital was insufficient?

Acknowledgments.

Joseph』

Hello

Thank you for your reply and caring about my life. In fact, I don’t always stay in hotels. I have a home in the United States and my life is peaceful. The only time I go back to Taiwan to take care of my parents is that I go back to the hotel at night and go home to take care of my parents during the day. This is why I always stay in hotels when I return to Taiwan.

I don’t know if you have seen the following video. This is why I now only invest in indices and do not recommend individual stocks.

Watch "[00212] The three most important issues in CLEC investment; you will get richer without operating; investment is to invest in the future; the value of the company is the products and services, not the stock price; ZOOM's financial report; you will get richer without buying a house June 4, 2021 CLEC Investment and Financial Education Academy"

[https://youtu.be/alRyVd4K9H4](https://l.facebook.com/l.php?

u=https%3A%2F%2Fyoutu.be%2FalRyVd4K9H4%3Ffbclid%3DIwZXh0bgNhZW0CMTAAYnJpZBExYW5yY0NJSjlBTGppU1EzR3NydGMGYXBwX2lkEDIyMjAzOTE3ODgyMDA4OTIAAR596s0rsy97cz2LCtzQukdNF4x3QIFAfZAKPzz6wiLOdpJepdZqtqQPiuixZQ_aem_LwnXYAPTEYaWdJoL_b38pA&h=AT0B-ubUEKqpDR9rZ9mxc2-jB1vUJpZMEFqUl6k6pHS2HOkZ51LO3YPQs4BQnP3XG3XdJLnuGDmcmt2I7c3RsIb7AZYKNc6OBBByVT1zXdL7T2CysMCtgBWUsr10PRvzrrC-Oy2jLcmSvA_f&tn=-UK-R&c%5b0%5d=AT1Dqp5IAuShBm_w_rdKZl554augfGMqxkMvthwW-vtHVNY00oCOWBcjwS978M8mlAFG8iLs9001u2HsC9oj8B4lgreElka8tUfblzrNltus7WOecprQ5gjMj_vhQQareWtIXumLBjztUwT88voJNGqDbMjw_d8y0TMIp1iZMnPCY6SmpLRmQicO6z1Hsw)

It is because I have only invested in individual stocks since the beginning of my investment in the United States, and I have made money. However, because investment in individual stocks has relatively large fluctuations, I will buy and sell, which has caused us to pay a lot of taxes in the United States. Moreover, I bought many individual stocks such as Starbucks, Apple, Amazon, and other good stocks. As long as I bought them, I would not sell them. I said that if I did not operate, my current assets should be more than 10 times more than the real assets. This made me realize that whether you invest in individual stocks or indexes, the most important thing is to never sell.

The more important reason why I don’t recommend investing in individual stocks is that the fluctuations of individual stocks can be very large, and can even drop 90% from a high point. For example, I gave an example of Amazon, which fell from $96 to only $6 in 2000. This is not something ordinary people can get rich by holding on to a good stock, because the market fluctuations make it impossible for you to hold on, but index funds You can hold on even if the short position comes and the market falls, you know that sooner or later he will come back to hit new highs. This is the range that everyone should be able to bear, and you are not afraid of the index fund falling to zero. Therefore, getting rich, whether it is individual stocks or indexes, does not rely on operations. Getting rich depends on not operating, but on buying and not selling. This is the key to getting rich.

If you choose the wrong individual stocks and you put heavy pressure on them, you will go bankrupt. If you buy individual stocks diversified, there will not be much difference from the performance of the index. So summarizing the above process and my experience, I will insist on introducing everyone to the simplest way to get rich, which is

• [Understand risks, understand risks, control risks, keep cash, have emergency reserves, buy index funds when you have money, buy at any time, don't sell. 】