I Lost NT$850,000 and Still Smiled: After My Mindset Changed, I Chose Stocks Over Property

Letter:

I want to share with you with a grateful heart. Although the story is long, I still want to say it.

Thank you, teacher.

I entered the stock market before COVID-19 in 2020, but unfortunately, soon after I bought in, the market fell. Because my understanding was not enough at the time, I gave up on the stock market. But I still wanted to invest, and my family also held property, so after failing in the stock market, I kept saving money.

In October 2021, I had saved NT$800,000 and bought the first investment property of my life. It was an old apartment, and I bought it to collect rent.

Two years later, I borrowed another sum of money and bought another property together with my girlfriend to keep collecting rent. After another year, I still had some money on hand, so I bought a presale home.

But the good times did not last. Half a year after I bought the presale home, the government introduced property-cooling measures and loan restrictions. My girlfriend and I now held two properties and one presale home. In fact, the properties had gone up in price, and based on how I saw things at the time, the return looked pretty good.

I became inflated and started spending money on overseas travel. As a result, the money I should have used to repay credit loans and buy property was all spent. As the presale home delivery date got closer and monthly repayments kept increasing, the pressure became very heavy.

Later, I chatted with my older brother. He shared his investment method with me, which came from watching James's channel, and told me to improve my understanding. I studied seriously for about one to two months. While learning, I constantly felt chills on my scalp, as if I had entered a completely new world.

Because of the loan restrictions, the cost of holding my second property would be very high, so I must sell the first property. The profit from that sale has to be used to pay the remaining amount on the second property. Since the money I borrowed has not yet been fully repaid, I must clear the debt before delivery, so the pressure is very heavy.

This October, my first apartment will reach five years, and I will be able to sell it.

For the presale home, I have already paid about NT$850,000. It may be delivered at the end of next year or in early 2028. During this period, I would still need to raise about NT$1.4 million for the final payment and decoration.

But after discovering your channel, I made another decision. I decided to give up the NT$850,000 I had paid, directly breach the contract with the developer, and after selling my first property, invest all of the profit into the stock market in one lump sum.

Because I no longer need to raise money to repay borrowed funds, the amount I can continue buying every month will be higher. I estimate that the presale home could earn NT$4.5 million seven years later, after waiting five years after delivery to reduce taxes. But if I give up the NT$850,000 now, I believe that seven years later my profit will definitely be three to five times that NT$4.5 million.

Most people would feel very sad about losing NT$850,000, but after I made this decision, I was extremely happy. My girlfriend said it was the first time she had seen someone lose money and be so happy.

The same thing can be heaven or hell. In fact, we have always been in heaven. It only depends on whether you have discovered it.

I have good parents who provide me with a place to live. Recently they also lent me NT$1.8 million. After my understanding became sufficient, I did not hesitate and invested NT$1.35 million in one lump sum.

I have a good older brother who shared so many investment concepts and ideas about capitalism, helping me break out of a laborer's mindset. My brother is truly a benefactor and a good teacher in my life.

Most importantly, you are my teacher's teacher. Thank you for your selfless sharing, which helped me break through my thinking and keep moving forward. I do not want to wait until after I make money to thank you, because making money is certain. I want to immediately share this joy and gratitude with you, James.

Thank you very much. Wishing you peace, smooth days, and good health.

James

James's Reply

I am very glad to receive your sharing. Seeing that you were able to improve your understanding through learning and decisively make the decision that is most powerful for your long-term finances makes me very comforted.

The essence of investing is indeed the monetization of understanding. Once you break away from traditional thinking and clearly see the logic of capitalism, short-term losses or sacrifices, such as the penalty on a presale home, are often only tiny costs in front of long-term compound growth.

The fact that you can have this realization and feel happy shows that you have truly grasped the heart of investing and are no longer trapped by emotions and numbers.

Being wealthy is a gift. As long as you walk in the right direction, wealth naturally comes. Buying property and buying the wrong targets are walking in the wrong direction. The longer time passes, the poorer you become.

Happiness is a human right. When we know that we have won a NT$50 billion lottery ticket, we know we are wealthy. What comes next is to live happily every day. Life is simple, convenient, and effective. The attitude toward life is: it does not matter, anything is fine, it is okay.

I am also very happy to hear that your family and older brother can be supporters and benefactors on your investment path. With enough understanding, the right tools, and the right mindset, time will prove that your current decision is correct.

Thank you for your gratitude and blessings. I also wish you continued progress, peace, and smooth days on the road of investing and life.

Best regards, James

Disclaimer

All email content, video content, and replies are for reference only. I am not a professional investment advisor, nor am I a professional tax specialist. All information is only a sharing of personal experience. Please invest cautiously. You are responsible for your own investments, decisions, and actions.

Written by James.