Comments by "林子倫" (@zilun) on "Chinese Youth Borrow Wildly to Trade Stocks, Get Trapped, Cry, While Banks Tremble" video.

  1. Investing is NOT gambling. Invest in U.S. blue chips stocks and pay attention to quarter reports of companies you have stakes in. If that’s too difficult, just hold S&P500 long term. I retired 20 years ago at 1.2mil. Never worked since. I’m now at 10mil. Problem with these people is they want to get rich quick. They aren’t looking to build wealth over decades. They also just jump on to whatever “they heard” are good opportunities with little care to what’s actually going on.
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  2.  @allenl9214  Nope. It was BRK, V, MA (bought at IPO), Heinz (acquired by BRK, no longer traded), and AAPL. I held Starbucks when it showed signs of recovery from bad management. Big ones I missed out on was Google’s IPO and eBay. I try to minimize my risks, and those two had some risks when I took interests. Obviously the biggest one to miss out on was Microsoft, but I was just a kid in the 80s, I didn’t know jack about investing back then. I would have done just fine with all in S&P500, not as good but good enough.
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  3. The super wealthy. S&P’s long term average annual return is 10%. If you can get a Lombard Loan at 5%, you can get that extra 5%. However, it’s good to consider it if and only if cost of holding that loan is negligible while gain is worth the hassle. You may be asking, well, it’s 5% cost and 5% gain after cost so that 5% can’t be both significant and insignificant at the same time. Well, if you have an investment portfolio of 20mil, it’s going to fluctuate +/- 2mil, so 500k annual cost of having a 10mil Lombard Loan becomes negligible compared to your net worth’s fluctuation, but you now have an extra 10mil to snowball starting with 1mil first year, which over long term, can add more strength to your portfolio. It’s not worth the hassle if your net worth hasn’t reach that point. I’m approved for 3mil loan but I haven’t borrowed a single cent because at where I am, focusing on what I already have is still better than diverting my focus to what more can I do with what I don’t have.
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