His risk is too concentrated....

Nowadays with internet, we can invest way wider and further. Our portfolio should be very diversified and spread the risk, like :

1. Different industry and sector (financial, tech, food, infrastructure, property, etc)
2. Different instrument (shares, ETF, bonds, money market, precious metal, mutual funds, etc)
3. Different geography (countries, hence forex)
4. Different capitalization (small, medium and large companies)
5. Different aggressiveness (growth, income, low yield, value)

I always think that we should have a balanced portfolio. Even for retiree, it may not necessarily be a good thing to invest everything in low risk low return investment. Like 100% in FD. Because even FD has its risk. What if RM FD return becomes like USD interest rates (close to zero) ? We used to have FD rates close to 8% in late 1990s. But it has decreased so much since. Even now, RM FD is getting close to zero real returns (ie after inflation). Also, if we only have RM FD, what if one day malaysia becomes Greece or Venezuela ? So it is always good to spread the risk and have a balanced portfolio

I have gone through a few rounds of crashes. 1987, 1994, 1998, 2008.

Since 2008, there is no serious crash. That is when most of the youngsters born in 80s and 90s started to invest. And they never been through the plight of a crash. Some talked very big like investment guru  So much confidence backed with numbers, charts and theories....

Until they experience their first crash, then I am sure they will learn what is risk and returns.

Same thing happened to Greece and Venezuela. Before the crisis, nobody would have thought the country would go bankrupt. There were 101 theories to back up stability of the economy. But you can see what happened to them now...

And look at Gary’s friend who only invest in Aussie banks. A big chunk of portfolio was gone

Diversification is the universally accepted practice to mitigate investment risk. Because there is no certainty in investment world. Anything could happen. And usually they catch you by surprise. By that time, it would be too late for you to do anything.

I have invested in property since ~30 years ago. To the contrary, the property price has gone up tremendously. Maybe I have better luck ? 

May I ask what has my credibility got to do here ? In a forum, my point of view is more important than credibility. If it makes sense, that is the thing a reader can take away. If my point of view doesn’t make sense, even if I am the most credible person in the world, how would you benefit from it ?

Sorry I cannot remember, did I said something bad about you previously ? Just curious....
Bank of Australia ? Never heard of it

You must be talking about Commonwealth Bank of Australia 

Gary was telling you a real life story. His good friend loss million of dollar by holding substantial shareholdings in banking sector during the financial crisis.

My main holdings are in asx and us. I have nothing in malaysia.

I don’t understand what are you trying to get to....are you trying to prove his friend did the wrong thing by selling the shares ?
Diversification is trying to address the issue of “what if something goes wrong”

Even if a country’s economy is extremely sound, there are also benefits to diversify to other countries.

Just look at the thread in this forum. There are SGX, ASX, US stock, ETFs etc. Forummers here do diversify. They don’t put all their eggs in one basket.

However, if you feel that your investment objective is to invest in only Malaysia, that is entirely up to you. Nobody here can stop you. Everybody has his own choice and preference.

Yes, I have a lot of free time. I am an unker close to 60 years old....

I thought you know me well enough if you have followed closely those BBB DDD thread in Kopitiam ? BTW you know the rules here is not like in kopitiam forum right ?

Oh...appreciate it if you won’t engage with me. Seems that you forgot that just a few hours ago, you are the one who initiate it. I did nothing and suddenly out of nowhere, I got some weird opinion on my personality 
“Humble” ? “ur trying push this holier than thou attitude...” ?

Bro, since when is my post so imposing ? I did not point a gun at your head to accept my view. I am just sharing my view and experience. I never claim my view is gospel. If you feel my writing is not humble until it is offending you, you can always choose not to read 

There is an ignore button down there if you press my username FYI. If you really hate what I said, feel free to press the button. I also don’t want you in the future suddenly appear in a thread to accuse me I have “no credibility”, “not humble” etc

Make sure you press the button.....Goodbye !

Thanks bro for the wishing....appreciate it...

I can’t help but to do a search on your posting....hope you don’t mind me asking here....

Do you still feel when reading forummers’ post here, inadvertently you relate the post is directing to you in a negative manner ? It seems that you said so in this thread
https://forum.lowyat.net/topic/4600862/+300 Starting from post #308

You may be too sensitive, bro....

Bro, not asking about the second sentence. But your first sentence....

Forgive me because I am more kuailow style very direct one....can I ask you a few question ? if you don’t want to answer, it’s ok.....

1. Do you sometimes think that others are trying to insult you ? You may hear a person say one thing, but you think that they mean something else ?

2. Do you sometimes think that certain people are trying to make you look bad to others ? You may react by getting angry or attacking them back ? You may also believe that your reputation is being threatened ?

3. You sometimes think other people will harm, trick, or take advantage of you ?

4. You often hold grudges against people who you believe have done something bad to you. You believe that the actions were done to hurt you, and you cannot forgive the people who did them. You may see people as your enemies, and want to get back at them.

As said, just ignore me if you don’t feel like answering. No offense ya....

Ok bro....I got all your answer for Q1, 2, 3 and 4

If you want to know more, shoot me a pm.....I may able able to help...this is a sincere offer, not trolling...

Good luck, bro !

Good question, which many non-financial savvy people will ask.

My way of calculation is not to touch the principal. Then :

1. Determine the amount needed for your own retirement budget
3. Determine which rate of return you can generate
4. Work backward to get the required amount

Eg.

1. Monthly expenses is RM8k, so yearly is RM96k. Let's round up to RM100k per year
2. Let's say a person is comfortable to make 5% pa net of tax and expenses from investment vehicle of his choice
3. Therefore, the amount of nest egg required will be RM100k / 5% = RM2m 

With principal untouched, then the retiree will have no pressure to live to any age. Many retirees eat into the nest egg to live, which makes him the longer he live, the more  worries he will finish up his money

"Pull the trigger" implies big sporadic bets either in stocks or property etc? Not neccasarily have to "pull the trigger" .... slow and steady over the years of saving and investing can work too..

so what u trying to say by travelling,
u have higher chances to get the job and more sound decision making related to investment?