If you want success, figure out the price, then pay it

I want to gain financial freedom thorough investing. The price is to create a system to turn over enough rocks, and to have discipline in investing correctly and consistently.

By saving and investing over the past 8 years, I’ve accumulated about S$250,000 in cash and stocks. The first milestone I am working towards is S$500,000 followed by S$1,000,000.

To get to S$500,000 in the perfect world, I would need 3 years.  In 2021 by the age of 35, compounding my investments at a 25% rate and adding all the cash savings accumulated should get me there with some buffer. From S$500,000 to S$1 million, with the same rate of compounding, it would take me another 3 years and theoretically get there by the age of 38 in 2024.

I know I sound naive. It took me 8 years to get to S$250,000 and I expect to get another S$250,000 in less than half the time. Oh and 25% compounded annual returns? Wow, I must think I’m better than Warren Buffett. It is a tall order and to achieve this would, in my definition, be success. I know the price of that success and that is why I need to pay the price. Today will be the day I throw guesswork out of the window and really work consistently on the system to get myself where I need to be – Financial freedom through investing. This will be my very own experiment which I need to track and ensure its success.

Let me lay out everything first as a form of record keeping and for accountability purposes and I’ll get up and running.

  1. Most of my investments are held under Interactive Brokers (“IB“) so my performance recorded on IB since creating it about 3 years ago in April 2016 is a pretty good proxy of my investment returns. I love IB for a variety of reasons but especially for the fact that it can easily generate reports of my overall portfolio returns in a single click unlike other brokerages. I can now know exactly how good or lousy as an investor any time without guesswork. Happily, so far, from the time I created my IB account, I fared pretty well vs the benchmark. I’ve included the screenshots of my performance as extracted from IB below for reference. Fortunately, my compounded investment performance over the past 3 years was been decent at about 28.6%. I know for sure it will be hard, if not next to impossible to maintain that kind of returns, which makes it even more urgent for me to get serious about having an investment system in place.

    1 Apr 2016 – 31 Dec 2016

    1 Apr 2016 - 31 Dec 2016

    1 Jan 2017 – 31 Dec 2017
    1 Jan 17 - 31 Dec 17

    1 Jan 2018 – 31 Jan 2018
    1 Jan 18 - 31 Dec 18
    1 Jan 2019 – 12 Mar 2019
    1 Jan 19 - 12 Mar 19

  2. I’ll be transparent about the names of the stocks I have in my IB portfolio, for accountability purposes and in one single view, provide ease of reference of my holdings at a point in time. You can visit the link to my portfolio here: https://leithstreetblog.wordpress.com/myportfolio