There is one popular investment guru and columnist who’s a known hardcore active stock market trader and totally hates the cost-averaging method of investing. One guy posted a comment on the guru’s Twitter account saying that “Cost Averaging” is an effective strategy than having no strategy at all. The popular guru replied, “Doing bad is better than doing nothing at all?”
That’s how he hates “laziness”. That’s how he hates passive investing using the cost averaging method.
Before we talk further about laziness, let us read first the blog post of our fellow personal finance and investment advocate Fitz Villafuerte on How To Do Cost Averaging – Passive Stock Market Investing to understand this strategy further.
Personally, I’ve seen and experienced how effective the cost-averaging strategy is. I don’t need to look into my portfolio every hour or every day. What I do is just save and invest a fixed (small) amount once a month from my salary. I don’t care if the market is up or down. The most important thing is the discipline that I instilled upon myself for this “lazy” monthly habit. You see, it’s okay to be “lazy” as long as you are earning and gaining something out of your laziness.
Some friends who are expert active traders have criticized my strategy and even urged me to study technical analysis of stock market investing and not just rely on passive investing.
First and foremost, I don’t have the luxury of time to learn to “time the market”. Second, I couldn’t even find time to enroll for my distance graduate program! I wanted to study online and become a certified fraud examiner but I couldn’t! I couldn’t even find time to play basketball these days! Do you get me experts? You know why?
Because I’m “lazy”!!!
I only want to spend less than 5 minutes every month just buying my choice of the best companies in the Philippines. I have been doing this successfully for two years and will continue to do so until I reach my retirement age. And when the market is up at the time when I reach 65, that’s the only time I will sell most of my stocks.
It’s not that I don’t want to learn new things. I always want to learn, and I want to learn more. But I also don’t want to risk my family’s future by using the market-timing strategy that even most seasoned investors and traders have used and eventually lost all their money. (Read this: http://wallstreetwarzone.com/the-more-you-trade-the-less-you-earn/)
How will I predict future market price movements? Am I a God? I’m applying the passive way of investing because it’s the safest and surest way to make millions when I get older. With shining bald head and wrinkled face.
It’s way, way better than leaving my money in my savings and time deposit accounts and be beaten up black and blue by inflation and limited insurance.
(Read again Fitz’ How To Do Cost Averaging – Passive Stock Market Investing to know how your Php5,000 worth of stocks a month can make you a multi-millionaire upon your retirement age.)
For now, I would rather spend more time with my wife and child. I don’t want to miss the toddler years of my daughter. I will dance the Gangnam Style with her. I will draw with her. We will play football and wallball in the living room and break more of Mommy’s decors.
I will chat more with my wife about her favorite Koreanovelas and Hallmark movies. We will talk more about food, healthy food that is. We will talk about our dream tapsilogan* business (healthy ba yan???!!!) and how to make that dream come true in the near future. We will talk about the beauty and the promising future of the Philippines. I will fix the good things that I broke. I will write songs for her. And I will make more lovely stories with her until we grow old.
I will sing “Can You Feel The Love Tonight” and the “Grown Up Christmas List” with them and be richer with their love and happiness.
But I’ll leave the Korean songs to both of them.
That’s how “lazy” I am.
*tapsilogan – a restaurant that sells meals with a trio of fried rice, seasoned fried meat, fried egg, with appetizers on the side.
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