Account Size Does Matters.. Even In Punting!

At this very moment of typing this... The quadrennial event had finally ended with France taking home the World Cup and the team of France to take home $38 million in prize money.

Congratulations once again to the France and supporters of France.

The World Cup of 2018 had been a really interesting one this far and had kept me relatively occupied for a couple of weeks, despite my busy schedules. And yes, you're right. I did make a small punt this time round.




Earlier today, I made a visit to one of the Singapore Pools branches to get a ticket for France to be crowned the cup holder, with an odds of 1.4.

I'm never a fan of gambling and do not participate in such games even during joyous occasions like Chinese New Year where the majority does. However, for once today, I did something that I probably did not expect . Not to shy away from the nature of gambling, I do admit that this is not a good habit to follow. and is unlikely to continue any further with Singapore Pools. On a side note, I'm pretty surprised to see the long queue of punters in for different businesses.

How good would it be if Singapore Pools is a publicly listed company?

I've been pretty supportive of France for this year's world cup and to my pleasant surprise... The team had been making it's way north to holding the cup today.



I've been reading a little up about the games and statistics of the match and decided to hype up tonight's match a little by entering a small position with France. The position I've entered is a very risky 'investment' that puts you into a binary option, whereby it is simply based on a "Yes" or "No" proposition.

Having that said, I've written off the capital placed into this position and view this as an entertainment expenses for the night.

It is very important to know and understand yourself as this will allow you to know clearly what you are doing. 

With that in mind and some risk management in play, I decided to enter a small betting position with France taking home the World Cup today.

I've been pretty lucky tonight and this allows me to have an extra $20 in my pocket tomorrow.. LOL

This will translates to a 40% realized gain for the event that happened 2 hours ago. But taking the risk into consideration, I'm risking $50 capital for $20 gain.

Well. I guess my luck had been working well tonight and this speculative position today has paid off. Taking a sweet look back... If the bet amount is changed to $50,000. How will it looks like..?

Just a minute.

I vividly remember one golden statement from Uncle CW.

It will similarly translate to a 40% gain. But this time round, with $20,000 as profit in your pocket!!

Yes, the risk of losing $50,000 is equal to the risk of losing $50. But what does it tells?

Account Size Really Matters! Even when it comes to punting! 

Meanwhile, I guess this will mean I have 4 more Fillet-O-Fish meal and it's probably time for me to get one! :)

Young adult thinking to start on investment.. with Rolex?

Recently, over dinner, I've been brought to attention when one of my colleague express interest towards investing.

Hence, being a curious listener and a little excited, I couldn't hold myself to ask more.
This is one of my first time seeing a young person in real who's interested in this topic and having goals.

Surprisingly, another fan of Robert Kiyosaki!

Rich Dad, Poor Dad - Robert Kiyosaki

We were chatting about some daily stuff before hearing this.. a house is a liability and we need to escape the rat race. This instantly rings a bell right in my head - Rich dad, poor dad.....

"I'm interested to get some investment before my savings is eroded by inflation and is looking to buy assets"

As a curious audience.. I asked: What type of asset are you looking to get? Property?

"Nah. Property is a waste of money. It's a liability"

Another fan of Robert Kiyosaki I thought.

"...I'm looking into getting a Rolex in 2 years time. I believe that they're a really good investment and milestone. I've read from a book that we must buy asset and not liability!"
I'm stunned for a moment

Upon hearing so.. I decided that I should remain silent and continue eating my noodles.

I believe that this fella here would have read the book - Rich Dad, Poor Dad, and have understood that there is 2 column in your balance sheet - Asset & Liability.

According to the book, an asset is something that puts money into your pocket while a liability is something that takes money of out it. 

And to get rich, one simply get more 'asset'!

Applying the actual definition to an asset, indeed, Rolex is a tangible asset and it does hold it's price well over the years.  One must not forget that Rolex is a luxury consumer goods and to keep it well running, you're requireed to send it in for servicing.

Aside that, you've to keep this 'asset' of yours in a good condition in order for you to cash out your 'profit' in the future! This servicing here will cost you money and it does not put money into your pocket.

Arguably, yes. The servicing you're looking at is your 'cost', and by selling it in the future, provided at a big gain, you will not be seeing anything out of this asset apart from the ticking hands. Any knock and dings while you're wearing it, will in fact take cents out from your pocket.

Throwing all this aside. Any seniors who bought a Rolex many many years ago at $1000 or 2000. May see that the same model now cost $10,000.

We must not forget that $1000 or 2000 back then is relatively 'big' too!
Hence, your purchasing power did not change!

Similarly to some who includes the value of your HDB in the list of your 'assets'!
For the duration that you're staying in it, this HDB does not put money into your pocket!
Probably.. unless you rent a room out.
 
Not forgetting our HDBs in Singapore has only 99 years of lease!

How now!?

To my friend above, it is pretty much a milestone in some sense that you've gotten your 'first luxury watch', 'I've earned my first 5 digits in my life' or probably a terrible way to say it is 'I've spent the first 5 digits I've earned in my life'.

Perspective is important.

As a human, I do love Rolex watches and would gladly get one in the future, as a luxury good to pamper myself.

Not an 'asset' in which I have to hope and pray for the value of it to go up in order for my gains to be 'realized'.

Another thing to remember about 'realizing your gains' is that, when you sells it in the future, this is marked as a pre-owned product, and the market here is different.

There's definietly some rare or limited Rolexes that will probably be a really good investment in due time.

As time is a very important factor in investing, there is no certainty in investment.
I know there's many who believes that Rolex is an investment.

I'm not an watch expert here.
But a Rolex to me. Is merely a watch.
As a person who love watches, I do have my weak spots too.
But, for now. A Rolex is definietly not for me :)

Nonetheless, if I happen to have one, I'm clear on what I expect from my Rolex.