What is 'Onigiri-man's' Investment Policy? (Things I find 'difficult about investing' 3) 91

Hello.
I am 'Onigiri-man'.
('Onigiri-man' is an uncle approaching 60, with less than three and a half years until retirement.)
Thank you for stopping by 'Onigiri-man's' post again today.

Following the previous posts No. 89 and 90, I would like to post the third installment ofThings I find 'difficult about investing'.
I hope you will join me.

11. Things I find 'difficult about investing'

11-6 1st: Continuing to invest

'Onigiri-man' believes thatcontinuing to invest is the most difficult thing.

'Onigiri-man' has two reasons for this.

When the investment funds decrease, the shock lingers, and you sink into a deep depression.
At the same time, you feel bewildered. Thinking, 'What should I do now?'...
Even though you took the courage to take the first step and start investing, if you are discouraged right from the start (assets falling/decreasing), I think it is a natural emotion to feel deeply depressed.

Perhaps those who do not feel that way are the following people, right? (laughs)
1. They think of it as 'easy money' rather than 'precious savings'.
2. They don't know it has fallen. Or they have forgotten that they invested.

Originally, one should not use 'precious savings' for investment management, and I also recognize thatfull investment (investing all available funds) is not the royal road of investing.
I believe that those who have plenty of 'surplus funds' are only a small fraction of Japanese people, known as thewealthy (those with financial assets of over 100 million yen) or theultra-wealthy (those with financial assets of over 500 million yen).

Apart from investment funds,if you don't overcome the two reasons why you cannot continue investing, even if you start, you will eventually quit.

11-7 'Onigiri-man's' mindset for continuing to invest

As I mentioned in '11-4 What are 'Onigiri-man's' investment options?',
Conclusion: I am proceeding with asset management using only 'investment trusts (index funds/active funds)'
.The reason is'because it is easy'

.In other words, I have excluded 'investments in Japanese stocks, US stocks, gold, crude oil futures, FX, etc.' from my options. The reason is'because it is difficult'.

The biggest merit of investment trusts is that professional traders handle appropriate positioning, stock selection, and timing of buying and selling in exchange for management fees.
The purchase method is also very simple; I go through Rakuten Securities (online securities), select well-known management companies, and entrust asset formation and asset management to them.
I can choose the safest and easiest method.

The only remaining trigger is'mental'.
If the 'trade-off' in the mental aspect is established, it becomes possible to continue investing for the long term, and you can feel at ease. I believe that if you can feel at ease, it becomes possible to continue investing for an even longer term. A good spiral will accelerate.

11-8 Approach to mental resolution

'Approaching the mental aspect by solving it mentally' is direct, concise, and I believe it is highly effective.
I believe that the mental aspect cannot be solved by technical methods. The more you obsess over technicalities, the more you are bound by complex rules and psychologically cornered.
I think it is a good strategy for general investors to think simply.

11-9 Investment Principle 1: Defy Your Instincts!

Even if I have unrealized losses,I make sure not to stop investing and keep watching. My
instinctto stop investing races through my mind with intense force, but I accept it and move on. Also, I consider
market dips as opportunities,and I steadily continue buying investment trusts on the dips using dollar-cost averaging. I don't buy in one go, but I steadily continue purchasing fixed amounts. I recommend thinking that buying at a low price is a good deal.In particular, the market trended downward in mid-April 2024. Each index fell sharply and weakened to the point where Onigiri-man's capital gains (unrealized profits) also dropped by about 30%.


There was no way to stop the weakening, and the market didn't even give us a chance to sell. The cause of the decline was Fed Chair Powell's remarks on inflation countermeasures, which led to increased predictions that the Federal Open Market Committee (FOMC) interest rate policy would not proceed with the number of rate cuts and the start date that the market had priced in, causing each index to trend downward. During this sluggish period, Onigiri-man continued to purchase investment trusts steadily, at the same amount as usual, about once or twice a week. By mid-May 2024, each index had returned to the levels of early April and began to shift toward an upward trend. As a result, by continuing to invest and purchase, I was able to buy a large number of units of investment trusts at a low price, and I was able to further accumulate capital gains (unrealized profits). By being able to further accumulate capital gains (unrealized profits), I have been able to gain even more peace of mind. I would like to carefully watch future market trends.

11-10 Investment Principle 2: Declines Don't Last Forever!

When the values of each index fall like they did during the Lehman Shock or the Corona Shock, I cannot endure the anxiety and fear of the decline. Also, emotionally, I think one feels that it will continue to fall forever.I can strongly understand this as well. However, every time various shocks occur in the market, it continues to hit new highs a few years later. Both the economy and the market continue to grow. This is also a fact, and it is a mysterious thing. Surely, since we desire economic growth from the bottom of our hearts, I imagine that although it takes time to recover, it will definitely make a comeback. I believe that our will swallows up economic misfortune.


In other words, 'declines don't last forever!'


That is why you should be able to continue investing, asset formation, and asset management with peace of mind. Onigiri-man believes this and will continue to invest.

11-11 Investment Principle 3: I Don't Want to Repeat Mistakes!

I try not to be too obsessed with 'always seeking returns.' Of course, emotionally,
'I just want my money to grow,'and I think it is natural to wish for enough money to FIRE right now. Without any pretense, I think almost everyone feels the same way.
1. I want you to teach me safe and solid stocks or investments for 'free.' 2. Please give me 'special information' just for me. 3. This is the stock that will definitely 'make money.'

Onigiri-man also desperately wishes to be taught the items above, but that is a difficult problem. Do products that definitely make money exist? They are 'eccentric people' who introduce products that have no risk and definitely make money. They are truly in the minority. Otherwise, it is close to a fraudulent product, and I have to say it is a 'Ponzi scheme.'

If you are looking for an asset management method that does not reduce the current principal amount, you would deposit money in city banks, regional banks, etc. I predict that bank deposits will have a sad ending in the future.The reason is that you cannot effectively use time and the compound interest effect. Even if you can protect your assets with bank deposits, isn't it difficult to build assets? Before I started investing, Onigiri-man deposited funds in ordinary deposits and time deposits at banks, as well as educational endowment insurance at life insurance companies, but as you can imagine, it was a sad ending, and I was not able to increase my financial assets at all. I deeply regret why I didn't deposit my cash assets into investment trusts, etc., knowing the 'risk' at that time.

I wish not to repeat that mistake.

11-12 Investment Principle 4: Offensive Retreat!

Successful people often say, 'Don't fret over things you can't control!' or 'It's no use regretting things you can't control!' Recently, Onigiri-man has also come to feel strongly that way. After spending nearly 35 years in salaryman life, there were various


'frustrating things, things to regret, things I can't forgive, things I want to be forgiven for'and so on. I have experienced various things such as 'unforgivable words and actions of colleagues, betrayal, behavior, and treatment.'
There were many things I couldn't control myself. That is why I think that if I live in the present while obsessing over things I cannot control, harboring grudges, and accumulating regrets, my future will be wasted. Let's just forget it! It is important to 'forget what you cannot control!'


and I also think that an offensive retreat!is necessary. Onigiri-man believes that an offensive retreat!will surely turn things around. Investing, asset formation, and asset management are the same, and I think it is beneficial to 'forget what you cannot control!'

and based on the knowledge, experience, and trials gained from that, you should make your next move.I assume that when each index falls, patiently enduring and waiting, thinking that 'a pinch is an opportunity,' and calmly continuing to purchase the investment trusts you want using dollar-cost averaging will be the 'greatest offense'in asset formation. It is an
offensive retreat!It seems like I am running away, but I am not; I think it is the best mental technique that is actually just dodging.

11-13 Investing is Not Gambling

Onigiri-man believes that 'Investing is not gambling.'In particular, Onigiri-man only purchases

'investment trusts (index funds/active funds).'I am not saying there is no risk at all, but I consider it medium risk. I am able to manage my assets relatively safely. Currently, it is an 'investment stance verification' period, so I will continue to monitor the state. I will post the results honestly on note without hiding anything.

11-14 'Point-based investing is the best!' Thank you for the peace of mind.

I, Onigiri-man, believe that point-based investing is the best.I continue to diligently engage in point-earning activities and keep investing those points.
Point-based investing provides peace of mind.
It is strange, but the more I continue with point-based investing, the more my savings of peace of mind increase as well. It gives me an incredible sense that it is protecting the personal funds I have invested.

It may just be point-based investing, but do not underestimate it.
A journey of a thousand miles begins with a single step.

It is truly a strange feeling.

Thank you once again for stopping by Onigiri-man's post today.
Your visits are my greatest encouragement.
I appreciate your continued support.