Why I created this blog?

I created this blog to measure my own progress, show ordinary people with limited resource how to build wealth and publish a tractable investment record.

1. Measure my own progress.

I take investing seriously. As pursuing any other serious matters, I don't want to kid myself. Since 2003, I began writing a review every 6 months against my stated financial goals. I have been keeping my records private. By putting my records under public scrutiny, I want to be more honest with myself. After all, there are more eyes to find inconsistencies in my thought process and more mouths to tell me these inconsistencies. I welcome my viewers to comment on my investment and my investment process. You can either leave a comment for everyone to see or email me directly.

2. Show ordinary people with limited resource how to build wealth.

I am disappointed at the financial service industry as a whole. After the massive bailout by tax payer's money, I found the industry little changed. However, a lot of people feel trapped since they find no alternatives. I believe at least for the asset management need, ordinary people with limited means have other options.

I came to US in 1998 with $1000 borrowed. While still in school, I paid back the $1000 and saved $10, 000. In June 2001, I began my first full time job with a annual salary of $50, 000. In November, a car accident wiped out all my savings and some. I never had a high paying wall street job and I only invested part time. I never had anything an ordinary American won't have access to. And I paid $7, 000 immigration expense most ordinary Americans don't need to spend. After the disastrous 2008, my net-worth stands at around $380, 000 comparing to median net-worth of $8, 525 at my age group(1). It also bests the median net-worth at my income group but I don't think that comparison logical or meaningful.

My YTD return (August 23, 2009) is 27.2%(2), beating S&P 500 and the majority of the mutual funds with a wide margin (3). My one year return is -6.66%, beating S&P 500 and the majority of the mutual funds with a wide margin. And that's the combination of all my investments including my 401K plan and Ohio529 plan only having mutual fund options. I believe my own investments beat the mutual fund industry as a whole for the last five years hand over fist. Since my past record is not audited and published, the real measurement of the performance is in the future.

Since I believe my past performance stands up to the industry's, I believe almost anybody can do the same if he/she sets his/her mind to the task. And in my blog, I will share some experience and lessons learned. I will also share some of my thoughts on how the industry failed us beginning with my next post: Sell Your Mutual Fund!

3. Publish a tractable investment record.

One way to fight the bad practices of the industry is to show it how to do it right. I want to publish my records going forward. And the record is tractable and verifiable.

That's it. I can sacrifice some of my privacy to achieve the above goals. Let's keep our fingers crossed to see if I can achieve those goals. And dear reader, since you have already read this far, Thank you! Please move to the post “How am I going to operate this blog?" which will give you an idea how the blog will strive to reach my goals.

Thanks.

Tom
(1)Source: www.CNNMoney.com.
(2)Reported by Microsoft Money Plus.
(3)Source: www.morningstar.com