My conviction is to help the needy. Thus the investment king caught my attention not too long ago especially with this catchy phrase that I like so much. Here I'm going to state clearly that I'm no self-proclaimed investment guru nor I'm nearly as successful as Warren Buffet. The thing I like in life is that you can find wisdom in almost any place or even from the least peculiar person. Maybe when I'm successful, this might become a hot topic where everybody wants a piece of the "wisdom" or I might have continued to be a nobody and this article might have gone unnoticed or even I might be a failure whereby this article will also be a hot topic because people would make a mockery out of it.
Anyway I couldn't care less and since I like this phrase so much, I just wanted to share my understanding. Let's dissect it.
"Life is like a snowball"
From this phrase, I feel like I know him a little better. His life is all about investment. Why do I say that? I get the clue from the 2nd half but let's put it at that for the moment. Let's argue a bit, if his life is about enjoying himself, he would've put something like "Carpe Diem!" or "life is short, enjoy while you can".
Now, why snowball? We have all watched cartoon that a small snowball will get larger and larger when it's rolled down a hill right? So it's a secret on how his investment can get larger.
"Find a wet one and a really long hill"
Ok, the 2nd part will explain most of my previous theories. Like I said earlier, his life is all about investing. Because he believes in long term. The "really long hill" represents the time he wants or need, not a "short life, live while you can" kind of attitude. Why a "wet one"? Because a snowball can become bigger as it rolls down a hill right? A wet one can get bigger! "A really long hill"? It can get even bigger!!
In summary, he believes in the concept of compounding and long term. So he might also believe in delayed-gratification as well because most "long term thinkers" believes in it. Prove it? Ok, logically thinking could you consistently save money to buy a bungalow in a few months time? No, because it's long term. Can you have a consistent positive investment portfolio if you're always using up the dividends or interests you get from your investments? Still not convinced? I couldn't care less either.
In addition, I've read it somewhere that he makes about 20% per annum consistently from his investments and if you compound it for 40 years, irregardless of any amount of money you start with, anybody could become rich. Don't believe me? Try it out on your excel sheet, if your startup capital is $1,000 it would be $1.2M after 40 years, if it's $10,000 it would be $12M, if it's $100,000, it would be $122M and so forth.
The moral of the story, start young, be frugal & start practising delayed-gratification.
No comments:
Post a Comment