Ok, enough whining, not sure why every time i blog, its whine whine whine, shall try to control that in the future.
Have i told you that staying with rich people sucks? (Oops, whine again!) No but really, it kinda give you an eye opener that how a little money can go a long way. They didn't even earn that money, their parents did and they spend it like they deserve it, without second thoughts. This bring me to the topic to how these people get so freaking rich!!
We all have to admit, no matter how un-money-minded you are, deep down inside, everyone wants to become rich. We just don't know how. Or we know its too difficult and therefore lie to everyone that money matters not to them. I know some people and friends tend to think that i am money-minded but there are some difference between financial savvy and money craze ok? And im NOT the latter. =p
Well, how to get rich? Hmmm.... tough question eh? So why not we ask someone who IS rich, they should know how. So let's take Mr Buffett then, second richest man in the world and prominent value-investors.
In a book which he gave advises named the "Snowball", he highlighted the one most powerful tool he think made him rich, a tool that everyone knows and can easily practice. The greatest money making business ever created - Compounding!
Its that simple ! You put some money aside and let it grow, then periodically put in small amounts, and after sometime, you will get a huge amount! Just like a Snowball! As it rolls downhill, it accumulates snow, and it accumulate at a greater and greater rate until it becomes....an Avalanche!
Too good to be true? Mayyyybe. But wait, don't everyone know about this already, huh? Then why is everyone not already rich? I mean god-damn it, if its that simple, why the heck don't you teach it to me during primary school. Or even before that! The secret of compounding should have been taught to me much earlier. Then i wouldn't have went to primary school, just put all the school fees, book money, everything into the bank. Skip primary school too and so is secondary and put all the money away. Then no degree or even Master, putting into the bank for compounding. Then by the time you graduated from college, i would have so much money compounded throughout the 22 years of your study, i can basically hire you, since i never been to school before you see. I'm basically a total idiot but so rich that all you study for is just to be as rich as me. =D So, why didn't ANYONE tell me this earlier, now i need to compound it until i am 50 years old to be rich, heck! After all ....
The truth is, it was never this easy. To have the disciplinary to constantly put money away that you would NEVER touch for 20/30 years is almost impossible for anyone. Even Mr. Buffett worked a few jobs when he was a kid, and gave up much of his teen and college life working saving his money to compound it. That is why i can say that there will be no one else like Mr. Buffett. Or to put it more accurately, there can no longer anyone be like Warren Buffett. Why? Is it that people now lacked discipline? lacked talent? lacked determination and skill?
No, its because the world is a different place now than before. As the society moves towards perfection, what make us (investors and arbitragers)rich - mispricing and loopholes in the system - are getting rare and far apart. Nobody wants to be rich when they are old, but rich when they are young so they can enjoy the wealth and show it off. And because of this, there is too much "temptations" going around for teenage these days, its hardly possible to save up. Speaking as a teen myself, in this era populated by seductive goods of desire, i stand to be corrected. If there were to be PS3, A Wii, Xbox, Iphones, Ipads, 3D Cinemas, Karaokes and whatnots in the era where Warren Buffett is still in his teens, i bet he would have failed to save and compound all that money of his for his investments and to be so rich. I for one, as an untalented undetermined and unskill man, faces these challenge everyday. Ahhh, what would Warren Buffett do?
So after all this, do you think there can still be another Warren Buffett? =p
Oh life...
aiyo, ur first part of whinning not referring to me right? thx lor for settle some stuff for me after ur exam lor! u can see i am really really busy mah!! was hoping u can do my assign for me but in the end i do myself oso mah!!:(
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