People nowadays want everything fast. From fast food, bullet trains,
planes and sports cars.
Their attitude towards money is the same as well. They want to see
results as soon as they make an investment.
About Waiting
Good things come to those who wait, so don' rush it. That's how
Warren Buffets makes his investments.
He invests for the long term for at least 10 years or longer. Most
people trade stocks on a short term basis. They buy today then they
sell few days later.
They don't have the patience to wait for their money to grow but in
fact they are actually not making much money at all.
He believes in the power of compounding. Even Albert Einstein, who
is a very intelligent man, has said “Compounding is the eighth wonder
of the world".
What is compounding and how does it work?
Here's a simple scenario to make you understand how compounding
works. Let’s say you actually found a pot of gold at the end of the
rainbow and you were given two choices.
First option, you can take a million dollars now or the second option.
Only take one penny now but doubling it in the next 30 days.
Which one would be your choice?
Without a doubt, most people would go for the million dollars
because they don't see anything else but the cold hard cash in front of
them. Do you want to know how much the single penny will
accumulate to after 30 days?
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You would have ended up with more than 5 million dollars. If you
find it a little hard to believe, try it yourself.
Take $0.01 and multiply it by 2, do it 30 times. Can you see how
compounding works and investors like Warren Buffet are making
their money work for them?
Of course in reality it is unrealistic to compound your investments
everyday but it's done on a yearly basis.
Another thing you need to take into account is how much time it takes
to grow your wealth. It will take much longer than 30 days to
compound your investment.
It's a good idea to start investing early in your life. . Your savings will
be compounded every year, the longer you keep your investments, the
richer you become.
Save and invest regularly, that's how you are going to make your seed
money grow. It takes time to see you rewards but it will be worth it.
Always pay yourself before you others and spend your money away.
If you don't have the patience, it will be difficult for you to invest for a
long term. It takes time to see your wealth grow but once you reach a
milestone such as your first $100,000 or even a million dollars. It
gets easier from there.
Read on to discover how the number one investor in the world began
investing…
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The Warren Buffet Story
Warren Buffet had a different mindset compared to other children,
when he was growing up.
At age six he bought a supply of Cola bottles and made a good profit
of 5 cents per six pack. Few years later, he began delivering
newspapers and was hardworking and prudent.
He saved up about $1200 and went back to his hometown, Omaha
and rented a few acres of land for farming purpose.
He had so many business ventures when he was still a kid compared
to most of the adults at that time.
But when he was 11 years old, he one of the most valuable lessons
which shaped him to the person he is today.
He bought three stock shares for $38 and the stock price immediately
dropped to $27. It was a mind opening experience for him. As soon
the stock price went up to $40, he sold them and made a tiny profit.
But what happened after that left him feeling much worse. The stock
price continued to increase and went up to $200 and stayed there. It
was his first lesson in the share market. It taught him the virtue of
patience and it started a spark in him.
Today he's one of the most respected and richest men in the world.
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School of Hard Knocks
Some of the wealthiest people on earth go through the school of hard
knocks, to get where they are today. They don't usually have a proper
education. Well most of them of didn't go to college or never had the
chance to.
It was pure courage and dedication that brought them out of their
struggles and gave them wealth and fame.
Take a look at some our recent wealthiest men in the world. Steve
Jobs, Mark Zuckerberg and Bill Gates all went to college but they all
became drop outs and they began to work on their projects and
ventures.
None of them wanted to go the usual route of working 9-5 for
someone else. They wanted to create business and hire other people
to work for them instead.
Although a proper education is necessary but it is not the only path to
success. If you are keen to improve yourself and have a desire for
knowledge and growth, you can get what you dream of.
You don't have to do things on your own. Get a mentor and follow
their footsteps, it is a faster way to success. At the same time your
mentor will motivate you and give you the push you need.
Don't be afraid to learn and try new things. Put yourself out there and
meet new people who are positive about life. Make a mastermind
group to have a few people who have the same mindset as you.
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Think about creative business ideas and go and actually do it. You will
be surprised what comes out of it. Once you start the ball rolling, you
will begin to get so many ideas, you won't even have time for yourself.
