Thursday, April 20, 2017

Classic example of 8th Wonder of The World!!

Classic example of 8th Wonder of The World!!

We all know that Oracle of Omaha, Warren Buffett is one of the wealthiest living being on earth. Buffett's net worth is close to 75 Billion US$. But guess what, Warren Buffett earned almost 90℅ of this massive wealth after he turned 50. Mind you, he started investing when he was only 11.



What does this tell you? Compound interest is magical but in the initial years you will not notice the impact of compounding. It's only after few decades compounding turns truly magical and unbelievable.
It is important to see the effect of long term compounding in his account statement. Not churning the portfolio is the key to achieving this.

Compounding is like God, your prayers will be answered after no. of years. Therefore:

1. Start investing as early as possible.
2. Invest regularly.
3. Practice delayed gratification.
4. Have Faith and Patience.



Can a newly born baby start walking the next day?
Can a student of nursery grade be admitted to engineering college the next day?
Can multistorey skyscraper be made overnight?
Can business turn profitable on day one?
Was Rome built in a day?

Try to answer these questions and think about shortcuts. 

I know, you can't.

Systematic and discipline hard work has to be put in, for achieving something worthwhile. Isn't it?

This is true in life, sports, studies, and  SIPs (equity mutual funds) too.

Microsoft was started from a garage some fourty five years back. Warren Buffett started investing at the age of 11 and today he is more than eighty years old. That's almost seventy years of investing and become world's richest person in the world.

"Dheere dheere he mana, dheere he sab hoye.
Mali seeche sau ghara, ritu aaye phal hoye" - Sant Kabir

Meaning, it is important to be patient as things happen over a period of time. The gardener may water a plant hundred times but the plant shall bear fruit only when the season comes.

I feel SIP investing is one such things, isn't it?



Regards,
Srikanth Matrubai


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