There are three major steps that master investors take and they are: 1) identify very good businesses, 2) buy them only at a huge discount and 3) wait for the market to realize its true value or overvalue it. Step 1: Identify Very Good Businesses Always remember that when you are buying a stock, you [...]
In the classic best-selling book ‘Think & Grow Rich’, Napoleon Hill found through intensive research that the five hundred richest men in the world all had one thing in common, they all belonged to a strong support group of like-minded individuals where they received the knowledge, advice, resources, contacts and emotional support to succeed in [...]
Before you can ever reduce your expenses and increase your savings, you must first know where your money is going to. Many people share the same experience of having no idea where their $5,000 salary went. ‘How did I spend so much money?’ ‘I thought that I should have $1,000 left at the end of [...]
Mention the word ‘stocks’, and many people have painful experiences to narrate. Stories abound of how people have had their life savings wiped out overnight. Or money they have borrowed to buy a ‘sure, hot stock’ was lost when the stock suddenly took a nose dive. Ever since I was young, my parents and grandparents [...]
Many people have the wrong idea about what being a millionaire is all about. Many also equate instant gratification with happiness. They believe that millionaires live lavish lifestyles and all that self-indulgence brings lasting happiness. Well, from my research and my own observations of the many self-made multi-millionaires I know, I find that most self-made, [...]
A mutual fund (called ‘unit trust’ in Asia) is an investment vehicle that pools money from many individual investors. A professional fund manager invests and manages these funds into stocks, bonds and other securities. People usually invest in mutual funds because it is offers the advantage of broad diversification (it spreads your money over tens [...]
Let me give you an example to illustrate the power of compounding. Let’s say we played a game of golf and we made a friendly bet of 10-cent on the first hole, with the bet doubling on each hole. Would you take on this bet? Now, if you were familiar with the game of golf, [...]