Sunday, 4 May 2014

How to become rich in stocks??? (25)



Read? How to become rich in stocks??? (24)


The Magic of Compounding in the stock market?


How?

Many retail investors may think that the magic of compounding happened when they re-invest their collected dividends and/or their realised capital gains.

Right?





 
The Magic of Compounding can also be happening without us having to do any re-investing

Let the companies do the magic themselves while we keep our eyes closely on the news flow.


Why not?

Over 14 years ...


 
 
 
Over 13 years ...
 
 




















Over 12 years ...












6 comments:

  1. Told my two colleagues what not to learn from another 59 age old colleague who has been speculating in the stock market for 30+ years and just manage to make a bit of money (losing back whatever winning he had over market cycles). Now this 59 year old want to learn to be long-term investor from me. Not too late to learn. Right?

    Speculating is a tough business and few can succeed!

    ReplyDelete
    Replies
    1. How to start serious learning to become an retail investor?

      Easy for me. I just dump them with a long list of ebooks to start off.

      Survive this round of reading first and talk later.

      LOL!

      Delete
    2. Luckily, I wake up earlier than your 59 years old colleague. Thanks to my mentor!

      Delete
  2. Ha! Ha!
    Especially those books that stress on RISKS! RISKS! RISKS! And books on "NO MONEY NO TALK" (aka money management of SPARE MONEY).

    ReplyDelete
    Replies
    1. :-)

      Can't survive the reading. Don't say I never teach them. LOL!

      Delete
    2. CW,

      People want easy, quick, and with instant results.

      Next time collect money FIRST, then tell them to do the required basic 101 readings!

      LOL!

      Delete