I just bought this book 2 days ago and have been reading in my free time. Here are some good principals that have i want to share with u guys in my own expression of words.
1) Do not be fixated on high returns.
We cannot just look at the high yielding dividend and buy a stock. It may not last long. There are other factors to look into.
2) Magic of compounding.
$10,000 invested now could become $500,000 in 30 years time if you let the magic do its work assuming the returns generated is 10 percent and the returns generated are put back into the investment.
The earlier you start, the greater benefits. Its like watching your children grow up with only a one time expense and let time nurture itself.
3) Go with your gut feel, don't just follow the crowd.
Take a look at Apple. A sum of US$10,000 invested in November 2002 in that "fruit company" would have grown to US$750,000 today.
Nobody knows what will happen in the future. I am sure there are many similar companies out there now that have yet to grow to their highest potential. But we dont know which is it.
Think about it... if we can cast aside a small amount to gamble in a basket of young stocks (which you think will make it in the future). Lets take 10 different young stocks, Im sure at least 1 or 2 will succeed in a long run. Like Apple, then your gut feel investment would be a great success.
Thats all for today, im having a hard time typing with my android phone since in on duty currently. Ah yes im in the military.
please bear with my flip flap english as i have really lost touch since i dont practice writing composition everyday. Im sure in time to come, there will be improvement shown.
Bonus question: what is the furthest distance on earth. (See if u can get the correct answer)
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