Thursday, February 25, 2016

Invest to build Wealth!

Someone told me, stock market are mean for the Rich people to make money, but not for small investor. The problem is, why can't we invest like the rich since we know how the rich make money. You can say, "I have no money to start investment". Then, that is for sure you will not become rich forever.

The basic is, at least you need to have a lump sum of money to start the investment. If you are not born with silver spoon, then you may start to save some of the hard earn money, at least a small snow ball to start. Over the year, the snow ball will keep rolling and become bigger and bigger.

That remind me one of the famous quote from Warren Buffet: "Life is like a snowball. The important thing is finding wet snow and a really long hill.

For years, I not really understand what this mean and how to relate it with stock market. After years of experience, everything look simple and easy. Just imagine if few years ago, one bought XYZ stock at $6, then today the stock price become $50, what this means to you. How many people can hold this stock for the share price to reach $50 and never sell it? Only the rich can do it, that's why, invest like the Rich is important.

Unfortunately, many people believe displaying high social status is much important than building wealth. So, you see a lot of people driving big car, stay in big house but come with financial burden. Again, it's up to your choice, be it succeed in building wealth or is it more important to displaying high social status?

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