If you are given an axe to chop down a tree , you may be able to do so in a few hours (depending on type of tree and experience). But to do it daily and to increase the number of trees to be chopped down would require much more time. This not only increase labour costs and time but it is also not efficient.
Now, the boss gives you a chainsaw. This piece of equipment has a leverage over the axe whereby it takes less time and effort to chop down a tree, thus increasing production , saves time and effort.
Similarly in the investing world, it is the same. We got to find the leverage since time is a commodity where all rich or poor , billionaires or middle income worker have only 24 hours a day, no more no less. How you utilise your time to increase your rates of return will determine your quality of life in the future.
While some had found the pot of gold in cryptocurrency, others swear by their own discovery of properties, mutual funds, ETFs (including leveraged ETFs) and other assets.
In my opinion, the products mix need not be too varied. One neglecting factor is EXPERIENCE. By starting early in one investing career, one can afford to make more mistakes in their early investing years where likely they have a smaller capital base to invest. Losing it all is less risky compared to a person who is retiring in a few years time.
Over time, the experience will accumulate having hit with the lows and highs and been through the cycles of investment market. Then, when opportunities strike, one can be greedy while others are afraid to enter. This is not blind faith by simply following the rules of Warren Buffett but having gone through it yourself speaks volume than hearsay or based on theory.
Confidence in investing is not restricted to having access to a large capital base as we have seen hedge funds with billions going down under and making negative returns. Your confidence comes with experience as you embark on the roller coaster rides of different market cycles.
Let not others discourage you if you have a small capital base or have little or no experience in investing. There are plenty of information , albeit not organised that you can access to.
How fast and far you want to go - it is up to you. You are the operant power, it does not operate by itself !
Does the bible teach you about leverage ?
Check this out :
“If the iron be blunt, and he do not whet the edge, then must he put to more strength: but wisdom is profitable to direct” (Eccl 10:10).
Now, the boss gives you a chainsaw. This piece of equipment has a leverage over the axe whereby it takes less time and effort to chop down a tree, thus increasing production , saves time and effort.
Similarly in the investing world, it is the same. We got to find the leverage since time is a commodity where all rich or poor , billionaires or middle income worker have only 24 hours a day, no more no less. How you utilise your time to increase your rates of return will determine your quality of life in the future.
While some had found the pot of gold in cryptocurrency, others swear by their own discovery of properties, mutual funds, ETFs (including leveraged ETFs) and other assets.
In my opinion, the products mix need not be too varied. One neglecting factor is EXPERIENCE. By starting early in one investing career, one can afford to make more mistakes in their early investing years where likely they have a smaller capital base to invest. Losing it all is less risky compared to a person who is retiring in a few years time.
Over time, the experience will accumulate having hit with the lows and highs and been through the cycles of investment market. Then, when opportunities strike, one can be greedy while others are afraid to enter. This is not blind faith by simply following the rules of Warren Buffett but having gone through it yourself speaks volume than hearsay or based on theory.
Confidence in investing is not restricted to having access to a large capital base as we have seen hedge funds with billions going down under and making negative returns. Your confidence comes with experience as you embark on the roller coaster rides of different market cycles.
Let not others discourage you if you have a small capital base or have little or no experience in investing. There are plenty of information , albeit not organised that you can access to.
How fast and far you want to go - it is up to you. You are the operant power, it does not operate by itself !
Does the bible teach you about leverage ?
Check this out :
“If the iron be blunt, and he do not whet the edge, then must he put to more strength: but wisdom is profitable to direct” (Eccl 10:10).
Comment:
www.globaltimes.cn/p...202107/1229927.shtml