Audio available in app
Time is the most powerful force in investing from "summary" of The Psychology of Money by Morgan Housel
Time is the most powerful force in investing. It sounds almost trite, I know. But it's only when you think about this idea for a while that you start to realize how profoundly powerful it really is. Because time doesn't just allow a few people to accumulate wealth. It allows the majority of wealth to be created in the first place. Think about it this way. The stock market historically returns about 7% a year after inflation. That's a pretty good return, but it's not enough to make you wealthy quickly. To turn a small amount of money into a large amount requires two things: a reasonable rate of return and time. The more time you give it, the more powerful the compounding effect becomes. This is why Warren Buffett, the most successful investor of all time, once said that his favorite holding period for an investment is "forever." Because he understands the power of time in investing. He knows that if you can find solid investments and give ...Similar Posts
Financial literacy is key for success
Financial literacy is essential for achieving success in today's complex and fast-paced world. This concept refers to the knowl...
Look for companies with strong competitive advantages
When seeking out potential investments, it is crucial to identify companies that possess strong competitive advantages. These a...
Keep learning about finances
To achieve financial success, it is essential to continuously educate yourself about finances. Learning about how money works, ...
Learning from past financial mistakes can lead to better choices
When it comes to money, one of the most valuable lessons we can learn is from our past financial mistakes. Instead of dwelling ...
Understand your spending habits
To truly get a handle on your finances, you need to dig deep and understand your spending habits. This means taking a long, har...
Active trading can lead to high costs and poor returns
Active trading, or frequent buying and selling of securities, is a popular strategy among investors looking to outperform the m...
Diversify
Diversification is a fundamental principle of investing that can help manage risk and improve returns. By spreading your invest...
Setting boundaries with money is important
Establishing clear boundaries with our finances is crucial for maintaining our financial well-being. When we set boundaries wit...
Travel strategically to maximize experiences and minimize costs
When it comes to traveling, strategic planning can make all the difference in your experience and expenses. By carefully consid...
Generosity can enhance personal wealth
Generosity is a virtue that is often overlooked in the pursuit of personal wealth. Many people believe that the key to riches l...