INVESTING IS SKILL, SECRET IS TIME

We wish to travel around the world and at least visit one of the seven wonders of the world. Well I would love to fly and visit the eighth one. Wondering what’s the eighth one?

According to Albert Einstein “Compound Interest” is the eight wonder of the world. And I have always dreamt of exploring this wonder in depth.

Well some of the most important life hacks are taught in early academia, however we fail to acknowledge them. Basic math is so underrated. All of us would have solved dozens of math problem using this

even before puberty hit us. But majority of us fail to apply this in real world even after entering adulthood. This life hack not just applies to businesses and investments but it rather applies in all spheres of

life – relationships, wealth, knowledge, health, trust, character, reputation and much more.

Its amazing how it takes almost a decade for a mango tree to grow from seedling to a full- grown tree. But post that longevity, are the ripe, juicy and delicious mangoes. That’s exactly how compounding works. It requires exorbitant amount of time to produce exponential results. Nothing phenomenal can happen TOO SOON TOO FAST!

Rick Geurine, one of the three partners at Berkshire Hathaway killed his own fate in hurry. Buffet himself appreciated him to be one of the smarter guy but since Rick wanted to be paid sooner he went out of the game.

The Oracle of Omaha (aka Warren Buffet) is worth what he is because he chose to play the long term game. He chose patience and consistency over restlessness and variability. His real key to success has been his consistency in investing for almost eight decades now.

Similarly to reap the benefits of compounding it requires efforts like delayed gratification i.e giving up on something today to have more of it tomorrow. Frugality is a key driver. One should always cut the coat according to the cloth and not squander around. Furthermore it is also important to ensure to play the long term game by acknowledging the pain today for gain of tomorrow.

Credits- Prof. Sanjay Bakshi, Morgan Housel, The Almanac of Naval Ravikanrt