Recently, @MoneywiseSmart conducted an informative session with the Joys of Compounding author @Gautam__Baid, together with @kelvestor and Chong Ser Jing.
Here are my key takeaways from the awesome sharing by Gautam. (Here's the video link: )
Here are my key takeaways from the awesome sharing by Gautam. (Here's the video link: )
Compound interest is the eighth wonder of the world. However, there'll be this "valley of disappointment" one has to go through before we can see the magic of compounding happening. 
You can stick through the "valley of disappointment" and not give up by finding your North Star.
You can find your calling by finding your Ikigai.
The key to compounding is time and endurance. And it's not necessarily earning the highest returns.
But volatility may affect you from doing sound things in investing. However, the up-and-down movements in the stock market are normal, just like how day follows night and night follows day.
But through all volatility, if you had invested in great businesses, you would have done well across all business cycles. This is despite all the uncertainties like rising interest rates, inflation, political tensions. But bad businesses destroy wealth, even at low entry prices.
We shouldn't be timing the market. Time in the market is what matters.
So what we should do is stay the course. Focus is the key to success.
Why investing at a young age is powerful.
The +-x/^ formula to wealth.
How transaction costs, no matter how small they look, add up over time.
Always reinvest your dividends.
About bull and bear markets. Never let a bear market go to waste (reminded me of the recent March 2020 market crash).
About value traps. Everything trades at the level it does for a reason, so respect the market's wisdom.
As investors, we need to adapt to changing times.
We should avoid psychological biases (by using a checklist and by keeping an investing journal).
Traditional accounting is not keeping up with the changing times. Always focus on unit economics for digital businesses and not on their accounting profits.
Investors who have a strong investing psyche have an edge and it is their competitive advantage. How you behave will matter far more than the fees you pay, asset allocation, or analyses.
Here's how to sustain wealth after we have created it.
As you gain experience, over time, you will develop a "feel" for the stock market (I totally agree with that).
Look beyond the short-term "suffering" when analysing companies that are investing for long-term growth.
Have humility and be a learning machine.
Have a constant learning mindset so you can be a lifelong learner.
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