Before I start talking about the main topic, let me conclude a happy event this month. Simple Investor SG and I had just completed our 2nd Value/Growth Investing Workshop. Although the room is a bit tiny, but everyone turned up. There was even an uncle that came all the way from Hong Kong, which was a nice surprise!
Back to the main topic...
This post is basically inspired by SG Thumbtack Investor's article.
He talks about people reporting huge gain this year and explains that if it was just a 1 year huge gain, investors should not be not happy. This is because they forgot about the power of compounding. He went on to explain that if an investor makes 20% every year for the next 35 years, he will make more money than someone who has inconsistent gains ranging from negative 10% to 60% every 5 years.
On the ......