I am 22. What can I do to become a multi-millionaire in the next 25 years?
I am a realist. So I am very cautious when I buy something. I read annual reports of companies, look at financial statements and calculate my intrinsec value of stocks. I beated the market (no leverage) in 2 years of experience. But getting rich quick is a dream. Should I keep investing in stocks?
I am extremely glad to know your approach a in investing so far. I am also glad to know that all this you have achieved at such an young age! But you say that getting rich quick had remained a dream. My friend, let me assure you that getting rich quick had remained a pipe dream for a vast number of people in the past and will remain so in the future also.
My guru Warren Buffett says, “Certain things take time in life, and you cannot do anything. You cannot get a child in one month by making nine women pregnant.”
Why is it so?
What actually creates lasting wealth is not the investing acumen - but simply time.
|Graph Depicting the Miracle of Compounding|
You can see how the line is climbing steeply after 30 years!
In reality, a very long time and the are the vital ingredients behind immense riches and wealth.
Even Warren Buffett, one of the richest men in the world today could only build his immense wealth only over 35 years. Please see the following table which shows how investing humble sum of Rs.10,000 every month in stocks can produce immense success over a long time.
So my sincere advice to you, my young friend is that from your own words you are on the right track and doing extremely well. Just keep it up for the next 38 years and by 60 you must be an unimaginably rich and wealthy person.