How to turn $100 into $9.6 Billion

You're right, this is very interesting -- many people are interested in the fast buck, rather than slow and steady growth.

An example of slow and steady growth:

Suppose I could match Warren Buffett's spectacular 23% pa average return (quite a difficult feat!).

If I invested $10,000 now, at that rate, until I retired at 65 (45 years from now, I'm just 20), I'd retire with $111,104,081.85. Not a bad retirement package.

I suppose that's why I've channelled $10,000 into investments now, and put off buying myself a nicer car.

But now let's look at the quick and fast buck.

Personally, I think it's understandable why there's such an interest in it.

Just look at the state of the market we're in -- The US has experienced a long bull run. The market (with a few exceptions like tech stocks earlier this year) has mostly gone up.

This can give people the feeling of invincibility.

Let's say I manage a portfolio and I get a 30% return quickly on some flash stocks. My guess is many people would react to that thinking they're highly skilled, on top of the world, and so forth.

Perhaps in reality the return was more to do with how the market has been going & luck rather than skill.

But nobody's going to tell them that. And as such, they continue on that course.

But what happens if there's suddenly a bear market? Or a crash? Not a correction, but a crash?

Profits dwindle, and interest in the stock market generally declines.

Now I'm not saying that I'm totally against risk.

On the contrary, I don't mind taking big risks along as the numbers stack up in my favour and the risk/reward payoff is favourable for me.

I just believe that taking big risks and assuming high payoffs will occur all the time is not the wisest thing to do.

But naturally everybody has their own tolerances for risk, so everybody is left to their own decisions. :)

- Thomas.

> Go back in time and invest in the very same
> things Warren Buffet did.

> A while back there was a thread. In that
> thread passive income was mentioned.
> Investing for the long haul was mentioned.
> Slow and steady growth was mentioned. Only a
> few people were interested.

> Recently a thread appeared. In that thread
> INSTANT WEALTH was mentioned. Buying large
> volumes of "stock" with small
> investments was mentioned. The whole board
> went nuts over it.

> While the only thing I know about the stock
> market is that the broker makes money when
> you buy and when you sell (regardless of
> whether you made or lost money), I am a good
> observer. And what I saw is interesting.

> It seems to me that most people would rather
> make a quick buck than go into something for
> the long haul. Even if the long haul makes
> more sense or is a "safer" way to
> go. (matter of opinion of course)

> Okay, so this is nothing new. I just found
> it interesting to see it played out in
> living technicolor on the one board.

> Hmmm.

> Michael Ross.