Long Term Mindset
The Investors Who Walked Away Too Early
We’ve seen it in our own circles—friends, loved ones, and acquaintances who entered the stock market full of excitement, eager to grow their wealth. They jumped in, made some good trades, and even saw early wins. But without the right mindset and framework, setbacks shook their confidence. A market dip, a bad stock pick, or slower-than-expected gains made them question if investing was worth it. Eventually, they walked away, missing out on the long-term rewards the market offers to those who stay the course.
It's Not About Getting Rich Quick, But Building Wealth Slowly and Surely
A Profound Lesson From Warren Buffett
Warren Buffett teaches two simple yet powerful rules of investing:
- Rule #1: Do not lose money.
- Rule #2: Do not forget Rule #1.
At first, these rules seemed almost too simple. But over time, we began to grasp their deeper meaning. Investing isn’t just about picking the right stocks—it’s about minimizing costly mistakes, learning from setbacks, and staying in the game. The real key is to keep compounding, uninterrupted, for as long as possible.
Compounding is the eighth wonder of the world
What is Compounding
| Year | Amount |
|---|---|
| 1 | 110K |
| 10 | 259K |
| 20 | 672K |
| 30 | 1.7M |
| 40 | 4.5M |
| 50 | 11.7M |
As you can see, it’s not until the later years that the growth starts to feel significant. This is the power of compounding—over time, your returns start generating their own returns, and the cycle keeps accelerating. The longer you let it work, the more wonderful the results become!
Chasing Quick Gains: A Roadblock to Long-Term Success
Chasing big gains can seem enticing, and you might even hit those big wins from time to time. However, the problem with this approach is that, even when successful, it often comes with risks and mistakes. Each time we take a shortcut in our investment journey, we expose ourselves to potential errors—whether it’s poor timing, emotional decisions, or chasing trends. Over time, these mistakes can easily cancel out the gains we’ve made.
Even if we score big occasionally, our true wealth isn’t growing consistently. We’re not progressing forward, we’re not allowing our investments to compound, and in the end, we remain stuck at a certain level. The key to long-term success is resisting the urge to chase quick wins and instead focusing on steady, uninterrupted growth.
Start Early, Live a Healthy Life, and Commit to Long-Term Investing
Satisfactory Returns Over Decades
Achieving success in investing is about targeting realistic, satisfactory returns—ones that are sustainable and achievable over time. It’s not about chasing big, quick wins but focusing on minimizing risk and avoiding mistakes. By keeping our investments steady and thoughtful, we allow our wealth to compound, growing slowly but surely. The key is to stay patient, avoid unnecessary setbacks, and continuously move forward. Over time, this approach ensures that our investments are always working for us, compounding steadily without interruptions. The beauty of this strategy is that, when done right, you can look back after decades and realize how much progress has been made—without the need for constant, drastic action. Everything keeps marching forward, and the results naturally follow.
Have a Long Investing Journey
Many Filipinos hesitate to invest because they feel their salaries are too small to make a difference. But the truth is, time is the investor’s best friend. The math is on our side—by extending the investment journey, even small amounts can grow into something significant over time.
That’s why we truly believe the key to success is to start investing as early as possible, no matter the amount. It’s not about how much you start with, but about giving time the chance to work for you. And just as important is taking care of your health, so you can extend that investment horizon and see your wealth grow even more. So, take the first step today, and let time—and good health—be your allies in building a prosperous future.
