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Wealth Building

The Amazing Power of The Long Game Plan

The Amazing Power of The Long-Game Plan

In 1964, Gary Flandro stated that the outer planets – Jupiter, Saturn, Uranus, and Neptune – would align in a rare pattern in the late 1970s. And NASA scientists really wanted to catch hold of such event that occurred only once in 2 centuries. 176 years to be very precise. But how? By launching a mission that would take a road trip towards these giant marbles. In less time. With less cost.

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Wealth is What We Don't See

Wealth is What We Don’t See

Curt Degerman spent his adult life collecting plastic cans from the trash bins. Being a ragpicker, he never paid even a single penny for a meal. He consumed whatsoever unconsumed food he found in the bins of restaurants. Neither he married. Nor he had a family of his own. Just lived a solitary life. For forty long years, he cycled across his town in Sweden, picked up cans and exchanged them with a recycling plant for money.

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Being Fearless is the Way to Go

Being Fearless is the Way to Go

Felix Baumgartner was sixteen when he jumped off a building for the first time. That’s when he realized it was what he really wanted to do. Jumping off the bridges, parachutes, mountains, and pillars. But he had no idea what his future had in store for him. Never he had imagined that his luck would take him 39 km above East Mexico and make him jump at a speed that would exceed the speed of sound.

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story of indians of manhattan

Those $24 Are Worth $281-Trillion Today!!!

 

I am sure that all of you must have heard about the famous Manhattan Island in New York City. It’s one of the financial and commercial centers of America which also includes the iconic Empire State Building as well as Times Square.

 

But do you really know how much did Indians of Manhattan get from immigrants by selling it in 1626? Just$24.

 

Yes, Indians of Manhattan sold the whole island for $24. Today, the book value of the whole land is worth $30-Billion (as per reports). And if you believe the market reports, the value of the land should be double the book-value i.e. $60-Billion. The value appreciated by whopping 216666666567% in these many years. Big deal, right?

 

Hold on. Let me show you the other side of the story.

 

What if the Indians of Manhattan had invested those $24 in 1626 at the rate of 8%? Well, the amount of $24, compounded annually at the rate of 8% in a time period of 1626-2017, would have been worth $281-Trillion. Money would have compounded for whopping 391 years. 

 

Had they invested it at 7%, the final amount would have been $7.4-Trillion. And that’s the difference a minute change in percentage makes. A difference of 1% CAGR would have reduced the final amount by a huge margin of $273.6-Trillion.

 

Lessons to be learned from this story:

 

  1. Always take a long-term perspective while investing your money.
  2. Let your money compound for a long period of time. It’s when it works best.

 

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how she made millions

Story of a Patient Lady – How Anne Scheiber Made $22 Million

 

Guys, let me share a success story of a woman who made millions by staying patient and calm in a stock market.

 

Her exceptional investing journey is a lesson for all investors who get panicked by the ups and downs of stock markets and reap the profits/losses by thinking short-term. She is a true example of buy and hold strategy. During her investing career, she hardly sold her holdings. One can learn from her the buy-and-hold strategy.

 

Let’s read her story.

 

Anne Scheiber, born in 1893, was an auditor in IRS and made not more than $4000 a year. Being a Jewish as well as a woman, she hardly got any promotion in her career and retired with a corpus of $5000 and an annual pension of around $3100 per year.

 

With a frugal lifestyle and high savings, she started her journey with a buy-and-hold strategy. As she had an ample amount of time in her retirement phase, she picked up some marvelous dividend paying companies(Coca Cola, Abbott, Pfizer etc) during the course of time.

 

Anne Scheiber Portfolio

Anne Scheiber Portfolio

 

At the time of her death, at the age of 101, her portfolio valuation was around $22 Million.

 

The biggest secret behind her success was the time she gave her investments to grow and patience to hold on. She never interrupted the process of compounding and let her portfolio grow by giving it a huge time period of 50 years.

 

What can you learn from Anne Scheiber?

 

All we can learn from her is – Being Patient. Just buy good companies and hold them forever. Never interrupt the cycle of compounding. You’ll reap the benefits of compounding.

 

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