A competent fund manager never loses all the money or becomes bankrupt, but achieves slow and steady growth. 20 percent gains per annum for 30 years makes 1000USD into over 200,000USD and this is when you never put any money again, the secret lies in compounding and going slow and never losing all the money or a big chunk of money!
Having a retirement fund is today everyone’s necessity, setting aside small amounts and investing them with competent financial managers is very important from a young age like 20 so that when a person grows old or can’t work he can use this amount when he is not able to earn from his job.
The power of compounding slowly works on turning small amounts to huge and mind boggling sums of money. No wonder Warren Buffet turned small amounts to billions of dollars through the rule of never losing all the money, never taking risks, arbitrage betting, value investing and never showing off or wasting money. Floyd Mayweather for example spends heavily and makes a show of his money but such has never been the case of a person like Warren Buffet. Habits of life are moved over in financial world as well, hence money should always be respected, needs should be controlled, wastes should be prevented, otherwise financial bankruptcy creeps in through over spending, flashy lifestyle, wasteful expenditure examples are several lottery winners, if only lottery winners never spend even a dollar of their jackpot and put all their money in fixed deposits they will still have a lot of money. For example a person wins 10 million dollars in lottery, now he makes a fixed deposit with a bank for 9 million dollars and gets just 1 percent per annum he still will have over 90k USD extra every year. However people spend heavily, then keep chasing losses with bigger and bigger risks.
VGET Capital Management 