Blog’s muse aged 9.
Blog’s muse aged 36.
Today I will talk about something very philosophical and that says a lot about our life in all aspects: THE PASSAGE OF TIME.
I see that this subject is largely ignored.
In the process of enrichment, WE NEED TIME.
It is no use choosing GOOD COMPANIES, GOOD INVESTMENTS and wanting to get rich overnight.
The good investor has to know this and controls their anxiety. If getting rich was easy and fast, everyone would be.
One of the differentials of the good investor is PATIENCE.
This in addition to making him calm is going to avoid turning assets (buying and selling many assets) and thus will hamper his enrichment process.
The old Buffet said, “You can not have a baby in a month getting nine women pregnant at the same time.” Nice phrase.
A lot of people come in the stock exchange and want to get rich soon, these are the providers of the system, it is on top of these that the great fortunes are made.
Another statement from Buffet “The market was made to take money from the hustlers and transfer it to the patients.”
Another thing that leaves me peaceful. I believe that I am positioned in good companies. No use wanting a result tomorrow, I HAVE TO WAIT.
In my current stage of life, I imagine that I bought my retirement there in the old age, waiting for these investments to mature, after all, if you play R$ 800,000 (253,970) in a Treasury Direct (long government bonds) title this week with a 40-year maturity, It’s like you bought your retirement, that’s how I feel now.
The current challenge now is to bring my retirement more present, closer to me, to gain time on the timeline, increasing my monthly passive income and stabilizing the portfolio.
Look at the old Buffet, about my age, at 32 he had managed to get in his first million (at that time, which would be at 11 million today), that is, he was a prodigy without a doubt. After more than 50 years it reached 72 billion.
Okay, it’s an extreme case just to exemplify. I’m using the Buffet just to illustrate:
There are hundreds of thousands of investors who have reached the millions already at a very late stage of life.
This is for you to realize how much the TIME effect is ignored. Wh
at I want to tell you is just wait. There’s no point in keeping moving all the time. That does not work.
If you’re going to be breaking your head, look for something else to do, rather than picking on your wallet all the time. There is no magic, there is no punch in the stock market, in life, come with everything, “all in”.
Remember that there is a lot at stake, your peace of mind, your future, your whole working life and the quiet of your family.
See how time has improved the muse of the blog. It was much better, was not it?
See how time has improved you. If you’ve come this far, know that you’re a great reader and a committed person.
I have lately posted the upward curve in my equity for the last 4 years. In 2016, the best year of my financial life, it rose from R$ 400,000 (126,984) to R$ 1,000,000 (U$317,460). Since this had never happened in my life, lately I thought about the size of the step that was this climb.
Nowadays with equity of almost 1.2M (U$381,000) if it is corrected by 10% until December 2017, it means that I will have gained 120,000 (U$38,000) by adding to it, okay it may have been just the cost of inflation, but it is still Money, it’s practically a little more than all the money I’ll spend on my bills throughout the year 2017.
If this year is very good again, and I can get a (U$ 158,000) more with this U$ 38,000 correction, it will give another U$197,000 to the equity, and then start 2018 near U$571,500, which in turn, if I can get a correction of 10% over U$571,500 this will generate U$57,000 in yields over 2018, which will be almost twice as high as my annual spending.
That is, 2017 will be a VERY decisive year for me. I need to keep the line, the work, the discipline, the contributions, the resignations, the studies, the reading and the firm planning to achieve this.
I have an important 3k debit that will arrive last in March, THANKS!
It is very bad to have high pay to pay, even more in that amount. Hardly in my life will I get into debt again, I think it sucks, especially because I had to leave in checks and I always wonder if there will be money in the account to cover it.
My car is going to do 100,000 km, well, and since it’s almost 10 years old, it’s going to win a SUPER WASH with POLISH and wax to celebrate the 10 years age, and I’ll also put that fluid in the radiator to switch with the water.
I hope that by providing Fixed Income, real estate funds and stocks abroad, more stable markets, equity volatility will be much more diminished than it once was. I’m trying to bring the curve of my equity in the Efficient Frontier further to the left.
Now talking about the main message of the post, which is the passage of time.
LEARN THAT THE PASSAGE OF TIME IS FUNDAMENTAL.
TIME IS YOUR ALLY. USE TIME TO YOUR FAVOR. TIME ENTERS THE EQUATION OF ALL INVESTMENTS. YOU WERE SO MUCH THERE BACK TEN YEARS AGO (THINK ABOUT IT ) TODAY YOU ARE SO MUCH BETTER, FROM 10 YEARS OLD YOU WILL BE SO MUCH BETTER!
We have to wait for the time to pass to see our investments flourish.
My first dividend was U$10 from Banco do Brasil, I still remember it as if it were today.
It was the first money I ever earned out of my work. Nowadays I have already received more than U$ 666 dividends from the same bank, just buy and wait.
Each share represents a part of a company. Every business is a money-making machine, and generally, the more time passes, the more money they make compared to earlier periods so that this works like a snowball, but that kind of snowball rolls very slowly and It’s up to the hill, the better.
One day in the future you will be on top of the mountain and with a snowball that went up slowly and rose growing.
Be patient, this is EXTREMELY FUNDAMENTAL.
Big hug, Frugal.