Just read this touching news, a real life example of long term stock investing with compounding return, helping an accountant (Mr Loh) to accumulate S$20 millions in wealth when died at 89 years old. He may be a miser, spending little on himself but he is very generous to donate more than S$3 millions to charity organization.
This is the power of compounding return in stocks, assuming 50 years of investing (assuming this investor started investing only at 39 years old), here are return for different compounding rate, return for every $1 invested:
5% compounding: (1+0.05)^50 = $11
10% compounding: (1+0.1)^50 = $117
Even with only 5% growth rate (slow growth stocks), an investor could expand the wealth by 11 times by holding blue chip for long term. For moderate giant stocks with 10% return, the return is 117 times. There is no surprise then why Mr Loh could accumulate so much wealth unknowingly by others.
What impressed me is not his wealth but his “misery” on himself but generosity on others. Money is only useful when it is used when one is still alive. Money is not almighty but if we could become master of money, knowing the skills of both making money and spending money in the right ways, this will lead to a very meaningful life.
Start learning value investing for long term compounding return of wealth with giant stocks. The first step is 4 hours of time in learning in a free course by Dr Tee, what stocks for long term investing, when to buy / sell or holding for life. This is not a sales talk, you will learn solid investing knowledge with investment of your time.
