Advice to start investing:

Start young.

The big thing about investing is that we started building this little snowball on top of a very long hill. We started at a very early age rolling the snowball down.

The nature of the compound interest is that it behaves like a snowball of sticky snow. The trick is to have a very long hill.

If I am to start out today with $10,000, I would do exactly the same way. I would start going right through companies. I would focus on smaller companies because that would be working with smaller sums and there’s more chance that something is overlooked in that area. 

You have to buy businesses or a little piece of businesses called stocks and buy them at an attractive price. You can’t expect anybody else to do it for you. You’ve got to know what you know and what you don’t know.

Within the arena of what you know, you have to pursue it very vigorously and act on it when you find it. 

You can’t look around for people to agree with you. You can’t look around for people to even know what you are talking about. You have to think for yourself. 

The hard part of the process is the first $100,000. The people who get there quickly are helped if they are passionate about being rational, very eager, and opportunistic, and steadily underspent their income grossly.

About me and why this series:
I got a life-changing experience studying Warren Buffett’s annual letters in 2013 after 10 years of speculating, market timing, charting, and forecasting. I started investing in the Vietnamese stock market in 2015 with what I saved from my engineering job. In 2018, I decided to study Warren Buffett’s investing again by going through all of available Berkshire Hathaway’s annual meeting videos. It has been another life-changing experience. Warren Buffett’s teaching is a real germ and yet not many people replicate. Hence, I am committed to share what I learned.

You can subscribe to my blog to follow the series of what Warren Buffett has been teaching in his annual meetings. I attempted to modify but keep as much as possible what he spoke.

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Posted by Hoan M Do

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