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Showing posts with the label compound effect

Just my thoughts #0811

Influence of Time: Time has the power to change the values of this world and people’s minds. The passage of time—past, present, and future—is only significant to humans, and if there is an all-powerful God, it likely holds no meaning for Him. Time accomplishes many things, and God rules the world through it. As time progresses, people change, and the world changes as well. When time flows, the world transforms, and it is natural for humans to adapt to these changes. My attitude toward time influences my values, which in turn shape my actions and perspectives. My values do not influence time; rather, time influences me. Observation is not just seeing the world but also seeing myself. It is a wise attitude to judge both myself, who is affected by changing times, and the world, which is already in flux. - Joseph’s “just my thoughts”

Just my thoughts #0709

A baseball batter cannot hit a home run every at-bat. You might make a lot of money once with luck, but that’s a fleeting way to earn. If you generate a lot of money without even preparing a bowl, you might end up unhappy. The reason for emphasizing the ‘ compound effect ’ in investing is because it’s one of the few sustainable methods mankind has experienced. However, compared to our greed, ‘ compound interest ’ seems like a small rate of return right now, so many people break the rules they need to follow and take risky investments , putting themselves in danger. We can’t hit a home run every day. Valuing small profits and working to protect them will bring us good fortune. Greed leads to destruction. - Joseph’s “just my thoughts”

Just my thoughts #0396

Warren Buffett, who has amassed 99% of his wealth since the age of 50, revealed that the secret lies in “compound.” When you lend money, interest is added to the principal as income. Initially, interest is applied only to the principal, but compound interest is applied to both the principal and the accumulated interest. Therefore, at first, it seems negligible, but over time, significant wealth growth takes place. The same principle applies to reading: even if your reading speed is slow, consistently reading just a few books each day can lead to a wealth of knowledge. After a year, this accumulated knowledge creates a network effect, allowing you to quickly absorb new information. Consequently, your reading speed increases dramatically, leading to an exponential growth in the volume of material you can handle. This exemplifies the compound interest effect. Even small, consistent actions taken daily can build up and create a compound interest effect over time. Cartoonist Lee Hyun-se sta...