Gerald Tay

Prudence and Patience is one of the KEYS to a substainable long-term financial success.

I love the quote by Charlie Munger,

"...And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and patience in the past."

Investing is NOT gambling. Just look around you...your friends, relatives, colleuges, pple you heard of, how many times have you heard they have lost money investing in stocks, funds, some investment schemes or properties? I am sure you have as I have. Many wanted quick money and get rich quickly.

Many times, those who have lost more than they have gained often treat their investments as a gambling table. They betted heavily, not even knowing their odds, hoping they may cash in BIG on some lucky streak. When they started to make some money on the table, many however, do not know when to take the money and go. But rather, they continue to bet on, thinking they can win even more. Those who are very lucky, might have a chance to walk away rich. Those who are not, walk away with nothing. Many times, most end up the latter. For those lucky ones, instead of saving up for future opportunities, they splurge their winnings on fanciful cars, luxury items, nice houses and expensive toys. These amatuers begin to think they are like professional investors or gamblers just because they can win big once or twice. They believe luck will always be with them and keep winning them big money. Unfortunately, many of these people lost even more than they had bargain for.

If you have ever spoken to those who have been millionaires before and they have gone bankrupt, they can testify to this. Many of them whose wealth hardly last more than 10years. Why? Because many of them got lucky through circumstances, but were not able to substain their wealth due to lack of finiancial literacy, prudence and patience. They only wanted instant gratification to satisfy their egos and tell the world they have arrived.

The real rich, if you know them, many lived humbly and simple lives. Protecting their capital is their utmost priority. My late wealthy grandfather, who lived till 93 years old,was a great example who taught me this. He never gambled, smoke,drink or indulge in any vices. Even though he was a multi-millionaire with mutliple properties and businesses, he lived in his old house with a big piece of land for more than 40years without ever m