With the $?????? ?????????????? ?????????????????? jackpot up for grabs this Thursday, it’s tempting to daydream about instant riches.?
I often encounter questions about the best ways to build and sustain wealth. But instead of relying on luck, let's talk about strategic wealth building and the power of compounding.
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Is Warren Buffett famous due to his impressive annual returns (over 20% per year) or the magic of compounding over a long period?
? Warren started investing at the age of 10 and continues well into his 90s, accumulating a net worth of approximately $??????.?? ??????????????.
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? If he had started investing in his 30s, he would have retired at 65 with around $???? ??????????????, even with the same returns.
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? Of his current wealth of $137.3 billion, $?????? ?????????????? ?????? ???????? ?????????? ?????? ???????? ????????????????.
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Let’s compare Warren Buffett to Rick Guerin, who was equally smart but, in a hurry, to get rich. Rick used margin loans, and during the market downturn of 1973-1974, he faced margin calls and had to sell his Berkshire stock to Warren for $40.??While Rick didn't survive the unexpected events, Warren did because he focused on long-term survival and controlled his cash flow.
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Think of cash flow management as the heartbeat of your financial health.??As our clients' Family CFO, we help families take command of their cash flow, optimising the fuel for their financial growth. Our strategic approach enables you to handle emergencies, capitalise on growth opportunities, and create a lasting legacy.
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Survival is crucial, and managing cash flow is a vital component of it. Once you have your cash flow under control, you unlock the door to the 8th Wonder of the World: Compound Interest.
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Retired
1 个月I’m not sure about risk-free. I believe there’s a pretty good chance that some day Democrats will try to ban it as too violent with too few opportunities for women.