Timeless Investment Quotes That Remains Relevant And Impactful To Me

As we step into the New Year with a new start, it is probably a good time to look back and revisit some timeless investments quotes and advices that remain relevant and impactful to myself till today.  I believe these advices can help myself remain focus in my investment journey this upcoming year, while offering guidance, clarity and inspiration.

1)     "Do Not Save What Is Left After Spending, But Spend What Is Left After Saving." – Warren Buffett

Residents in Singapore face high costs of living, but the principle remains universal, which is to prioritize savings and investments before discretionary spending.  It will be good to be disciplined in managing money, which in my order of priority, is to contribute to Central Provident Fund (CPF), set aside a comfortable amount for recurring investments in shares or ETFs, and finally set aside the fixed amount meant for mandatory expenses, before allocating the remainder for discretionary expenses.

2)     "Time In The Market Beats Timing The Market." – Kenneth Fisher

Market volatility can be daunting, but staying invested ensures that I do not miss out on potential long-term gains.  Personally this is a painful lesson learnt, especially when I buy and sell shares within my US Growth Portfolio, in an attempt to 'buy high and sell low', only to sell high and witness the markets move even higher.  Experience taught me, and continues to teach me, that buy and hold long term is the best strategy for me as I am no expert in technical analysis and I have no crystal ball knowing exactly where the highs and lows are, therefore as long as fundamentals of the companies remain intact, just let the market forces work its magic.

3)     "Compound Interest Is The Eighth Wonder Of The World.  He Who Understands It, Earns It; He Who Doesn’t, Pays It." – Albert Einstein

Starting early is key to benefiting from compounding returns.  Whether it is investing in individual stocks, ETFs like VOO, or dividend-paying REITs, the earlier you begin, the longer your 'time' runway.  This enables the invested capital and reinvested dividends to compound.  The returns may seem insignificant in the first few years of compounding, but when given sufficient time, the returns will be astronomical!

4)     "Investing Should Be More Like Watching Paint Dry Or Watching Grass Grow.  If You Want Excitement, Take $800 And Go To A Casino." – Paul Samuelson

Chasing quick gains or speculative stocks often leads to disappointment.  Not everyone has the ability to spot the next Tesla or Nvidia and manage to go 'all-in' to grow their portfolio multi-folds.  I, for one, has no such ability or luck.  Instead, I prefer to focus on steady and reliable investments like the US Big Tech companies or Singapore’s blue-chip stocks or CPF’s Special Account (which offers a steady 4% interest rate).  To me, consistency trumps excitement.  At the very least, it enables me to sleep well at night.

5)     "Do Not Put All Your Eggs In One Basket." – Andrew Carnegie

To many other investors and traders, they may agree more with what Warren Buffett has said before "Diversification is a protection against ignorance.  It makes very little sense for those who know what they are doing".  However to me personally, diversification is critical in mitigating risks.  Probably I really do not know what I am doing, but as long as my investment returns are average, and able to hedge my net worth against inflation, I think I am doing fine.  To me, diversification means spreading investments across REITs, local blue-chip stocks, global ETFs, US Big Tech, cash in fixed deposits or high yield savings account, and finally with CPF as the safety net (therefore I did not, and will not use my CPF for any investments on my own via CPFIS).  I strongly believe that having a balanced portfolio ensures resilience against market downturns.

6)     "In The Short Run, The Market Is A Voting Machine, But In The Long Run, It Is A Weighing Machine." – Benjamin Graham

Avoid being swayed by short-term market sentiment.  Restrain from "fear of missing out" (FOMO) buying when there is too much exuberance in the market where prices rose too far north from moving averages, and conversely, refrain from panic selling when there is too much fear and worry in the market where prices plunged too far south from moving averages.  All these are just short term volatility.  Focus on the intrinsic value of my investment portfolio, whether it is steady dividends from SG Dividend Portfolio or the growth potential from US Growth Portfolio.  Long-term consistency pays off.

7)     "If You Don’t Find A Way To Make Money While You Sleep, You Will Work Until You Die." – Warren Buffett

On top of active income from my primary job, passive income streams, such as dividends, rental income, or CPF interest, are crucial to achieving financial independence for myself.  This is achieved by building a portfolio over time, that is able to gradually generate meaningful income even when I am not actively working.

8)     "Wealth Consists Not In Having Great Possessions, But In Having Few Wants." – Epictetus

Adopting a mindset of contentment can significantly reduce lifestyle inflation, and with lower needs and expenses, financial independence can be attained more easily.  Simple habits or lifestyle changes like cooking at home, using public transport, buying some necessities in Johor Bahru instead of in Singapore, or even simple changes like buying house-brands, can help to accelerate my path to financial independence.

9)     "The Goal Isn’t More Money.  The Goal Is Living Life On Your Terms." – Chris Brogan

Personally, financial independence, retire early (FIRE) is not about hoarding wealth but creating a lifestyle that aligns with my personal values and goals, one of which is to return back to Johor, Malaysia, and get to spend more time with my mum and being there for her, bring her to her annual clinic visits for check up etc.  Focusing on building a sufficiently huge portfolio that generates sufficient income helps to support these dreams.

10)     "Someone’s Sitting In The Shade Today Because Someone Planted A Tree A Long Time Ago." – Warren Buffett

This is one quote that hits me in the heart, because I am where I am now because of my dad.  I have mentioned my mum frequently in this blog but not my dad, as my dad has passed before I started this blog.  However, financially, my dad is definitely an inspiration to me.  From a humble background, he single-handedly worked his way up the ladder and sustained a 6-member household with a single income.  Growing up, I do not feel under-privileged as my dad provides sufficiently to my brother and myself.  After his passing, my brother and I inherited his assets, and this process showed me how well my dad has planned for the long-term carefully and intelligently.  However, health is probably something he overlooked.  

Following my dad's footsteps in the way I manage my finances, I believe long-term planning is very essential.  As such, even though being a self-employed person only require me to do mandatory contribution to my CPF Medisave Account (MA), I still performed voluntary cash top ups to all 3 accounts in CPF.  In addition, I also consistently grow my investment portfolio, instead of splurging every cent, to ensure that I may achieve a secure financial future.  I believe my future self will thank the current me in time to come.  Barista FIRE, here I come...!