When the global stock market fell, even the greatest investors portfolio also follow suit.

A 40% drop was what hit Warren Buffet’s investment portfolio ?; arguably the greatest investor at the time, when the global stock market fell back in 2008.
Today, Warren Buffet’s net worth is $116 billion in May 2022 ?, so it’s easy to disregard the staggering amount his portfolio lost during the Financial Tsunami of 2008, which was an eyewatering $25billion in less than a year.
It’s understandable that we’re not as rich as Warren Buffet, hence seeing our portfolios plummeting will lead to a rush to sell off all our stocks to avoid being consumed by losses. While we also know that entering the market when it has bottomed is the best time to do so, catching the bottom is almost an impossible feat.
So, instead of trying to catch the bottom, here are two lessons we can learn from Warren Buffet when growing our wealth.
? 99% of Warren Buffet’s wealth was earned after his 52nd birthday.
“My wealth has come from a combination of living in America, some lucky genes, and compound interest,” he once wrote.
Patience is the key to investing like Warren Buffet, but it is one of the most difficult tasks for many investors due to the influence of social media postings from Financial Influencers on how they build up their net worth over a short span of time ⏰.
? Compounding is not a straight line
Businesses with great business models and moats can also fall when a financial crisis hits. Because of this, we should not expect compounding to be a straight line all the time.
Take it from the master himself; Warren Buffet ignored whatever was happening to the market and continued to invest using the power of compounding. With this model, he was able to turn his net worth from $5,000 at the age of 14 to $58.5 billion at the age of 58.
If you believe in the power of compounding like Warren Buffet and want to grow your portfolio during this opportune time due to the market volatility, feel free to click on the link in the comments below, and let’s explore further.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Wong Kum Soon 王锦顺

As a former Army Officer turned Financial Consultant, I live by the principle: “If we fail to plan, we plan to fail.” This military precision forms the foundation of my approach to financial planning, helping professionals and civil servants secure their financial independence.

Combining my military leadership experience with MDRT recognition, I transform complex financial situations into clear, actionable plans. My mission is to guide young professionals toward financial independence by 50, while empowering those in their 50s and 60s to pursue their passions. As a caregiver to elderly parents, I deeply understand the importance of comprehensive retirement planning.

Beyond my professional role, I serve as Vice President of a Cantonese Association and actively volunteer in my church. I create a thoughtful space where we can examine your financial position and transform retirement planning into a manageable journey toward financial serenity.

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