Hi. Everyone, Mr. Minion here.
Sorry for the lack of updates in the last few weeks, as mentioned in one of our previous posts, Mrs. Minion and I went to Tokyo, Japan for a leisure trip. We will be following up with reviews and tips about traveling to Tokyo in our Japan travel review series.
Today’s topic is about getting the little things right. As we take our first step towards early retirement, it is important that we do the little things right. It is not advisable to just focus on the big-ticket items. Why?
Firstly, on certain occasions, getting the little things right have a strong influence on the probability of you getting the big thing right. Here is an example. If you don’t save consistently, how will you have enough capital to take advantage of market corrections? Some of you may suggest leverage, but that is playing with fire. Someone who leverage within their means (which is influenced by the amount of savings he has) and someone who leverage beyond their means reacts very differently during investing and trading.
Secondly, as William H. McRaven once said “”If you can’t do the little things right, you will never do the big things right.” That is rightly so. If you can’t be trusted with the small ticket items, how can you be trusted with big-ticket items? You’re not going to ask someone who can’t even get the numbers on the spreadsheets right to model the valuation of a company, will you?
Last but not least, making money in the markets is more about winning small multiple times, rather than winning big a single time. First of all, in order to win big, you need to put in big money. Not everyone has that kind of money Second of all, it is easier to win small than to win big and obtaining multiple small victories may have a greater effect on your assets as compared to obtaining one big victory. For example, compare someone who aims to make 10% on their money yearly by investing into an index or a basket of stocks for his working life (20 years) to someone who aims to make it rich by making 600% on a single stock. Who makes more money? Of course, it is the person who aims for small victories (1.1)^20 = 6.7x VS 6x on large victory.
So let us all start by getting the little things right.
Until next time then.