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July 30th, 2010 
JonQ 
Over the last 49 years, Warren Buffett turned an initial investment of $100,000 into $42 billion. During this period of time, he managed to achieve a 24.7% annual compounding rate of return and that also means he doubled his money every 2.9 years for half a century! So, how did he do that? How did he managed to consistently beat the market and all the smartest money managers on Wall Street?
The Graph Below is The Comparison of Berkshire Hathaway and S&P 500
The Beliefs of Successful Investors
This is very much because of Buffett’s BELIEFS and STRATEGIES which is totally contrary to the average investors out there. That is why Warren Buffett is known as a ‘Contrarian Investor’. When most people started selling a stock, he would jump in and buy as much as he could and when everyone started buying and pushing the price up, he would sell for a huge profit. In fact, whenever I invest, I will always have Warren Buffett’s wise words in my mind.
Be Greedy When Others Are Fearful And Be Very Fearful When Others Are Greedy!
While I was at a seminar last night, one of the guys were asking me where am I investing right now and I shared some of the investments that I’ve made this year alone.
Early this year, I was buying into commodities, US equities and also a Real Estate Development project in US. This guy was shocked and he asked, “Why are you investing in US when everything is down right now?”
My answer was simple, “The basic of investment is to Buy Low Sell High isn’t it? While others are fearful of US, I see it as a huge opportunity!”
I’m sure that I’m not alone. Look at this article by The Washington Post newspaper on 15th July 2010. The date aren’t that old, it was published 2 weeks ago.
Government paper gives China tips on buying U.S. property
(Reporting by Zhou Xin; Editing by Alan Wheatley)
BEIJING (Reuters) – Hunting for a property bargain? Worried that prices in China are too high? Have you thought about the United States instead? Let me help.
It sounds like a real estate agent’s pitch. But Chinese real estate investors curious about America needed to look no further on Friday than the Ministry of Commerce’s own newspaper.
The International Business Daily published a series of reports over two pages on whether it’s the right time to buy U.S. property and offering tips on which cities to explore.
“Five years ago, Chinese Americans came to China to buy homes; but now the situation has been reversed,” the newspaper said.
The U.S. National Association of Realtors said China was the fourth-biggest source of international home buyers in the United States, following Canada, Mexico and Britain, in the year ending March 31.
Whereas home prices in many U.S. cities have stagnated or fallen due to the financial crisis, the cost of buying a flat in major Chinese cities has reached stratospheric levels.
As you can see, the Government papers in China is publishing a series of reports on whether it’s the right time to buy US properties and offering tips on which cities to explore.
The newspaper also said, “Five years ago, Chinese Americans came to China to buy homes; but now the situation has been reversed,”
Think about it..
During the Asian Financial Crisis, our stocks were plummeting and the value of our properties in Asia was plunging, who was coming to Asia to wallop our properties? They were the Americans and the Europeans!
Now that these guys are in trouble with the US Financial Crisis and the European Debt Crisis, stocks that I could only dream of like Citigroup which was around $24 was as low as $1, Las Vegas Sands which was around $57 was as low as $1, properties in US which was formerly valued at $150,000 is now valued at $30,000..
Now who should be going over to buy their equities and also their properties?
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It was a good sharring, I learnt something again.
I think I have saved more during early days, but I guess our interest is way too low…
I’m glad you learnt something Lay Geng. It’s good that you have started saving since the early days. So, it’s time for you to start looking for investments that can give you better interest.