The long game

Investing is a long game; it takes a long time. Even the smallest, simplest investment left to accumulate over time will make money. At this time, my belief on investments is that you buy an investment (property, stocks, etc) and hold on to it for a long time, 15 years or more. Then, the rewards start to flow in. The current economic crisis was caused in no small part by banks not waiting a long time to get their money for mortgages like they are supposed to do, but instead taking a lump sum, and selling the debt on to someone else. Fast, easy money which only resulted in one of the biggest financial crises of all time.

I have talked to many older people who have extensive property investments which they paid off over a long time, immigrants etc, and in many cases they had no idea the property would increase in value so much. They simply thought it was better to own than to rent, and over the long term, they did fantastically. With property, a repayment mortgage is always best, as you will own the property after 25 years, and all the income will be yours alone. Interest only mortgages are a joke as you will never own the property, and the bank can raise the interest rate and destroy your finances at any time they choose. Repayment mortgages are always best, and if you can't afford it, don't do it.

The best books I've read on investing so far are: The Intelligent Investor by Benjamin Graham, and the essays of Warren Buffett. Buffett says Grahams book is the best he most recommends. Buffett invests for the very long term. He did not try to get rich quick, and ended up becoming the richest man in the world. The long, boring, undramatic way.

Money making should not be flash and fast. It can be slow and steady with the odd risk along the way. The more money you accumulate, the more chances become available to accumulate more. You can't do it when you first begin. You have to wait for it, for a few years by planning and saving money. You have to play the long game.