When Microsoft (NASDAQ:MSFT) co-founder Bill Gates speaks, people tend to listen. Not only is Gates an acclaimed businessman and investor, he’s also a well-known philanthropist who’s made it clear that he’s passionate about educating others.
As such, it pays to take a lesson or two from someone who’s managed to accumulate well over $100 billion in his lifetime. Whether you’re a new investor or have been putting money into the stock market for years, here are a few key pieces of advice to take away from one of the most innovative public figures of our time.
Image source: Getty Images.
1. “It’s fine to celebrate success, but it is more important to heed the lessons of failure.”
Anyone who invests money is apt to see both gains and losses. And while it’s perfectly OK to be happy when an investment turns out to be a huge moneymaker, it’s also important to be humble enough to learn from your mistakes.
Think about some of the investing blunders you’ve made in the past, and aim to grow from them. Maybe you were once quick to unload a stock that started to underperform, only to lock in losses and have that same stock recover several months later. You wouldn’t be the first person that happened to, but the key is to learn from your failures as an investor rather than pretend they never happened.
2. “If you were born poor it’s not your mistake, but if you die poor it’s your mistake.”
You can’t help the circumstances you’re born into, but investing makes it possible for anyone to grow wealth. Imagine you’re 25 with just $500 to your name. If you invest it today and leave it alone for 50 years, and your investment generates an average annual 7% return (which is a few percentage points below the stock market’s average), you’ll wind up with close to $15,000.
Now, imagine you put $500 into a stock portfolio today and continue putting in $25 a month for the next 50 years. Assuming that same 7% return, you’ll wind up with close to $137,000.
3. “To win big, you sometimes need to take big risks.”
Many people shy away from the stock market because they know it’s volatile and worry about losses. But if you’re looking to grow wealth, you’ll need to take on some amount of risk — there’s really no way around it. The good news, however, is that the stock market has a long history of recovering from downturns and coming out ahead, so if you adopt the right strategy — namely, to buy quality stocks and hold them for the long haul — you’re more likely to make money than lose money.
4. “I never took a day off in my twenties. Not one.”
It may not be easy to mimic Bill Gates’ work ethic, but here’s an easy way to put your money to work every single day during your 20s: Invest it. You can do so in a traditional brokerage account or in a tax-advantaged retirement savings plan, like an IRA or 401(k). If you make a point to invest from an early age, you’ll have an opportunity to earn money every day so that by the time you’re older, you’ll have a lot of it.
5. “Patience is a key element of success.”
People who buy stocks with the goal of making a quick buck tend to get burned. If you want to succeed at investing, take a long-term approach and prepare to exercise patience. You may not see the gains you want in your investment account in a year, two years, or even five years, but if you load up on quality stocks and leave your portfolio intact, your patience is likely to pay off over time in the form of substantial gains.
While you may not have close to the same level of wealth as Bill Gates, you can still learn a lot from him. Take the above advice to heart, because it could set you on a very financially rewarding path.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
