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Presenting to You the “Dragon Scroll” of Investing…

One of my favourite movies has to be “Kungfu Panda”. It is about the journey of an unassuming panda that wants to be the greatest kungfu warrior in history.

He had always wanted to know the secret to kungfu and was finally given the “Dragon Scroll”, which was supposed to contain that very secret.

However, to everyone’s surprise, there was nothing on the Dragon Scroll; it was a completely blank scroll.

This is very similar to what many investors feel when learning about investing.

We are constantly searching to find that one great secret about investing. We read tons of books of great investors and search for clues on how we can become like them as well. However, the truth is there is no secret at all (sorry to burst your bubble!).

Investing has no secrets. All that we need to know has been taught before by many great investors. All of these great investors have their own style of investing and in many cases, they invested in very different companies.

However, one thing in common between all the great investors is that they did not become overnight successes. It took them many years, if not decades, before they reached the pinnacle of investing.

For example, it took Warren Buffett about 15 years of investing to become a millionaire. It took him another estimated 22 years before he amassed a net worth of more than US$100 million.

If there is any secret at all about investing, the secret might be patience. Great investors are people who have stayed on as investors for a long period of time to allow the power of compounding to work its magic. Investors who give up along the way would not be able to enjoy the fruits of investing.

Maybe the “Dragon Scroll” might contain something after all, but it will only have two words: “Be Patient.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.