The Get Rich Slowly Club

Patricia Howard -

The Get Rich Slowly Club

So much about modern life is about being fast - fast food, fast cars, fast lives and fast investments that promise to make you get rich quick. Yet I’m thinking of creating the ‘Get Rich Slowly’ club.

This is where investors simply invest their money in well established companies, where you understand how that company makes money, is well managed and will be around for decades to come.

This is very much in line with the great US fund manager Warren Buffet’s investment philosophy, who once said, “Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.” I think that’s good advice.

So, this is all about identifying strong solid companies in the market and looking to buy more shares in periods where the market is perhaps down, and their share prices have drifted lower for some reason.

Its about ignoring fads. The cryptocurrency type speculation bubbles that come along every decade. Its about ignoring overhyped ‘buy now pay later’ finance companies that were never going to last.

It’s about refusing to panic. About seeing buying opportunities when others are busy pushing prices lower by recklessly selling and by refusing to sell or buy just for the sake of buying or selling.

Its about understanding what a company does, believing the company has a commitment to good management practices and perhaps better still, has a commitment to be here in ten years.

It’s about letting your money do the heavy lifting and relying on compounding to make sure you are achieving the sort of gains you want to achieve in the long term without taking on unnecessary risks.

Its knowing that if the underlying business you’re investing in grows on average by 10 per cent a year, you will double your money every 7 years, quadruple it every 14 years and grow it by eight times every 20 years.

Its not about beating the market or taking short terms wins. Its about making solid investment decisions and then sitting back and letting those investments do the work for you.