Rule No.1 Never Lose Money. Rule No.2 Never Forget Rule No1. -Warren Buffett.
We are in the period where Interest rates on risk free securities which offer guaranteed returns are declining rapidly, leading to lesser earnings on investments and inflation also is increasing continuosly day by day reducing the purchasing capacity of the people by reducing the value of money we hold or saved.
As the interest rate we earn is less than the rate of inflation it is obvious that our money is earning negative returns and there by making us poor with every passing day. so we are losing our money, which should not at all happen as per Warren Buffett Rule No. 1.
The overall lower interest rates has created a need for many to look into one of the attractive investment option i,e Equity which seems to be very attractive because of it's easy reach nowadays and also requires a very low capital to begin with unlike Real estate which requires heavy capital to be inducted and also is not liquid as equities. But making gains in stock market is not a easy go, most of the people end up with losses and never return to market again. As it is said by Warren Buffett, “stock market is a device for transferring money from the impatient to the patient”. One has to have extreme or say immense patience to create a healthy wealth from the stock market because a stock may provide 0 returns in 10 years and also 10X returns in just 1year and if you don't possess that level of patience you are going to in trouble for sure but yes you may earn quick money from the markets but one who fears the quick money and concentrates on long run will be the real winner.
Patience is the key or you can say a kind of power to success and to create wealth from the markets as per most of the successful investors. One can build a great corpus by just investing in some good businesses and giving reasonable time for the business to grow. If one cannot identify good businesses he can just rely on bluechip stocks and invest in those companies which already have a great track record of the past. It is said that there is a short term risk for owning stocks but there is a long term risk for not owning stocks.
We can see Warren Buffett has made most of his wealth after he attained the age of 50 and that is the magic of compounding retail investors tend to miss, more the time you spend holding quality stocks higher will be the returns. Always remember Rome was not built in a day but Hiroshima and Nagasaki are destroyed in a day.
No one can be Warren Buffett in terms of skills but we can learn and adapt his level of patience for sure if we practice and decide to do so.