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Steady Compounding

Advice for the Kids by The Humble Dollar, Benedict Evans Presentation on AI, Oaktree's Howard Marks on Current Markets — 3-Bullet Sunday

Published over 1 year ago • 3 min read

Hey Reader - Thomas here.

Good day to my fellow compounders!

In 3-Bullet Sunday, I share with you the three most interesting piece of article, video or podcast I came across for the week on investing and growth philosophies.

Enjoy!

Invert, Always Invert

This week I was at a panel held by CPF and MoneySense for new investors, and it was great to see so many young working adults tuning in. Starting your investing journey early matters more than most people realize, because compounding is a function of both returns and time. You can't control your returns with certainty. But you can control when you start. That alone is a massive edge.

One of the most powerful mental models I keep coming back to is from Charlie Munger: invert, always invert. Instead of asking "how do I become a successful investor," flip it. Ask yourself: what would guarantee I end up in financial ruin?

The answers come quickly. Leverage. Investing your savings in hype and fad stocks. Concentrating your entire net worth into one speculative bet you barely understand. Panic selling during drawdowns and locking in losses permanently. Investing money you need in the short term, which forces you to sell on someone else's timeline. Not having an emergency fund, so one unexpected expense has you liquidating at the bottom. Trading constantly, letting fees and bad timing compound against you. Investing in things you don't understand, which means you can't hold through volatility. Letting FOMO drive your decisions. Or carrying high-interest lifestyle debt while trying to earn 10% in the market.

Now flip all of that around. Avoid leverage. Invest in businesses you actually understand. Keep an emergency fund. Invest money you won't need for years. Stay patient. Tune out the noise. That's not a bad starting framework for building wealth over a lifetime.

It's simple. But simple is not the same as easy.

Compound Steadily,
Thomas

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I. Advice for the Kids by The Humble Dollar

The article "Advice for the Kids" from HumbleDollar offers timeless financial lessons for younger generations.

It emphasizes saving early, living within your means, and investing consistently. The author also highlights the value of avoiding debt, cultivating good spending habits, and understanding that financial success is a marathon, not a sprint.

These principles serve as a guide for building long-term wealth and stability.

​>> Click here to read Advice for the Kids by The Humble Dollar​

II. Benedict Evans Presentation on AI

Every year, Benedict will produce a big presentation exploring macro and strategic trends in the tech industry.

For 2025, ‘AI eats the world’.

​>> Click here to read Benedict Evans Presentation on AI​

III. Oaktree's Howard Marks on China Opportunities, Trump's Cabinet, Market Sentiment

video preview​

Howard Marks interview with Bloomberg:

  • Be less aggressive, but don’t exit the market. Nobody can time the market. Instead, calibrate your behavior between aggressiveness and defensiveness.
  • You can be right about the events but wrong about how the markets react.
  • There are many speculations about the new administration, but the truth is, nobody knows how it will play out.
  • He doesn’t think things are crazy high now and doesn’t believe it is time to get out of the market.
  • China is trying to calibrate the right amount of stimulus. They’re wary of overshooting.
  • Howard Marks sees the Chinese market as a bargain right now.
  • The problem with the property surplus will take time to be absorbed. It doesn’t just disappear with new policies. He believes the government will do what it takes to digest these excess properties and implement policies to prevent this from happening again.
  • When people say China is uninvestable, it becomes music to their ears.

That's all I have for you today!

Till next week.

Thomas

Founder of Steady Compounding

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Steady Compounding

by Thomas Chua

I write about investment concepts, business breakdowns and timeless lessons from super investors. Featured on Business Times, Channel News Asia (CNA) and more. Read by over 10,000 investors.

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