We have all heard the story of someone who turned a small capital into a huge fortune in the stock market. But is it true that 1 billion rupiah can grow to 500 billion?
Budi, an investor who wants to double his money, is faced with two choices: fast trading or long term investment. Without hesitation, he chose the second option. He knows that patience is the key to building true wealth.
Instead of looking for instant profits, Budi chooses quality companies and lets his investments grow over time. He also understands its importance dividend reinvestment, where any profits received are reinvested to accelerate the growth of its portfolio.
However, Budi's investment journey was not always smooth. In 2008, the world was hit by a major financial crisis, and the value of shares plummeted drastically. Many investors panicked and sold their shares, but Budi remained calm.
He understands that crises are a natural part of the stock market and instead see it as an opportunity to buy more quality shares at low prices. He is confident that the market will recover over time.
Sure enough, a few years later the market began to recover. The shares he owned soared in value, and thanks to the effects compounding—where profits continued to grow above previous profits—Budi's investments grew rapidly.
He continues to apply investment discipline, is not tempted by speculation, and always focuses on long-term strategies.
After 25 years of disciplined investing, Budi's money has now reached 500 billion rupiah. It's not about luck, it's about time, strategy, and patience.
Although this story is fictional, the principle is real. Warren Buffett himself once said that if one starts with large capital and implements a disciplined long-term investment strategy, extraordinary results can be achieved.
If Buffett started Berkshire Hathaway with 100 million dollars, then within a few decades, the value of his investment would double to 4.4 trillion dollars.
The moral of the story? The stock market is not a place to get rich quick, but a place for those who are patient, disciplined and understand the true value of an investment.