Latest news with #longtermthinking
Independent Singapore
2 days ago
- Business
- Independent Singapore
The millionaire mindset: 3 powerful ways wealthy people think differently
What distinguishes those who create long-term wealth from those who live paycheck to paycheck and struggle financially? According to a recent article from New Trader U, it's not just earnings, inherited wealth, education, or pure chance. The difference lies in mindset, how people approach life, and what they think about money, opportunity, and how they spend the most valuable resource on earth—time. Research indicates that self-made billionaires have espoused mental agendas that unswervingly direct their decisions and choices toward continuing success. These aren't innate qualities or strictly protected secrets; these are hands-on, easy-to-learn methods of thinking that anyone can acquire and develop. Here are three fundamental patterns of thinking that distinguish wealthy individuals: Long-term advanced thinking People of permanent wealth are reinforced by a mindset that favors 'long-term' over 'short-term.' Instead of pursuing instantaneous rewards or freaking out about short-term expenditures, they ask—How will this decision affect my finances 10 or 20 years from now? See also The Cheapest & Most Expensive Areas to Live in Singapore This future-focused mentality changes their behavior and, ultimately, their actions. Rather than indulging in fleeting pleasures, they invest in growing assets, such as businesses, stocks, and real estate. They also understand that time is the ultimate leverage factor. In their professions, they are more into learning, gaining experience, and networking. They understand that acquiring experience may not immediately yield compensation, but that it lays the groundwork for future success. The capacity to postpone self-gratification is a trademark of sustainable wealth-building. 'It can't be done' vs. 'This is possible' Where others see impediments, the wealthy see launchpads and building blocks. This approach is particularly evident in times of economic recessions, failed attempts, and personal disappointments. While most would react with distress or defeat and then withdraw completely from life, financially successful individuals view these episodes as remarkable opportunities to innovate or transpose for advancement. They meet challenges head-on and with curiosity, not panic, asking, 'How can I benefit from this?', 'What can I learn from this situation?' rather than 'Why is this happening to me?' Wealth machines vs. paychecks The wealthy don't just work for money; they build systems that make money for them. While many people focus on increasing their pay, wealthy individuals concentrate on accumulating assets that generate passive income. This mentality frees them from the trap of swapping time for money that can lead to financial independence. All financial decisions are sifted through a simple lens—Will this multiply in value or create income? If not, they move on. Mindset: The first investment These three thought patterns are not kept back for a select few. They're psychological habits anyone can espouse and implement. The good news is that you don't need so much wealth to begin thinking like a well-heeled individual. Start with one change—ask better questions, meet a challenge head-on, or use your time on something that will pay off in the future. When you're consistent, your mindset can become your most treasured asset on your ride to financial independence. See also What Are Singapore Treasury Bills and Are They a Good Investment?
Forbes
27-05-2025
- Business
- Forbes
Warren Buffett's Masterclass In Leadership Beyond The Founder
While Warren Buffett's six-decade run at Berkshire Hathaway delivered shareholder returns of an astounding 5.5 million percent, the real story isn't the math — it's the model. Behind the headlines and investment decisions lies a deeper system. Buffett built an institution where long-term thinking, autonomy and culture guide every decision. That model won't work for every company, but the underlying lessons apply to all boards, especially those navigating leadership transitions, growth or complexity. At Berkshire, leadership and culture are rooted in accountability, transparency and owner-like thinking. Buffett has spent decades developing complete managers, not temporary deputies. This is why Berkshire's model outlasts flashier corporations. The numbers astonish (returns of a compounded 20% per year, vs 10% for the S&P 500), but the lesson is simpler: true leadership isn't measured by tenure, but by building institutions where excellence becomes inevitable. Buffett's mantra — 'Our favorite holding period is forever'— wasn't just investor talk. It was a strategic lens. He avoided trends, chased no hype and focused on companies with long-term competitive moats. Boards often pressure management for quick wins. Buffett resisted that. He built Berkshire around businesses that could last — not just perform. Equally critical is knowing what to avoid. Buffett's rule that 'Really successful people say no to almost everything' forced Berkshire to ignore complex deals outside its circle of competence. Many companies spread themselves thin chasing unrelated ventures. At Berkshire, the filter was simple: if it wasn't in their circle of competence, they passed. Boards can apply this by pressing for clarity: Boards must adopt similar discipline, rejecting shiny distractions that dilute focus. Finally, alignment matters. Most CEOs are paid for short-term stock performance, or annual bonuses. At Berkshire, leaders win if long-term value compounds. Boards should rethink incentives to match long-term goals. Buffett called capital allocation a CEO's most important job. At Berkshire, it's not just finance —it's philosophy. He maintained at least $20 billion in cash, not out of fear, but to stay ready. When crises hit, as happened in 2008, others froze. Berkshire moved fast, investing on favorable terms. Buffett's rule: 'Be fearful when others are greedy, and greedy when others are fearful.' This only works with discipline. Berkshire avoids overleveraging. Buffett often joked: 'I've seen more people fail because of liquor and leverage.' He meant it. Debt removes options. When downturns hit, too much leverage turns strong companies into forced sellers. The principle: protect your ability to act when others can't. That's when the biggest gains are made. Capital is not just about investing. It's about timing, flexibility and restraint. Boards must treat it as strategy, not just a CFO concern. Many conglomerates fail because they centralize everything. They try to force synergies, standardize systems and control decisions from headquarters. Berkshire did the opposite. It runs 60+ businesses with near-total autonomy. There are no centralized marketing campaigns. No forced integration or common systems. No synergy targets or coordinated go-to-market strategies. Just trust and accountability. Buffett called it 'professional neglect' — an interesting way to describe the absence of bureaucracy. The Omaha office is tiny and focused on two things only: capital allocation and protecting the culture. This works because Buffett hired people he trusted. Business unit leaders know the rules: protect your moat, send excess cash to HQ and uphold Berkshire's reputation. Boards often overbuild processes to control risk. At Berkshire, the control comes from clarity and culture. Simpler rules, stricter values. The lesson: culture scales better than control. Trust your people, and hold them accountable to the right few things. Buffett's final leadership move — handing over to Greg Abel — was the product of decades of quiet planning. He signaled his intentions years in advance. In 2006, he wrote that three CEO successors were already identified, and the board knew who would take over if needed. No last-minute scramble and no uncertainty. Abel's path was typical of Berkshire's style: earned trust over 20+ years, proven cultural fit and strong leadership across different businesses. Buffett focused on character over credentials ('I never look at where a candidate has gone school'), observing how leaders handled pressure, made decisions and earned followership. At the same time, he wasn't afraid to bring in outsiders. Todd Combs and Ted Weschler were external hires, brought in to expand the leadership pipeline. External benchmarking ensured Berkshire stayed sharp — and that internal candidates were tested, not assumed. When the time came, Buffett's announcement was simple: Abel would become CEO. The market barely flinched. That's what good succession looks like: prepared, aligned, uneventful. Buffett's biggest legacy isn't the returns. It's the model: a culture that lasts beyond the founder. Boards should resist the temptation to chase the next Buffett. Instead, they should build structures where strategy, capital, leadership and trust compound over time. That means asking tough questions early, aligning rewards to long-term success, and treating governance as stewardship, not control. As Buffett once said: 'Someone's sitting in the shade today because someone planted a tree long ago.' Great boards, which think decades ahead and act accordingly, are the planters. By Nuno Fernandes, Professor of Financial Management at IESE Business School.
Bloomberg
22-05-2025
- Business
- Bloomberg
Why Duolingo Won't Add More Ads
Chief Future Officer Language learning app Duolingo could raise revenue by showing more advertisements to users of its free product. But the company's focus on long-term thinking over short-term results has led CEO Luis Von Ahn and CFO Matt Skaruppa to resist the temptation. They explain their reasoning to Tim Stenovec on Bloomberg Chief Future Officer. (Source: Bloomberg)
