First, let me wish you a Happy New Year!
May 2025 be a fruitful year for you and your family.
Often, at this time, we’ll find investment-related content posted across various platforms such as YouTube, Facebook, Instagram, XiaoHongShu, X, and TikTok, where their titles would be similar along the lines of “How to Invest in 2025?”. With ChatGPT, I can come out with numerous article titles as follows:
a. Top Investment Trends to Watch in 2025
b. Common Investment Mistakes to Avoid in 2025
c. Top 10 Tech / AI / Blockchain / Cloud Stocks To Watch Out for in 2025
d. How to Navigate Through the AI Boom in 2025?
e. Top 5 real estate markets to focus on in 2025.
I’m only limited by my creativity.
As a content writer myself, I understand that such titles and content are published to attract your attention. It is about the eyeballs that count in social media.
However, as one who is passionate about investing, I often wonder: “Are most of these contents helpful to investors?”.
Think about it. If I have been successful for years prior, in 2024, 2023, 2022, 2021, … and so on, is there a need to make dramatic changes to my investment strategy? Do I need to know the hot topics in investing in the present to remain successful?
The answer is nope.
Take Warren Buffett as an example.
He has been practicing value investing for decades. His investment track record is superb. He is known to have compounded wealth by 19+% per annum for six decades. In perspective, $1,000 in capital would multiply by 30x to $32,429 if it is left to be compounded at 19% for 20 years. So, if that’s your money, you’ll probably want to leave it and not interrupt with its compounding.
The key to investing success is to find good assets, sit on them and do nothing.
There are many investments that Buffett own which contribute to his success.
Here, I’ll highlight just two of them.
The first is Coca-Cola.
Buffett, via Berkshire Hathaway, bought 400 million shares of Coca-Cola, paying a price of US$ 1.3 billion in 1994. For 30+ years, Coca-Cola has not only delivered rising dividends to Berkshire Hathaway (In 2022, it collected US$ 704 million in dividends. Imagine the annual dividend yield from Buffett’s original costs), but also, had contributed huge capital growth as its holding on these shares are worth some US$ 25+ billion in 2023.
The second is American Express.
It was bought at US$ 1.3 billion in 1995. Ever since, dividends grew from US$ 41 million (initial dividend yield: 3.1%) to US$ 302 million in 2022 (dividend yield: 23.2%). These shares are now worth US$ 22+ billion in 2023.
It would be insane for Buffett to forgo his Coca-Cola and Amex to chase “fantasies” published as investments and promoted on social media.
So, how would I invest in 2025?
For me, since I have been practising value investing for years, I would just continue to add more shares into my portfolio. If my stocks continue to deliver earnings growth, I’ll keep them. That’s it on how I like to invest in 2025, 2026, 2027 and most likely, years to come.
However, if you aren’t successful in the area of investment, I believe you need to realise that the article titles and content produced above are for entertainment. You may read, view, or consume them. Just know that these are written for your attention.
Typically, what works well in the long-term is to first know your financial position, temperament & preference when it comes to investing. Understanding yourself is key. Then, you may learn, pick up and practice real investing skills: accounting, valuation and portfolio management to enhance your chances of investment successes.
By next year in 2026, you won’t find meaning to articles or content like “How to Invest in 2026?”.
That’s it for now.
May you continue to build upon your successes achieved in 2024 for 2025 and beyond.
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