“Patience and Trust: The Keys to Smart Investing, Says Eastspring Vietnam CEO”

In a dynamic and evolving economic landscape, it can be challenging for novice or even seasoned investors to find success in business, investing, or finance. We often get caught up in the “get-rich-quick” mentality, especially when we see others achieving success.

As a guest on The Investors, a talk show co-hosted by CafeF and VPBankS, Mr. Ngo The Trieu, CEO and Chief Investment Officer of Eastspring Investments (Vietnam) Fund Management Company Limited, shared that he, too, had once fallen prey to the “get-rich-quick” mindset like many other investors.

According to Mr. Trieu’s observations, many investors in the stock market tend to focus on a certain type of stock that they believe they have an informational advantage or understanding of the business model. Additionally, investors tend to use leverage to maximize their investment exposure.

When things go “off-course” from expectations, investors are forced to exit their positions, cut their losses, or even face margin calls. This can lead to psychological barriers that force investors to “opt-out” of the game before their investments have a chance to turn a profit. These are lessons learned not only by individuals but also by investment funds and organizations.

To overcome this mentality, Mr. Trieu suggests that we must pay attention to the risks involved. Investors need to establish some ground rules when looking at the bigger picture of an investment opportunity.

“A well-run company that continues to make money has no reason to see its enterprise value decline indefinitely; there will be a point where it bounces back. The key is for investors to stay in the game until the company’s value truly appreciates, thereby overcoming the desire for quick wealth,” expressed the CEO of Eastspring Vietnam.

Additionally, with his experience as an individual investor and fund manager, Mr. Trieu believes that the “get-rich-quick” mentality can be controlled by purchasing fund certificates. This is considered a method of “standing on the shoulders of giants,” where professional fund managers will manage assets using expert methods. As a result, the rate of return will be more prolonged and sustainable than constantly “plunging” into the market daily.

Furthermore, the desire for quick wealth can be mitigated when investors clearly define their future goals, expected returns, and specific timelines. Subsequently, we can choose partners to accompany us, depending on the situation and market conditions, to allocate our investments appropriately. For investors who want to invest in stocks but lack the time and energy to research, fund certificates are an excellent tool. On the other hand, when investing in bonds, it is crucial to assess the ability of the bond issuer to repay their debt and their credit limit.

According to Mr. Trieu, investing is only effective in the long term. As the CEO of Eastspring Vietnam, he believes that to overcome the get-rich-quick mentality, investors need to find good partners, be patient with their decisions, and enjoy the journey with their chosen partners.

Patience and long-term investing are not just theories but are proven by the success stories of great investors. A notable example is Warren Buffett, often regarded as the most successful investor of all time, with an average annual return of 20%/year over several decades. This has propelled him to become one of the wealthiest individuals globally, with a net worth of hundreds of billions of dollars. This stands as a testament to the power of time and compound interest.

The key lies not in achieving high short-term profits but in having the patience to allow investments to grow sustainably. From Warren Buffett’s story, investors can learn that success in investing is not an overnight phenomenon. Instead of chasing the “get-rich-quick” dream, we need to be patient, trust in long-term strategies, and rely on trustworthy partners.