A rocket may thrill, but do not forget the power of compounding

SPACEX, its initial public offering being the biggest to hit the market this year, piqued investors’ interest and was immediately catapulted to the elite club of companies with more than US$2 trillion in market capitalisation, of which only six exist globally.

Many Singapore investors have lamented that they missed out on this mega IPO, which was not available to retail investors based in the city-state.

However, history consistently shows that long-term gains are driven not by chasing the next big winner, but instead by disciplined investing and allowing compounding to do the heavy lifting.