The Difference Between Making Fast Money and Slow Money

This article will be relevant to most Chinese investors, whether due to cultural or societal reasons. The entire piece revolves around one phrase: “Get rich slowly, analyze carefully.”

The current trend is a fast-paced lifestyle—not just “fast-paced,” but “fast money.” For example, we are all familiar with the boom of Douyin (TikTok in China), the rise of independent media, and the popularity of game streamers. At one time, many game streamers and so-called Douyin influencers indeed became wealthy and found new opportunities. This kind of “fast-track to wealth” has helped many people change their own lives and the lives of their families.

However, over time, the influencers we once knew have disappeared. Why? This is the consequence of fast money. Many people love shortcuts because they can achieve big results with less effort. But the problem is whether such an approach is sustainable.

Take the once hugely popular U.S. retail chain Forever 21 as an example. This brand, beloved by young women around the world, filed for bankruptcy protection this year. When I visited their store, almost all the products were on sale, yet customer traffic was still low. What builds a successful giant company, and why does it ultimately fail? Both answers are closely related to investing and the philosophy of “get rich slowly, analyze carefully.”

Nowadays, everyone wants overnight success—becoming famous on Douyin, becoming a star through independent media—but they overlook the hard work and struggles behind the scenes. Too many people look at Facebook’s founder succeeding in his twenties, or at a beautiful woman becoming an overnight Douyin sensation, and feel jealous: “Why can’t I be like them? Maybe tomorrow I’ll be the focus of attention. Maybe tomorrow I’ll be singing at a big concert. Maybe tomorrow I’ll be spotted by a talent agency on the street.”

But people forget the huge underlying factor behind wealth—effort.

Everything requires effort. Being lazy takes effort, being a journalist takes effort, being a celebrity takes effort, being an investor takes effort. Each path comes with its own price.

For example, many people think: “If I become a celebrity, I’ll be rich and everyone will pay attention to me.” That’s true—but the cost is that you will have very little privacy. You can’t want the perks of being a public figure without paying the price.

As for being lazy—if you don’t want to exercise or make an effort, you will pay with your health. If you don’t want health problems, you have to spend time working out and resist junk food. Everything has a cost, whether in money, time, energy, or opportunities.

True wealth comes from gradual accumulation and steady success. Warren Buffett is a great example. From a young age, Buffett loved making money and, importantly, saving it. His investment philosophy is simple: Find a great company and hold it for the long term.

So why can’t most people succeed with such a simple idea? Because it takes time. It requires investors to carefully analyze companies (which is a deep skill set in itself), to have the patience to understand the business, and to buy at a very low price. And all of this takes years—not one year, not two, but a lifetime.

Three years ago, I interviewed Howard Marks, the founder of Oaktree Capital. He asked me: “Do you truly love investing?”

I answered: “Yes, I love it very much.”

But he immediately challenged my answer—because of my youth and limited experience, I hadn’t yet earned the right to say I “truly” love investing. To truly love it, you must endure failures without giving up. Buffett has invested for decades without ever quitting.

Many people look forward to retirement or leisure, which proves they don’t truly love what they do. Time is a great friend. My friend Robert, a very smart fund manager, once held Tesla stock at its lowest point—and instead of selling, he bought more. He had spent nearly 1,000 hours analyzing Tesla. As Robert said, “Time can prove an excellent investor.”

Today, many once-famous influencers and wealthy streamers have faded from the spotlight. Their brief moment of wealth was not sustainable. That’s why “slow success, careful analysis” is the best strategy for investing.