Buy Gujarat Fluorochemicals CMP 526 for 5% gain in 1 month .
Wednesday, October 12, 2011
Saturday, September 17, 2011
LATEST PORTFOLIO OF RAKESH JHUNJHUNWALA
Stake information (includes his wife - Rekha Jhunjhunwala) is from the latest shareholding pattern of each company. 1 Cr = 10,000,000
.
| 533292 | A2Z Maintenance | 19.1 | 282 | 1,477 | 15.7 | 165 | 350 | 199 |
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| 532056 | Adinath Exim Res | 4.6 | 0 | 9 | 51.3 | 12 | 26 | 18 |
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| 533296 | Agre Devel. | 1.3 | 1 | 50 | 144.4 | 39 | 99 | 45 |
.
| 500215 | Agro Tech Foods. | 7.7 | 77 | 1,003 | 32.3 | 277 | 484 | 412 |
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| 526397 | Alphageo (India) | 2.4 | 1 | 53 | eps -ve | 90 | 223 | 104 |
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| 532475 | Aptech | 10.6 | 67 | 637 | 119.8 | 81 | 180 | 131 |
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| 532797 | Autoline Inds. | 10.3 | 16 | 151 | 8.0 | 111 | 280 | 124 |
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| 526853 | Bilcare | 1.1 | 10 | 853 | 9.8 | 318 | 787 | 362 |
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| 500092 | CRISIL | 7.8 | 454 | 5,860 | 28.5 | 5,611 | 9,032 | 8,254 |
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| 532848 | Delta Corp | 3.7 | 79 | 2,132 | 13.3 | 47 | 142 | 105 |
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| 532285 | Geojit BNP | 7.9 | 35 | 445 | 10.0 | 18 | 40 | 20 |
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| 532312 | Geometric | 7.7 | 19 | 244 | 9.5 | 35 | 87 | 39 |
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| 500186 | Hind.Oil Explor. | 4.0 | 69 | 1,730 | 21.6 | 111 | 293 | 133 |
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| 500214 | ION Exchange | 6.5 | 13 | 196 | 16.1 | 121 | 241 | 145 |
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| 590003 | Karur Vysya Bank | 4.7 | 187 | 3,961 | 10.0 | 346 | 457 | 370 |
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| 500257 | Lupin | 1.7 | 364 | 21,014 | 26.4 | 362 | 520 | 471 |
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| 532629 | McNally Bharat | 1.5 | 6 | 415 | 8.7 | 113 | 306 | 133 |
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| 500294 | NCC | 5.7 | 96 | 1,687 | 10.8 | 52 | 118 | 66 |
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| 524372 | Orchid Chemicals | 3.5 | 50 | 1,426 | 9.2 | 165 | 344 | 202 |
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| 570002 | Pantaloon DVR | 1.3 | 0 | 0 | 156 | 405 | 197 | |
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| 522205 | Praj Inds. | 8.8 | 121 | 1,372 | 24.2 | 61 | 95 | 74 |
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| 532748 | Prime Focus | 4.6 | 40 | 878 | 44.5 | 41 | 753 | 63 |
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| 532647 | Provogue (India) | 1.7 | 6 | 362 | 9.0 | 27 | 83 | 32 |
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| 500355 | Rallis India | 6.5 | 217 | 3,345 | 26.1 | 144 | 1,597 | 172 |
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| 533143 | Reliance Broad. | 2.2 | 15 | 699 | eps -ve | 59 | 121 | 88 |
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| 532348 | Subex | 1.8 | 6 | 340 | 4.6 | 41 | 95 | 49 |
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| 500114 | Titan Inds. | 9.8 | 1,939 | 19,847 | 48.0 | 193 | 4,765 | 224 |
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| 507880 | V I P Inds. | 6.4 | 179 | 2,777 | 32.6 | 454 | 989 | 983 |
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| 523796 | Viceroy Hotels | 11.2 | 12 | 109 | eps -ve | 24 | 57 | 26 |
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| 533339 | Zen Technologies | 10.12 | 9 | 92 | eps -ve | 93 | 226 | 103 |
Stocks to buy for 2011
Well Indian markets are butchered by the selling pressure of the FII'S and RBI's rate hike.But as Warrenn Buffett points out in his annual letter that we should ignore macro hindwinds and instead look for good stocks.Well we have stocks getting cheaper and cheaper as their earnings grow .Bad times and good times never last for forever there will be an end to this bear and we will start moving up .Now the point is nobody knows when markets will turn around So we should buy in diversify manners.Some of the stocks which are good for long term are.
1. PAGE INDUSTRIES-Well they sell Jockey brand in India.This year entered an agreement with speedo also.The cotton prices have cooled off and Page increased prices of their undergarments in order to absorb the rise in prices of cotton.So for this full year the results will be good.
2. PI INDUSTRIES-PI Industries Ltd is in the business of – Agri inputs, Fine Chemicals (CRAMS - Contract Research and Manufacturing Services).Well we are now sure of one thing indian inflation is due to lack in supply of vegetables and agricultural material.So In order to increase the productivity government may soon announce farmer friendly schemes to increase agricultural production.
This will lead to very good results from PI industries.
3. TALWALKARS BETTER VALUE FITNESS -Well all the stocks related to consumption are enjoying a premium .Talwalkars are expanding quiet fast and sooner or later their profit margins and business will increase as income is increasing .People are more health conscious and Talwalkars is doing a great job.Just look at people's review .http://www.facebook.com/TalwalkarsIndia?sk=wall at Talwalkars wall page .The stock is all set to give good results .
4.HDFC BANK-The next stock on our radar is HDFC bank as the rate cycle is almost over.We expect HDFC to perform better.HDFC have utilised their assets very well.
5.CRAVATEX-Investors with high risk taking abilities can buy this stock they have the license of FILA for indian operations .The market cap is very small . people The PE and EPS both are expected to increase thus it can provide very good results One should allot maximum of 1 % of their portfolio to this stock
6.AKZO NOBEL-This is the cheapest stock in the paint industry .The dividend is quiet good .Just look at it's 10 year chart it's amazing.It has constantly delivered good results.They own dulux brand.The comapany is increasing production.As the crude oil prices cool off their profit margins will increase.
1. PAGE INDUSTRIES-Well they sell Jockey brand in India.This year entered an agreement with speedo also.The cotton prices have cooled off and Page increased prices of their undergarments in order to absorb the rise in prices of cotton.So for this full year the results will be good.
2. PI INDUSTRIES-PI Industries Ltd is in the business of – Agri inputs, Fine Chemicals (CRAMS - Contract Research and Manufacturing Services).Well we are now sure of one thing indian inflation is due to lack in supply of vegetables and agricultural material.So In order to increase the productivity government may soon announce farmer friendly schemes to increase agricultural production.
This will lead to very good results from PI industries.
3. TALWALKARS BETTER VALUE FITNESS -Well all the stocks related to consumption are enjoying a premium .Talwalkars are expanding quiet fast and sooner or later their profit margins and business will increase as income is increasing .People are more health conscious and Talwalkars is doing a great job.Just look at people's review .http://www.facebook.com/TalwalkarsIndia?sk=wall at Talwalkars wall page .The stock is all set to give good results .
4.HDFC BANK-The next stock on our radar is HDFC bank as the rate cycle is almost over.We expect HDFC to perform better.HDFC have utilised their assets very well.
5.CRAVATEX-Investors with high risk taking abilities can buy this stock they have the license of FILA for indian operations .The market cap is very small . people The PE and EPS both are expected to increase thus it can provide very good results One should allot maximum of 1 % of their portfolio to this stock
6.AKZO NOBEL-This is the cheapest stock in the paint industry .The dividend is quiet good .Just look at it's 10 year chart it's amazing.It has constantly delivered good results.They own dulux brand.The comapany is increasing production.As the crude oil prices cool off their profit margins will increase.
Why we loose money in stock market ?
To answer that question we just need to figure out what the good
investors do, that we don't.Those who make the biggest money in stocks
come out with superior long term results because they make fewer
mistakes than us and not because they have any miraculous ability to
keep finding the right stocks all the time.Mere mortals like me and you
are fooled into making way too many mistakes in the stock market and end
up disillusioned and with much less money left than what we started
with.So it all boils down to the fact that the person making fewer
mistakes while investing will end up richer.
So how do we remedy this? What are the common pitfalls that we keep repeating over and over again that good investors avoid? There are four broad categories of mistakes
1) Mistakes in Asset Allocation - We buy stocks when the markets are booming and start selling them when the markets start crashing.Its like buying a car when the car price is near its peak and selling it when the prices are most depressed.Any high school kid will tell you that its stupid to buy something at a very high price and then sell it at a very low price.You almost always will end up losing money.Yet we fall into this trap time and again.Consider the current market scenario and you will realize how true this is.Almost everybody is scared to buy stocks now when they are cheap and wants to invest in FDs and bonds.Compare this to September last year,when every tom,dick and harry wanted to own a demat account was ready to buy stocks at exhorbitant prices.
So lesson number one : Buy more stocks when the markets are most depressed and buy more debt(FDs,bonds etc) when the market is near its peak.More on how exactly to balance and re-balance your portfolio in a future post.
2)Mistakes in Market timing - We try to "time" the market.We try to predict whether the market will go up or down today or in a week or in a month.There is NOBODY who can do this consistently over a long period,because if there was then he/she could amass unimaginable amount of wealth.Yet there is a whole industry of stock/trading analysts who try to predict short term stock movements. And if you thought they got rich because they themselves invest in their own predictions then you are wrong.They got rich because of the money people like us pay them as "prediction fee".
Lesson number two : Forget about timing the market.Even the best investors have given up.Just invest in a SIP and stay away from frequent trading.
3)Mistakes in stock selection - Most investors simply buy overpriced stocks that are hyped up by sellers of stocks i.e. promoters and intermediaries such as brokers and merchant bankers. They end up chasing fashions and fads and eventually suffer heavy losses.A great deal of investors focus on factors that are completely irrelevant in evaluating the worth of the stock and fail to look at simple but vital things before committing money to stocks - things that they would have checked out if they were buying the entire business.
Moreover, stockmarket investors display impatience that they do not display in their real-estate transactions. If an investor buys a sound stock and nothing happens for a couple of years he is likely to get impatient and switch to something that is likely to "move". He will show no such impatience in a property transaction where the average holding period is well in excess of five years. That's why the very same people who make money in the property market lose in the stock market.
4) Temperamental mistakes - The biggest mistakes most investors make are temperamental in nature. For example, after having made a mistake, most investors compound it by refusing to sell at a loss thus blocking their capital in a lousy stock when other fantastic investments can be bought at bargain prices. Another temperamental mistake most investors make is their promptness in taking profits. This type of mistake alone keeps millions of investors from getting rich. If you doubt me, just ask any investor who bought Bajaj Auto, Colgate or Castrol shares in 1980 and sold at a profit in 1985.
Another common mistake is investors' inability to ignore market fluctuations.The market may ignore business success for a while but will eventually confirm it.
So steer clear of these mistakes and you will do much better with stocks.
So how do we remedy this? What are the common pitfalls that we keep repeating over and over again that good investors avoid? There are four broad categories of mistakes
1) Mistakes in Asset Allocation - We buy stocks when the markets are booming and start selling them when the markets start crashing.Its like buying a car when the car price is near its peak and selling it when the prices are most depressed.Any high school kid will tell you that its stupid to buy something at a very high price and then sell it at a very low price.You almost always will end up losing money.Yet we fall into this trap time and again.Consider the current market scenario and you will realize how true this is.Almost everybody is scared to buy stocks now when they are cheap and wants to invest in FDs and bonds.Compare this to September last year,when every tom,dick and harry wanted to own a demat account was ready to buy stocks at exhorbitant prices.
So lesson number one : Buy more stocks when the markets are most depressed and buy more debt(FDs,bonds etc) when the market is near its peak.More on how exactly to balance and re-balance your portfolio in a future post.
2)Mistakes in Market timing - We try to "time" the market.We try to predict whether the market will go up or down today or in a week or in a month.There is NOBODY who can do this consistently over a long period,because if there was then he/she could amass unimaginable amount of wealth.Yet there is a whole industry of stock/trading analysts who try to predict short term stock movements. And if you thought they got rich because they themselves invest in their own predictions then you are wrong.They got rich because of the money people like us pay them as "prediction fee".
Lesson number two : Forget about timing the market.Even the best investors have given up.Just invest in a SIP and stay away from frequent trading.
3)Mistakes in stock selection - Most investors simply buy overpriced stocks that are hyped up by sellers of stocks i.e. promoters and intermediaries such as brokers and merchant bankers. They end up chasing fashions and fads and eventually suffer heavy losses.A great deal of investors focus on factors that are completely irrelevant in evaluating the worth of the stock and fail to look at simple but vital things before committing money to stocks - things that they would have checked out if they were buying the entire business.
Moreover, stockmarket investors display impatience that they do not display in their real-estate transactions. If an investor buys a sound stock and nothing happens for a couple of years he is likely to get impatient and switch to something that is likely to "move". He will show no such impatience in a property transaction where the average holding period is well in excess of five years. That's why the very same people who make money in the property market lose in the stock market.
4) Temperamental mistakes - The biggest mistakes most investors make are temperamental in nature. For example, after having made a mistake, most investors compound it by refusing to sell at a loss thus blocking their capital in a lousy stock when other fantastic investments can be bought at bargain prices. Another temperamental mistake most investors make is their promptness in taking profits. This type of mistake alone keeps millions of investors from getting rich. If you doubt me, just ask any investor who bought Bajaj Auto, Colgate or Castrol shares in 1980 and sold at a profit in 1985.
Another common mistake is investors' inability to ignore market fluctuations.The market may ignore business success for a while but will eventually confirm it.
So steer clear of these mistakes and you will do much better with stocks.
How much money I should invest in stock market
A lot of people I know are very confused about how to go about investing
their money.Usually they end up investing in a very random manner.This
can leave you feeling very disillusioned,especially if the investment
has lost money in the short term.
A lot of people might be undergoing this feeling of disillusionment right now considering how the market has tanked and how people have lost half their wealth in a matter of months.
I wont go into the details of investment planning but will give you general rules of thumb.
1) Have objective short,medium and long term financial goals."I will buy a car in an year." , "I want to go around the world in about 6 years ", "I want to own a restuarant when i am 50" and so on.You will have a fair idea about much money you need to have when the time comes and what exactly are you going to do with it.Once you know how much money you need you can plan much better and achieve your goals far more easily.
2) This is how you should allocate money :
a) Short term goals - Here "Cash is king". Any money you might need within a year or 18 months better be there in your savings account.There is no way you can risk losing your money by investing it in equities and although short term FDs,bonds etc are available the returns over an year will be very nominal and you wont have liquidity.
b)Medium term goals - Invest in FDs,NSCs,government bonds et al. Basically you cant trust stocks over the medium term too and you would do well if you stick to sure shot returns.So if that world tour costs 5 lakhs,assuming a return of about 7% for your investments you would need to invest about 3 lakhs for a 6 year period.
c)Long term goals - Now the fun part begins. Nothing, just nothing beats equity over the long term.If you really want to make your investments work for you,stay invested in equities for a long long time and you'll end up a rich man.To give you an example,if you start investing Rs. 2000 in a monthly SIP exclusively for your retirement(say after 30 years) and you stick to this simple SIP all the way.Assume a return of about 15% per annum,which by the way is conservative considering India's growth story,when you retire you'll have,any guesses? :
Rs. 1,40,19,641
That's right,about 1.4 crores for an investment of 12 x 2000 x 30 = 7.2 lakhs.
That restaurant does'nt look that elusive now,does it.
That is the power of compounding and the power of equities.No other asset class can give you returns averaging around 15% for an extended period of time.
Moral of the story - Don't trust stocks with your money over the short/medium term.Invest in stocks only that money which you won't need for a long long time.And you won't be disappointed with the results.
A lot of people might be undergoing this feeling of disillusionment right now considering how the market has tanked and how people have lost half their wealth in a matter of months.
I wont go into the details of investment planning but will give you general rules of thumb.
1) Have objective short,medium and long term financial goals."I will buy a car in an year." , "I want to go around the world in about 6 years ", "I want to own a restuarant when i am 50" and so on.You will have a fair idea about much money you need to have when the time comes and what exactly are you going to do with it.Once you know how much money you need you can plan much better and achieve your goals far more easily.
2) This is how you should allocate money :
a) Short term goals - Here "Cash is king". Any money you might need within a year or 18 months better be there in your savings account.There is no way you can risk losing your money by investing it in equities and although short term FDs,bonds etc are available the returns over an year will be very nominal and you wont have liquidity.
b)Medium term goals - Invest in FDs,NSCs,government bonds et al. Basically you cant trust stocks over the medium term too and you would do well if you stick to sure shot returns.So if that world tour costs 5 lakhs,assuming a return of about 7% for your investments you would need to invest about 3 lakhs for a 6 year period.
c)Long term goals - Now the fun part begins. Nothing, just nothing beats equity over the long term.If you really want to make your investments work for you,stay invested in equities for a long long time and you'll end up a rich man.To give you an example,if you start investing Rs. 2000 in a monthly SIP exclusively for your retirement(say after 30 years) and you stick to this simple SIP all the way.Assume a return of about 15% per annum,which by the way is conservative considering India's growth story,when you retire you'll have,any guesses? :
Rs. 1,40,19,641
That's right,about 1.4 crores for an investment of 12 x 2000 x 30 = 7.2 lakhs.
That restaurant does'nt look that elusive now,does it.
That is the power of compounding and the power of equities.No other asset class can give you returns averaging around 15% for an extended period of time.
Moral of the story - Don't trust stocks with your money over the short/medium term.Invest in stocks only that money which you won't need for a long long time.And you won't be disappointed with the results.
10 must read books for Stock investing
Ten Must Read Investing Books
There are many investing books out there that can help investors expand their knowledge. This list highlights 20 great wall street books every trader and investor should read.
1. How to Make Money in Stocks by William O’Neil
This is a classic by William O’Neil, describing the ins and outs of his CANSLIM system
for finding future big winners in the stock market and how to time
entries and exits. It combines fundamental and technical analysis and is
a good guide for new investors.
2. One Up On Wall St by Peter Lynch
This is an investment classic
that will give the individual investor hope. Peter Lynch explains how
Wall Street may not be able to find the best investing opportunities
from the start and shows step-by-step how the individual investor can
find the next ten-bagger.
3. The Warren Buffett Way by Robert Hagstrom
This book sheds insight into the
ways and means of the Oracle of Omaha. Warren Buffett’s thoughts are
insightful and his methods may yield fruitful rewards for investors with
enough patience to learn them, understand them and apply them
correctly.
This book is a true page turner.
It is a breath-taking recount of how a young boy managed to amass one
of the largest fortunes by speculating despite going broke a few times
in his career. He has timeless advice for investors(“I’ve always made my
money from sitting, not thinking”) which will help your trading for
years to come.
5. Market Wizards by Jack Schwager
This book is a collection of
interviews of a group of successful traders in the 1970s/80s. Their
experiences are interesting to hear and traders may draw useful lessons
from them. However, some of them were successful only because they were
in the right place at the right time. The 1970s were a great commodity
bull market and some of them profited from it. Nevertheless this is a
classic to read and enjoy.
6. Fooled by Randomness by Nassim Taleb
This book, which would go along
well with “The Black Swan”, explains the author’s thoughts about how
randomness plays a larger role in our lives than we expect. For traders,
this would imply that risks are usually large than we expect. Also, it
would mean that some things in the financial world aren’t exactly what
they seem.
7. Trader Vic—Methods of a Wall Street Master by Victor Sperandeo
The view the author has is slightly biased in
favor of the Austrian School of Economics. Some of his methods are
novel—you wouldn’t see them in most books on trading (for instance, his
measuring the average length and magnitude of a bull/bear market’s
primary and secondary trends, there by gauging the odds for a change in
the trend in the market). His views on investor psychology are also
interesting to read.
8. Alchemy of Finance by George Soros
This book, along with Soros’s latest book, The New Financial Paradigm
explain the author’s theory of reflexivity and how it relates to the
market. Though it may not provide a direct system for trading, it is
extremely thoughtful and deepens one’s understanding of how the
financial markets work. The book may be a bit dense but it is rewarding
for those who are willing to finish it.
9. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay
Tulipomania, the South Sea
bubble and the Mississipi Land scheme are covered in this book, showing
how herd mentality worked to create bubbles in past eras. It may serve
as an interesting read as well as a guide for dealing with future
bubbles.
10. Common Stocks and Uncommon Profits by Philip Fisher
This unseeming book is written by Philip Fisher, who Buffett credits with most
of his success. In the age of quantitative finance, this book is a
must-read for those who want to understand how to inspect a company
qualitatively.
RAKESH JHUNJHUNWALA BIOGRAPHY
Personal Profile: RJ is a Chartered Accountant.He married in 1987.He has a daughter and two sons.He lives in Malabar Hill.
He started investing in 1989.He persuaded a lady who was getting
10% interest in bank deposits.He said that he will give her 18%
interest.She asked for security.He replied he will be able to give
within 15 days.So finally,he managed to get Rs.2.5 lakhs from the lady.
In 1989, he bought 500 shares of Tata Power at Rs.150 bcoz yeild
was higher than interest and benefit of Electricity Act. He made money
in the stock.Then one of his friend introduced him to Sesa Goa. He
bought 2.5 lakh shares at Rs.27 and then another 2.5 lakh shares at
36-37, which he sold it off at Rs.65.
On 1992 budget day,he went long,at the same time he was short on
certain scrips.He doubled his positions after the budget.Everyone was
bearish except RJ. He sold ACC at 3500 which went all the way till
10,000..thats where he realised that psychology plays an important role
in investing.
He believes in Diversification within concentration.He increase his holdings after reviewing the situation.
He is influenced most by Dr.Marc Faber,Buffet. He says the investing qualities are similar to that of Faber.
When asked about the value of his portfolio holdings,he said," If you can count the money you have,you dont have enough"
, . His privately owned stock trading firm Rare Enterprises, derives its name from the first two initials of his name and wife Rekha's name.
Under the guidance of Mr Radhakrishna Damani, he made a lot of money shorting stocks at the time of Harshad Mehta scam post 1992.
"My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success,” said Rakesh Jhunjhunwala.
Jhunjhunwala's portfolio of stocks is tracked religiously. analysis. He acknowledges that it was 'trading' income which helped him built his initial capital base and continues to remain an active trader .
"I still eat, sleep and live markets," says Rakesh .Even in his initial days he would give his 16 hours of the day in reading and studying about stocks. He currently owns RARE Enterprises.He is currently buying Delta Corp and owns 3.6% of the company.Rakesh Jhunjhunwala lives in Malabar hill.
I am posting all videos available about him .
A SUMMARY ON HIS LIFE JOURNEY
RAKESH JI WITH PRIYANKA CHOPRA
THE MARKET MAKERS RAKESH JHUNJHUNWALA
RAKESH JHUNJHUNWALA WITH RAMESH DAMANI
Power of compounding
Albert Einstein had once remarked,the most powerful force in this world is power of compounding.Saving is the key to wealth.The rich are not rich because they earn a lot of money; the rich are rich because they save a lot of money.
You may be skeptical — I was once skeptical, too. But over the past three years I’ve read a lot on the subject of wealth-building. Books like Stanley and Danko’s The millionaire next door make it abundantly clear that it’s not a high income that leads to wealth — though obviously a high income does not hurt — but the ability to save. Those who become wealthy do so by spending less than they earn.
If saving is the key to wealth, then time is the hand that turns the key to unlock the door. There is no reliable method to quick riches. There are, however, proven methods to get rich slowly. If you are patient, and if you are disciplined, you can produce a golden nest egg that will hatch later in life.
Now the amount of capital you start with is not nearly as important as getting started early,Procrastination is the natural assassin of opportunity.
Every year you put off investing makes your ultimate retirement goals more difficult to achieve.”The secret to getting rich slowly, he says, is the miracle of compound interest. Even modest returns can generate real wealth given enough time and dedication.
For example, if 20-year-old Ravi compounds his 10000 Rs with 20 % / annum, and if he never touches the money, that 10000 will grow to Rs 36,572,619 by the time he retires at age 65. But if she waits until she’s my age (39) to make her single investment, that 10000 would only grow to 1,144,754. Time is the primary ingredient to the magic that is compounding.
To make compounding work for you:
You may be skeptical — I was once skeptical, too. But over the past three years I’ve read a lot on the subject of wealth-building. Books like Stanley and Danko’s The millionaire next door make it abundantly clear that it’s not a high income that leads to wealth — though obviously a high income does not hurt — but the ability to save. Those who become wealthy do so by spending less than they earn.
If saving is the key to wealth, then time is the hand that turns the key to unlock the door. There is no reliable method to quick riches. There are, however, proven methods to get rich slowly. If you are patient, and if you are disciplined, you can produce a golden nest egg that will hatch later in life.
Now the amount of capital you start with is not nearly as important as getting started early,Procrastination is the natural assassin of opportunity.
Every year you put off investing makes your ultimate retirement goals more difficult to achieve.”The secret to getting rich slowly, he says, is the miracle of compound interest. Even modest returns can generate real wealth given enough time and dedication.
For example, if 20-year-old Ravi compounds his 10000 Rs with 20 % / annum, and if he never touches the money, that 10000 will grow to Rs 36,572,619 by the time he retires at age 65. But if she waits until she’s my age (39) to make her single investment, that 10000 would only grow to 1,144,754. Time is the primary ingredient to the magic that is compounding.
To make compounding work for you:
- Start early. The younger you start, the more time compounding has to work in your favor, and the wealthier you can become. The next best thing to starting early is starting now.
- Make regular investments. Don’t be haphazard. Remain disciplined, and make saving for retirement a priority. Do whatever it takes to maximize your contributions.
- Be patient. Do not touch the money. Compounding only works if you allow your investment to grow. The results will seem slow at first, but persevere. Most of the magic of compounding returns comes at the very end.
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