Why Investing is Easy - Chapter#3
Continuing with series of understanding Why Investing is Easy , We thought to bring our own example to the table. This is true story of a Share that we bought when we were just newbies. We bought a stock at INR 240 and It went to INR 2700 . Thats a neat 11X gain. Meaning 1 lac invested is worth 11 lacs now and 10 lacs Invested is worth just a above one crore at 1.1 crore.. Fanstastic! One can see Investing is so "easy" , you just have to buy a stock and wait for it to go up. Oh Wait! We just realised we did not tell you how long we waited to make 10 times money we invested. We bought a stock at INR 240 and It went to INR 2700 in 8 years Now it makes more sense, we just need to buy a stock and wait for 8 years to make 10X. T hat works to a return of ~31% yearly compounded. So we said wow what if we can compound at this rate for another 2 years? We have anyways waited for 8 years.. 2 more years wont hurt! Magic.. In Just 2 more years, we will have 2 Crores! So we decide to