Lets get back to the basics...high school maths...simple interest vs compound interest. 10 lacs invested now and compounded at 30% per annum will get multiplied to 250 crores in 30 years. However if one withdraws the 30% every year i.e. withdraws 3 lacs every year the principal at the end of 30 years will remain 10 lacs.
What do we take away from this?
1) Compounding is an amazing thing - if you want to be worth 250 crores in 30 years start now with 10 lacs
2) How does one get 30% per annum...technical analysis and trend following....30% a year is very easy using this.
Wednesday, February 18, 2009
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