RESEARCH BEYOND GADGETS
“The investor's chief problem, and even his
worst enemy, is likely to be himself
BENJAMIN GRAHAM |
GURU
OF ACE INVESTOR WARREN BUFFETT As investors, we mostly try to blame everyone
else -brokers, financial advisers, agents, financial planners, friends who had
given any investment advice, etc -for an investment gone wrong. Rarely we take
the blame for any bad decision. Often, we buy a long-term ULIP policy without
looking into the pros and cons of such buys, the suitability factors associated
with such a decision, etc. We also sign so many blank forms for important
investment decisions. On the other hand, we do a thorough research while buying
an LCD TV, look for deals on websites or at shops before finally paying for
one. As investors, we should put in serious efforts for choosing the right
financial product too. If we don't do that, chances are high that such
investments may turn bad. -Gajendra Kothari
ALLOW
INVESTMENTS TO GROW
“Compound
interest is the eighth wonder of the world. He who understands it, earns it ...
he who doesn't, pays it
ALBERT
EINSTEIN
|
CELEBRATED THEORETICAL PHYSICIST There are two key secrets to successful wealth
creation: Compound interest and time Best Investment
Planning in India. There is a story about a king being
challenged by his neighbouring king. The reluctance on the part of the first
king over loss of life and wealth in case of a war led the two to decide the
winner through a game of chess. After the first king won the game, his wise
adviser suggested the win ning king to ask for one grain of rice on the first
square of the chess board, and double the amount in every subsequent square
till the 64th square was reached. Without realizing the veracity of the reward
in its en tirety, the losing king thought it a small price to pay for his loss.
When
he started counting, he realized that the rice on the 64th square was equal to
18 million trill lion rice grains -good enough to cover the entire surface of
earth this is the power of compound in. Now if you allow time for your
investments to grow, the com pounding effect can work won ders. Investments by
Buffett over the last 50 years compounded just under 21% annually, resulting in
a multiplier of 7,448 times. This means an investment of Rs 10,000 fifty years
ago is worth Rs 7.45 crore now. -Tanwir Alam
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