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A small thread on the power of compounding.
1. If you invested 1 ₹ in the 1st box and allowed it to compound let’s say in a simple bank account, by the time it’s in the 8th box you would have made 128 x your original 1₹ now apply this to sensex or Berkshire Hathaway.
1. If you invested 1 ₹ in the 1st box and allowed it to compound let’s say in a simple bank account, by the time it’s in the 8th box you would have made 128 x your original 1₹ now apply this to sensex or Berkshire Hathaway.
2. The time it takes to reach the boxes depends on the time taken to compound. If you put that 1₹ in bank account it takes 8-10 years to move to second box, but the same will take just 3 years if invested in Berkshire and around 6 years if if you invested in sensex.
3. Compounding applies to everything in life, I had 5 good friends in school and as we grew up those 5 knew 5 more and they knew 5 more and over a period of time there’s this big group of people I came to know just by the first 5 persons. So compounding happens in everyday life.
