Tuesday, 6 December 2016

9500/- to 5 crores - CAN WE REPLICATE THIS?


We all know the success story of shareholders who participated in IPO of Infosys in 1993.
We all admire the fact that initial investment of only Rs 9500 /- in year 1993 is worth 5 crores today , i.e. in 2016.
23 years and 9500 worth of investment is 5 crores.
If we do some calculation, it gives me a compounded (compounded annually) annual return of approximately 45 %.
This is just close to 3.75% return per month.

If we compound it monthly, it will be much lesser but will also be much more impractical. So let us stick to annual compounding only.
Now , interesting point to is , can we replicate this success. Unfortunately, we cannot go back  to 1993 and make this investment. But can we create a process , so that this kind of investment success can be replicated for next 23 or 20 or 15 years. In fact , even if we are able to make 50 % of this, still it would be an excellent return.
Let me show you some numbers. Suppose we start with investment of 1 lakh and are able to produce 3.75% per month on it. See what will be its value (we are compounding it annually).
    • 15 years from now it will be 2.63 crores
    • 20 years from now it will be 16.87 crores
    • 23 years from now it will be 51.45 crores

What if the return is not 3.75% per month ?
Let us say it is 2.5 % per month assuming some months we will get 4% and some months it will be lesser. So 1 lakh with 2.5% monthly return will be what ?
    • 15 years from now it will be 51.14 lakhs
    • 20 years from now it will be 1.90 crores
    • 23 years from now it will be 4.17 crores.
Isn’t this magical ?
But, bigger question is , is this possible ?
3 to 5 % monthly return is definitely possible through non-directional hedged strategies in OPTIONS.
In addition to this monthly return, there is a huge scope for capital appreciation of the investment. So in case of any bad months(which will also be there), one can still be on target to achieve the above numbers.
What is the difference between success of Infosys investors and you ?
Well , they got right investment at right time and were fortunate enough to reap the benefits of hard work of founding team. In this case, you need to work yourself with your money, but results achieved can be similar or even better. To achieve this,
You need two things :-
    1. Patience of being a long term investor.
    1. Knowledge to make this conservative monthly return as well as capture long term capital appreciation from same investment.
We can off course help in point number 2 only.
Join our one day online interactive workshop and acquire this knowledge. Our three month support to clear your doubts will ensure you are on the right track.
What is the guarantee ?
Nil, if you have similar or better option, please go for it and share with us also.
As rightly said,