Re: What are the problems relating to compounding your money for a long period of tim
Well everyone are not Jhunjhunwalas and Damanis. Could you please share you wisdom with some examples from your experience so Jack and all others can benefit.
Well for creating wealth over longer term one doesnt need to be the market expert. But the problem with most people is everyone wants to make money in the short term and they are not ready to ride the troughs of stock markets just as they ride the peaks. As the above person commented patience is the key.
From my personal experience... my father bought a decent quantity of winning stocks like reliance, HUL alongwith many pathetic stocks like rcom, suzlon, nhpc many years back which he still holds till date in a physical form. Despite the lack of any fundamental and technical knowledge he has generated returns well above the 20% mark. I learnt investing the same way (albeit with little more fundamental know-how) and i m well on my way of compounding money. I made good returns in yes bank, bajaj finance, vguard, shilpa medicare, caplin point, sagar cements and also lost some in lupin, reliance and zydus wellness.
Simplest path is to find 8-10 good stocks in different sectors, add them on dips and keep faith. Just hold on to them for few years, you will easily compound money. If you can track them, you can do even better by removing the companies with poor performance. Thread owner has given the horizon of 20 yrs which is good enough for creating real wealth.
