Power Of Compounding | Basant Maheshwari Investing Strategy For Ling Term #investing #stocks #wealth

Summary

This script emphasizes the importance of long-term investment strategies and patience in growing wealth. It explains that by investing early, such as at the age of 26, and holding on to assets like property or shares for decades, significant returns can be achieved. The example of turning ₹1 lakh into ₹100 crore over 40 years illustrates the power of consistent growth. It also touches on the idea that taking profits too early can hinder overall returns, with a focus on maintaining a steady, long-term portfolio approach.

Takeaways

• 😀 The power of consistent investment over time: Invest early, and your money can grow exponentially over decades.
• 😀 If you invest ₹1 lakh at 26, it could turn into ₹10 lakh in 10 years, ₹1 crore in 20 years, ₹10 crore in 30 years, and ₹100 crore in 40 years.
• 😀 The key to financial growth is patience. Waiting for long-term returns can be more rewarding than short-term profits.
• 😀 Real estate can be a good investment, but holding onto properties long-term, even as their value increases, is critical.
• 😀 Taking profits too early can be detrimental to your long-term growth, especially when it comes to stocks and other investments.
• 😀 Consistency in investment, especially in your 20s, can result in tremendous long-term returns and financial success.
• 😀 People often worship investors like Warren Buffett for achieving great returns at a young age, but this level of success takes time and strategy.
• 😀 A single share doubling in value is exciting, but what matters is the overall performance of your entire portfolio.
• 😀 Doubling your portfolio by age 26 is a remarkable achievement and a sign of strong financial strategy if maintained consistently.
• 😀 Long-term financial planning and strategic patience are more crucial than individual quick wins in the world of investments.

Q & A

What is the concept of profit growth described in the script?

The script discusses the idea of making consistent returns over a long period. By investing early, the value of money increases exponentially, where an investment grows ten times in ten years and continues to grow over the decades, with returns compounding over time.

How does the speaker illustrate the importance of waiting to see long-term returns?

The speaker emphasizes the power of long-term investments by using the example of how an initial investment of ₹1 lakh can grow to ₹10 lakh in 10 years, ₹1 crore in 20 years, ₹10 crore in 30 years, and ₹100 crore in 40 years, illustrating the exponential growth that occurs with patience.

Why does the speaker suggest not to sell investments too early?

The speaker suggests that selling investments too soon can limit potential returns. They emphasize the importance of holding onto investments, particularly in assets like real estate, where the price continues to rise over time. Selling too early is considered a missed opportunity for greater growth.

What is the speaker's view on taking profits from investments?

The speaker views taking profits early as a mistake, suggesting that doing so can hinder long-term wealth growth. They argue that waiting for investments to mature and grow further leads to much larger returns, as seen with successful investors like Warren Buffett.

What is considered a 'super return' by the speaker?

A 'super return' is defined by the speaker as consistently doubling a portfolio by 26 years of age. Achieving such a return by maintaining a long-term strategy and smart investments is seen as an exceptional accomplishment.

How does the speaker view short-term investment excitement versus long-term stability?

The speaker downplays the excitement of short-term gains, especially when individual shares double in value. Instead, they emphasize the importance of focusing on the overall portfolio growth and maintaining a long-term perspective for steady, substantial returns.

How does the speaker compare their approach to investing with Warren Buffett's success?

The speaker references Warren Buffett's early investment success to highlight the value of making smart, long-term investments. Buffett's strategy of buying undervalued shares and holding them for long-term growth is used as an example of how one can achieve exceptional returns.

What is the importance of not selling a property according to the speaker?

The speaker stresses that if a property is bought and its value increases, it is important not to sell it prematurely. The idea is that holding onto valuable assets, whether real estate or shares, will lead to much higher returns in the future rather than taking immediate profits.

What is the significance of a 20-25% return on investment?

A 20-25% return is considered an excellent return on investment by the speaker, especially at a young age. This level of return is seen as significant enough to build wealth over time and is considered a good benchmark for successful investing.

What advice does the speaker offer for consistent wealth creation?

The speaker advises investing early, staying patient, and avoiding quick profits in favor of long-term growth. By making wise investments, reinvesting profits, and maintaining a long-term outlook, one can create consistent wealth over time.