Power Of Compounding

Power Of Compounding

Power Of Compounding

A motivating story about how early made long term investment with discipline can change you fortune.

Once Upon a time there lived a King who was generous and kind to the poor and needy. He always cared to respect and reward scholars for their knowledge and wisdom. Hearing about the generosity of the King a poor Sage came to meet him at his palace. The sage presented a poem which he has written in front of King. Impressed by the quality of the literary work, the king asked the sage to name the reward he wanted. “Are you sure that I can ask anything?” the sage asked. “Sure, you may ask anything you like.” King replied. Then the sage pointed to the royal chess board and asked “Your majesty, “My wishes are simple. I only wish for one grain of rice for the first square of the chessboard, two grains for the second square, four grains for the third square, eight for the fourth square and so on for all 64 squares.”

King happily agreed to the inventor’s request. However after a week, the king’s treasurer informed him that the reward would add up to a huge number—far greater than all the rice that could possibly be produced in many centuries!

Do you know how much rice it would be when one reaches 64th square of the chessboard?

As said earlier, in the first square of the chessboard there is only one grain. But when you come to the 64th square, it is 18 million trillion grains of rice. This is more than enough to cover the entire surface of the earth.
All of us behave like the king in some ways or the other. We find it hard to understand how the ‘power of doubling or compounding’ makes numbers grow.

Moral of the story
Start investing early
Don’t touch the amount for a long time
Don’t keep jumping from one investment to another

Again and again we are explaining the benefits and miracles of long term investment. Stock market is the only place where returns are extreme either way, if invested under the guidance of professionals with discipline it can change your life also like of the stories sage. Invest either in multibagger stocks or value pick stocks both have the capacity to change your fortune depending on your risk return profile. Don’t wait invest now with SEBI registered Research analyst.