General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
This weekend I was going through a reverse CAGR formula and what it implies if one just buys and holds for 10years with regards to compounding.
https://cagrcalculator.net/reverse-cagr-result/
Principle amount 10lakh
No tinker buy and hold 10years
Let's take 3 examples
HDFC bank historical 10 year CAGR of 25% (source valueresearchonline.com)
Bajaj finance historical 10 year CAGR of 80%
Bank FD let's take current interest rate of 8%
Taxation will be different for FD and equity long term holdings
What one may get
HDFC bank 93lakh
Bajaj finance 35.7 crores
FD 21.5lakh
If we do invest in Bajaj finance and hold, it may be unsustainable to grow at 80% for next 10 years but...
One is most likely to get a CAGR of somewhere between 25 to 80, so between 1Cr to 35Cr.
Worst case scenario it behaves as badly as an FD, still one would save on taxes
Another scenario of doomsday etc least probable.
I am not implying that one should invest all his money in equity, that's stupid ofcourse, but just invest 10lakh when he has time on his side and forget to mess with it.
Sometimes I feel most of us try too hard to create wealth trading even tick charts, and still failing miserably both financially and emotionally....
Thing is trading may not be for everyone, but the above can be achieved by most.
Vivek
https://cagrcalculator.net/reverse-cagr-result/
Principle amount 10lakh
No tinker buy and hold 10years
Let's take 3 examples
HDFC bank historical 10 year CAGR of 25% (source valueresearchonline.com)
Bajaj finance historical 10 year CAGR of 80%
Bank FD let's take current interest rate of 8%
Taxation will be different for FD and equity long term holdings
What one may get
HDFC bank 93lakh
Bajaj finance 35.7 crores
FD 21.5lakh
If we do invest in Bajaj finance and hold, it may be unsustainable to grow at 80% for next 10 years but...
One is most likely to get a CAGR of somewhere between 25 to 80, so between 1Cr to 35Cr.
Worst case scenario it behaves as badly as an FD, still one would save on taxes
Another scenario of doomsday etc least probable.
I am not implying that one should invest all his money in equity, that's stupid ofcourse, but just invest 10lakh when he has time on his side and forget to mess with it.
Sometimes I feel most of us try too hard to create wealth trading even tick charts, and still failing miserably both financially and emotionally....
Thing is trading may not be for everyone, but the above can be achieved by most.
Vivek
Last edited:
I dont have answers for your questions. Im sorry.
But I have a question for you. Please tell me how you manage to post if you are "Banned".
Or is it some silly trick you do??
View attachment 31457
But I have a question for you. Please tell me how you manage to post if you are "Banned".
Or is it some silly trick you do??
View attachment 31457
This weekend I was going through a reverse CAGR formula and what it implies if one just buys and holds for 10years with regards to compounding.
https://cagrcalculator.net/reverse-cagr-result/
Principle amount 10lakh
No tinker buy and hold 10years
Let's take 3 examples
HDFC bank historical 10 year CAGR of 25% (source valueresearchonline.com)
Bajaj finance historical 10 year CAGR of 80%
Bank FD let's take current interest rate of 8%
Taxation will be different for FD and equity long term holdings
What one may get
HDFC bank 93lakh
Bajaj finance 35.7 crores
FD 21.5lakh
If we do invest in Bajaj finance and hold, it may be unsustainable to grow at 80% for next 10 years but...
One is most likely to get a CAGR of somewhere between 25 to 80, so between 1Cr to 35Cr.
Worst case scenario it behaves as badly as an FD, still one would save on taxes
Another scenario of doomsday etc least probable.
I am not implying that one should invest all his money in equity, that's stupid ofcourse, but just invest 10lakh when he has time on his side and forget to mess with it.
Sometimes I feel most of us try too hard to create wealth trading even tick charts, and still failing miserably both financially and emotionally....
Thing is trading may not be for everyone, but the above can be achieved by most.
Vivek
https://cagrcalculator.net/reverse-cagr-result/
Principle amount 10lakh
No tinker buy and hold 10years
Let's take 3 examples
HDFC bank historical 10 year CAGR of 25% (source valueresearchonline.com)
Bajaj finance historical 10 year CAGR of 80%
Bank FD let's take current interest rate of 8%
Taxation will be different for FD and equity long term holdings
What one may get
HDFC bank 93lakh
Bajaj finance 35.7 crores
FD 21.5lakh
If we do invest in Bajaj finance and hold, it may be unsustainable to grow at 80% for next 10 years but...
One is most likely to get a CAGR of somewhere between 25 to 80, so between 1Cr to 35Cr.
Worst case scenario it behaves as badly as an FD, still one would save on taxes
Another scenario of doomsday etc least probable.
I am not implying that one should invest all his money in equity, that's stupid ofcourse, but just invest 10lakh when he has time on his side and forget to mess with it.
Sometimes I feel most of us try too hard to create wealth trading even tick charts, and still failing miserably both financially and emotionally....
Thing is trading may not be for everyone, but the above can be achieved by most.
Vivek
ST
Nothing about yesterday's cuts in the US markets ?? Looks like the traders are stunned
View attachment 31459
Looks like a nice downtrending session.
View attachment 31459
Looks like a nice downtrending session.
Seems pretty run of the mill these days. We will open 60-100 points down. No big deal, right?
And here I was thinking myself to be so smart - when he will sell stake, there will be a huge fall and I will buy and become king of England.
I had same thinking in Bandhan too.
I had same thinking in Bandhan too.
There's a ready buyer at a pre-agreed price on the other side of the block order window.
From my posts on other forum :
Exit poll results are like predicting trend from BN option chain..
There will be multiple views and BN will move negating all the predictions
Heard in news:
Congress having edge in MP and Rajasthan
BJP favourite at Chhattisgarh
Again different channels will show different exit poll results.
And as counting goes on, there could be anxious positions(politically) will emerge.. And many retail traders will start behaving as if the results are the only important event for the markets.. Leading to much volatility..
My personal view:
Even in LS polls in 2019, major foreign investors will see whether any stable govt is formed..
Whether it is by BJP or CONGRESS is immaterial..
Because, in reality, there is no change in economic policy approach between these parties..
Only stable govt is all required.
I mean there is no major difference between these two main parties..
If any third front, without involving both BJP and Congress, is forming the govt will cause uncertain outlook in the eyes of the foreign investors.
Exit poll results are like predicting trend from BN option chain..
There will be multiple views and BN will move negating all the predictions
Heard in news:
Congress having edge in MP and Rajasthan
BJP favourite at Chhattisgarh
Again different channels will show different exit poll results.
And as counting goes on, there could be anxious positions(politically) will emerge.. And many retail traders will start behaving as if the results are the only important event for the markets.. Leading to much volatility..
My personal view:
Even in LS polls in 2019, major foreign investors will see whether any stable govt is formed..
Whether it is by BJP or CONGRESS is immaterial..
Because, in reality, there is no change in economic policy approach between these parties..
Only stable govt is all required.
I mean there is no major difference between these two main parties..
If any third front, without involving both BJP and Congress, is forming the govt will cause uncertain outlook in the eyes of the foreign investors.
I dont have answers for your questions. Im sorry.
But I have a question for you. Please tell me how you manage to post if you are "Banned".
Or is it some silly trick you do??
View attachment 31457
But I have a question for you. Please tell me how you manage to post if you are "Banned".
Or is it some silly trick you do??
View attachment 31457
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