Stocks 1 lac to 3.5 Crores in 10 years. Is it possible?

Stocks : 1 lac to 3.5 Crores in 10 years. Is it possible?

Posted by Anand Kumar on 30 December 2009

Unrealistic expectations from investors and impossible to acheivable promises made by advisors are making the life of small investors a misery in stock markets

Whenever I meet people or talk to them about investing in stocks I realise that they are chasing a oasis.

Ask yourself "How much monthly returns I want from markets?"

Then check the table below which shows at that monthly compunding rate how much your Rs. 1 lac will be after 10 years.

You will now tell me that your expectations were high.

Cool down. Set realistic targets and invest accordingly.

Return per month -->> Amount after 10 years

1% -->> Rs. 3.3 lacs

2% -->> Rs. 10.75 lacs

3% -->> Rs. 34.7 lacs

4% -->> Rs. 110 lacs

5% -->> Rs. 3.5 Crores

10% -->> Rs. 927 Crores

20% -->> Rs. 32000000 Crores

But I see advertisements promising 30% per month etc. Do they really understand what is 30% ?

A person who do not know maths is a dangerous advisor. Do not fall prey.

I too come across many investors who ask if our paid services can generate 5-10% per month?

Do you expect me to say yes?

This is the reason I recommend booking profits on many stocks at 10-15% raises even though they are very good long term bets. In most of the cases they fall back again. Else one will see a stock trading at Rs. 100 reach Rs. 11000 in 10 years at 4% a month. How many examples we have like this in history?

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Posted by Anand Kumar on 18 January 2010

ICICI Direct sends me a mailer (advisory) to buy a share trading at 178 for a target of Rs. 180.

Guess who is making money?

No service fees, FREE of cost.

Who is the winner? ICICI Direct with a brokerage of 3 rupees wether you make money or not.

Posted by Dakhsh on 30 December 2009

Glad to know that you made money. You made almost 2K, buy one Jsw Holding n forget it with that 2k.

Anand bhai, 30%? I have seen google ads showing as high as 100% returns per month and some of them also giving services for dirt cheap and claims 85-90% accuracy!! Crap!

I wonder if people really subscribe them? I strictly advise not to by the way. And anyway it takes just a month or two to know the advisor's potential.

In a bull market every cat n dog starts an advisory service, you need to understand how reliable they can be down the line 2-3 years?

Advisory services cannot grow if the subscribers do not grow along with the service provider. Like at Winfromus we always keep thinking something or the other for the well sake of the members.

We want them to grow, because we understand its a give n take thing ultimately.

Today early morning only I called up Anand and we discussed for a small package and also told him that I would run a SIP from January 2010 and all our Winfromus members need to follow it.

I believe in staying 2 steps ahead of all ...

Dakhsh