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Thursday, June 16, 2016

PANDIT & THE POWER OF COMPOUNDING !!!

Hello friends, after a very long time coming up with an interesting short story on market, till now we have heard stories narrated or heard as in foreign context, today I have this Indian story – the story is quite interesting and very simple in understanding – It goes like this

Once upon a time in a very small Indian village there lived a poor Brahmin poet. His financial condition worsen to such a level that he was not able to feed his wife and a new born baby. Tired with his misery and poverty he decided to seek help from the king. He went to the king’s palace where, King was playing chess with one of his minister. King told him to visit his darbar (court) the next day and recite some of his poems. Next day the Brahmin went to his court and on the permission of the king started reading his poems and songs, King was pleased and happy with his creations & granted Brahmin to wish something as a reward. Brahmin thinking for a second pointed his finger towards the chess board & requested King to place one grain of rice in one box of the chess and double that in the next box till the enitre chess board is filled. King laughingly said “Just rice grains ! - King was astonished by this and said, "You don’t want gold coins or land or big house !”. Brahmin said “No, just one rice grain in one box an double that grain in next till the entire chess boxes get filled, doing so I will feel that I received my reward.”     

King and the court started laughing on the simple thinking of Brahmin and king ordered his courtier's to bring rice grains. King's men started putting one grain in one chess box and two grains in second and four grains in third and eight grains in fourth and so on, when they reached tenth box, they needed to put in 512 grains. Till the twentieth box, this number increased to 5,24,288 rice grains, and when they reached half on 32th box this number increased to 214,74,83,648 rice grains and within hours this number went into billions. Ultimately, the King had to surrender to the intelligence of the Brahmin and gave away all of his riches to him because Kings promise is a promise to full fill his wish and this all started with just One grain of rice.


Moral of the story – Never under estimate the Power of Compounding (Read one such real story on compounding - Here ), and investing minimum amount every month in SIP,  can create great wealth for your retirement -  READ SUCH STORIES HERE

                                           !! HAPPY INVESTING !!


MORE SUCH SHORT STORIES - here


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Disclaimer
This is a personal blog and presents entirely personal views on stock market. Any statement made in this blog is merely an expression of my personal opinion. These informations are sourced from publicly available data. 
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15 comments :

  1. Replies
    1. Thanks so much Arora sir, glad u visited and u liked the post.. thank you pls do read rest of the short stories too
      Wishing you a wonderful weekend sir :)

      Delete
  2. Wow, this was some brilliant story, the power of compounding defined and how? kudos

    ReplyDelete
    Replies
    1. Hii Datta
      Yes power of compounding should not be underestimated..the real example is wipro just http://bhavikkshah.blogspot.in/2010/11/power-of-compounding.html?m=1
      10 shares for Rs.1000 is today's whopping Rs.52 cores
      So start investing early in great instrument and see the power of compounding
      Thanks and happy that you like the story
      Wishing you beautiful and joyful weekend:)

      Delete
  3. I never understanding the ABCD of trading. So never commented on the post, though I follow your blog. This post I understood. Very nice and lesson to all.

    ReplyDelete
    Replies
    1. Thanks ma'am am so happy to see you here .. thank you so much and there are couple of more short stories too pls click on Labels : STOCK MARKET STORIES

      I hope you will enjoy reading it they are off market
      Wishing you a wonderful week ahead :)

      Delete
  4. Hi shah ji this is deepak tandon fca from delhi joined your blog just today hope to share mutual knowledge and experience with you regards..

    ReplyDelete
  5. Great story..power of compounding in easy way. Brilliant.

    ReplyDelete
  6. Was a great admirer of your trading skills...but now fascinated by your story telling abilities..another feather to your cap and loved the story on generating earnings from previous earnings..

    ReplyDelete
  7. brilliant story, it also teach us how to do Saving......

    ReplyDelete
  8. That's a great story.....Thanks for sharing...!

    ReplyDelete
  9. Wow! what n innovative way to make a layman understand the power of compounding! Keep up the good work!

    ReplyDelete
  10. That's very interesting! Enjoyed it

    ReplyDelete

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