Blog, for those who don't understand how to trade in stock market, market terms & market jargon's. Visit this blog to update your knowledge on stock market & Economics of the World. Also add on your comments and upload your knowledge of finance on to it,even your stock tips are invited.
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
Reader Friends, if you enjoyed this article then please do share it with your friends & colleagues through Facebook and Twitter, also do drop in your valubale thoughts in comment box...
So, grab a fresh hot cup of coffee, turn on your net & browse on to www.bhavikkshah.blogspot.in & take out few minutes to get to know the most interesting world of investment... Till then HAPPY INVESTING, don't forget to Share !!
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.