This is How Compounding works - MUST WATCH | Mohnish Pabrai | Stocks | Investment

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  • Опубліковано 12 кві 2024
  • Mohnish Pabrai emphasizes that compounding is the magic of investing, where wealth snowballs over time through the reinvestment of returns. He illustrates how even modest annual returns can lead to substantial wealth accumulation over long periods. Pabrai advocates for patience and discipline, highlighting the power of staying invested and allowing compounding to work its wonders.
    Renowned investor Mohnish Pabrai emphasizes the profound impact of compounding in the stock market. According to Pabrai, compounding is not just a mathematical concept but a powerful force that can significantly amplify wealth over time. He advocates for a patient and disciplined approach, focusing on businesses with enduring competitive advantages to harness the full potential of compounding in stock market investments.
    What is Compounding? Compounding in Stock Market
    Watch our other video here: • Super Investors
    Connect with us here as well: / thefinancialeconomics / the_financial_economics
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    #compounding #mohnishpabrai #stocks #investment #investmentstrategy #investing #thefe

КОМЕНТАРІ • 323

  • @CaedenV
    @CaedenV 16 днів тому +13

    I came here to knock the video due to the thumbnail... But yeah, the math here is sound. I mean, the idea of stock picking for a 2-3x return is a bit of an unrealistic expectation every year, and will probably even out with loosing picks to bring the average back in line... But outside of that, this video is spot on.
    My kids are just starting to hit those middleschool years, and I am trying to lay that foundation of understanding and expectations that when they do start working, to start investing aggressively and early. They may not want to live with mom and dad forever, but as long as they are aggressive savers and building wealth, then they are more than welcome to live with us as long as they want. We are even considering doing at least a partial "match" for their Roth when they start working to help them put their money towards other things that they need as a young adult (like a car, furnature fund, future house down payment, etc).
    Because at a young age, maxing out your Roth nearly guarantees that you have half a million dollars by retirement. Do that for 4-5 years and you should have an easy $2M by retirement age. Even with inflation, that is enough safety net so that they can have a basic retirement safety net in place. $2M won't be crazy money in 60 years when they retire, but it will be enough to put a roof over their head, keep the lights on, and keep food on the table. As long as they continue investing, even a little bit, then they will have an awesome life ahead of them.
    This last year I turned 40... And man did I get a late start lol. I did get into a house early, but I had a ton of debt early on, and wasn't in a career with any kind of retirement plan options, so I didn't really start saving until 35... But as we paid off debts we saved extremely aggressively to make up for lost time. In the last 5 years, through a lot of hard work and sacrifice, we have made up for the last 15 years of not investing.
    The temptation is to say we are caught up, and to enjoy our income now that we are caught up to where we ought to be... But we still have 20-25 years of compounding ahead of us. Continuing to sacrifice and save aggressively for another 5 years should put us in a place where we hit critical mass. It is the point where even if we stopped investing, it should compound the rest of the way to our goal for our current lifestyle. We can then step waaaay back and either work a lot less to maintain our current lifestyle and not worry about retirement investing for 20 years. Or we can keep working hard, save only 10%, and continue growing retirement to the expanded lifestyle target. Both of those options sound amazing to me! So we continue with the sacrifice.
    The one thing I wonder though is the goal of building wealth significantly beyond needs. I mean, if I have $2.5M in retirement then I'll never run out with my current lifestyle, even when accounting for inflation, and not factoring in any kind of social security. If we continued to save like crazy, I kind of fail to see the point. I could potentially hit $10M if I really tried... But... Why? My goal with money is security and safety. Accumulating significantly beyond that doesn't provide more security (security theater maybe), so all things equal I would rather spend that money on making my world a better place. Money for it's own sake is fine if you genuinely enjoy the game of it. But most of us have other goals.

    • @TheFinancialEconomics
      @TheFinancialEconomics  15 днів тому +1

      Thank you for sharing this will definitely help a lot of viewers!! ❤️

  • @DanielFerreira596
    @DanielFerreira596 11 днів тому +1047

    Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

    • @JimmyA.Alvarez
      @JimmyA.Alvarez 11 днів тому

      There’s much uncertainty now, my question is what stocks can be the next wave in terms of growth for the next decade?

    • @Erickruiz562
      @Erickruiz562 10 днів тому

      I agree just reached my goal of $500k monthly trade earnings. Setting realistic goals is an essential part of trading

    • @JanineJ.Cromwell
      @JanineJ.Cromwell 10 днів тому

      That's impressive, have you always had guidance?

    • @JanineJ.Cromwell
      @JanineJ.Cromwell 10 днів тому

      Please educate me, i'm willing to make consultations to improve my situation,

    • @WyattSmith-v
      @WyattSmith-v 10 днів тому +1

      One of the fiduciaries I deal with is Jennifer Lea Jenson. Just check the name. There would be a letter with the necessary information to set up an appointment.

  • @cyrilmilton
    @cyrilmilton 8 днів тому +1099

    Thanks for the video. I finally established a way to increase my net income per month.
    My 2024 goal is to pay off the house by Sept 2024 (8 years total into a 30 year @ 4%). I have no debt other than mortgage. My 401k, HSA, IRA and emergency funds get maxed out. The mortgage is my last piece of debt left. I don't have any school loan or CC debt. I've made a lot of sacrifices over the years.

    • @suziehovic
      @suziehovic 8 днів тому

      Congratulations on taking the steps necessary to get yourself out of the financial bind you were in.

    • @mykreid
      @mykreid 8 днів тому

      That's truly remarkable. I hope you don't mind pointing me towards their direction.

    • @cyrilmilton
      @cyrilmilton 8 днів тому

      She's Sophia Elaine. One of the finest portfolio managers in the field.

    • @cyrilmilton
      @cyrilmilton 8 днів тому

      she's mostly on Telegrams, using the verified user name.

    • @cyrilmilton
      @cyrilmilton 8 днів тому

      @PhiaElaine :That's her Handle!

  • @Emily-le2op
    @Emily-le2op 4 дні тому +207

    Given the uncertain economic conditions and heightened global tensions, I'm considering investing over $400k in stocks. However, I'm uncertain about how to minimize potential risks.

    • @benjaminsmith3469
      @benjaminsmith3469 4 дні тому +2

      Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.

    • @billybrannon6394
      @billybrannon6394 4 дні тому

      Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

    • @alicegomez7232
      @alicegomez7232 4 дні тому +2

      Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

    • @stevensmiddlemass2072
      @stevensmiddlemass2072 4 дні тому

      Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.

    • @alicegomez7232
      @alicegomez7232 4 дні тому +3

      Monica Shawn Marti is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

  • @darnellcapriccioso
    @darnellcapriccioso 19 днів тому +750

    Minus the increasing wealth gap, it's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.

    • @richardhudson1243
      @richardhudson1243 19 днів тому +5

      I get it, navigating today's challenges is tough. Protecting what's left is crucial. Consider seeking advice from a financial advisor for investment direction. And remember, a failed business doesn't mean giving up.

    • @Aaronduckstein49
      @Aaronduckstein49 19 днів тому +4

      Exactly. Failed businesses are just steps forward. Don't lose hope. When choosing a financial advisor, find someone who understands your unique needs-I learned this through experience. Now, I earn six figures from investments alone, and even more from my businesses.

    • @tatianastarcic
      @tatianastarcic 19 днів тому +4

      How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

    • @Aaronduckstein49
      @Aaronduckstein49 19 днів тому +4

      Tenley Megan Amerson is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look-her up.

    • @monicavazquez280
      @monicavazquez280 16 днів тому +1

      I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

  • @ElkeHoffman233
    @ElkeHoffman233 День тому +114

    Big ups and big love for the awesome daily content.
    Because inflation devalues your savings, it compels everyone to be an investor. Meaning you need to preoccupy yourself or offload your time/energy to the study of investment opportunities both of which are very costly. Thanks to Walter James Henry for showing me the appropriate way to get into bitcoin investing and trading with his trade signal and investing guidelines. Investing and trading are more than just having TA skills. There is a big component of discipline and emotional maturity, that one has to work on! Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path with Walter James Henry>

    • @ElkeHoffman233
      @ElkeHoffman233 День тому

      he's mostly on Telegrams, using the user.

    • @ElkeHoffman233
      @ElkeHoffman233 День тому

      @Gainwithwalter7

    • @Luissierra12373
      @Luissierra12373 День тому

      Henrys prowess as a trader shines through meticulous analysis, strategic decision-making, and a remarkable ability to navigate market fluctuations with precision and confidence.

    • @Layanalisa
      @Layanalisa День тому

      Walter James Henry . understanding of market indicators is impressive. he knows exactly when to enter and exit trades for maximum profit. his siignals are top notch

    • @Johnbottis
      @Johnbottis День тому

      he's recognized as 'Mr Walter One of the finest portfolio managers in the field. he's widely recognized; you should take a look at his work.

  • @CameronFussner
    @CameronFussner 23 дні тому +77

    Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

    • @lowcostfresh2266
      @lowcostfresh2266 23 дні тому +5

      Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

    • @hasede-lg9hj
      @hasede-lg9hj 23 дні тому +3

      Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

    • @parrish8386
      @parrish8386 23 дні тому +1

      @@hasede-lg9hj I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?

    • @parrish8386
      @parrish8386 23 дні тому +2

      @@hasede-lg9hj Please pardon me, who guides you on the process of it all?

    • @hasede-lg9hj
      @hasede-lg9hj 23 дні тому

      @@parrish8386 Amber Angelyn O’ Malley is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

  • @SeanJohns-ze8ie
    @SeanJohns-ze8ie 7 днів тому +12

    Very informative video you have, I have been able to understand the messages you pass but there are some other challenges that may come about when taking some other risks

    • @cherylhills3227
      @cherylhills3227 7 днів тому +1

      I don’t think anyone that has dedicated time,money and efforts to scale to new net worths in whatever field of investments hasn’t reach some of the challenges that you would face personally.

    • @cherylhills3227
      @cherylhills3227 7 днів тому +1

      My brother has been able to help with such issues through a CFA he was able to link me up with. Since hiring my advisor? It’s been better handling such financial turmoil that may happen

    • @TheDuke792
      @TheDuke792 7 днів тому

      Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed, been privileged to be guided under the stewardship of an extremely gifted investment manager by the name ERIC PAUL ELMAR

    • @JoshuaEdson22
      @JoshuaEdson22 7 днів тому

      Sure.. Eric Paul Elmer has a really unique gift of being able to looking far ahead down the road to spot future investment portholes and possible major mishaps, so he helps me make the safest investments and also helps me hedge all my investments against possible future downturns

    • @RobertDamanii
      @RobertDamanii 7 днів тому

      Ok… I’ve been able to do some research on the Web and I found his site, he has his license so that’s reassuring

  • @modernsoccer1860
    @modernsoccer1860 18 днів тому +17

    this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.

  • @Elly-gu5wn
    @Elly-gu5wn 18 днів тому +14

    The parents is the key. Thats why the wealthy is always wealthy.

    • @TheFinancialEconomics
      @TheFinancialEconomics  18 днів тому +1

      Hmmmm Agreee

    • @luciferplays2019
      @luciferplays2019 9 днів тому +2

      Totally! But i guess "dreams" are to actually blame. If each generation just focuses on the basics and lives happily it is worth it. In today's world we are pretty much forced-fed everything which we don't really need! And then we dream more n more n more. A never ending hunger and lust for 💵 and materialistic things.

    • @TheFinancialEconomics
      @TheFinancialEconomics  9 днів тому +1

      @@luciferplays2019 I can't agree more on this!! The real truth

  • @williamyejun8508
    @williamyejun8508 8 днів тому +9

    I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.

    • @alexyoung3126
      @alexyoung3126 8 днів тому +3

      Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!

    • @jameswood9772
      @jameswood9772 8 днів тому +1

      I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.

    • @johnlennon232
      @johnlennon232 8 днів тому +2

      How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.

    • @jameswood9772
      @jameswood9772 8 днів тому +3

      Melissa Maureen Ward a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @johnlennon232
      @johnlennon232 8 днів тому +2

      Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

  • @Prayukth
    @Prayukth 5 днів тому +2

    The power of compounding with such powerful examples should be taught in schools..that will eliminate the "why am I learning this stuff question" that some have.

  • @kentsmith6918
    @kentsmith6918 21 день тому +6

    I love his explanation - he's right - it's a very simple concept.
    But it's probably a little too boring for most people to get excited about.
    It takes a lot of discipline & patience, but it's astounding how much compound interest can grow one's investments.

    • @TheFinancialEconomics
      @TheFinancialEconomics  21 день тому +3

      Very true. Compounding is a game of laziness but in this fast phase era people want to do something or the other.

  • @senm6115
    @senm6115 23 дні тому +12

    Some crazies here saying there were no concept of shares in the 1600's. This is just figuratively speaking. Understand the concept is more important.

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +2

      Exactly!!

    • @paulbo9033
      @paulbo9033 22 дні тому +4

      Yeah but this example is awful. Given the native Americans effectively had their land stolen and were subject to a genocide, this story is fist biting for even the least politically correct person. The best example I've heard of compounding is a grain of rice doubling for every square on a chess board until there is no more rice left in the entire kingdom. Only takes 64 doubles. You cannot get your head round it until you visualise it or do it yourself on a calculator.

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +2

      @@paulbo9033 That's a classic example.

  • @passdasalt
    @passdasalt 4 дні тому +2

    The key is, don't be tempted to spend it.
    Life is hard. Most of us at some point pull those meager funds we've built up to pay for whatever emergency or fancy that comes up. I certainly did.
    But...
    Start saving early. Be disciplined.
    Just more advice from an old man. Take it or leave it. Even on a low income, wealth can be achieved.

  • @yudisoesanto9647
    @yudisoesanto9647 21 день тому +10

    I input the 24 dollar @7% for 450 years into compounding calculator. It came up to only $27million.

  • @rahuldwivedi4758
    @rahuldwivedi4758 23 дні тому +19

    The world doesn’t work like that. Firstly, which company would you have invested in 1600s? Secondly, considering most companies go bust in a few decades down the line, chances of losing singnificant portion (or probably all) of that invested amount would have been very high no matter how diversified you’d have been. Thirdly, if this 7% rule holds true, inflation growing with the same rate holds true as well so everyone would have been needing billions of dollars just to survive today. Lastly, what about gold prices? Wouldn’t they have gone infinite by now since that has been a form of currency since ages?

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +7

      It’s just an example of compounding & how it works

    • @chahem
      @chahem 22 дні тому +1

      Everyone knows this buddy

    • @UPAKHOSALA
      @UPAKHOSALA 19 днів тому +1

      the example shouldn't be utopian or
      lie 😅😊​@@TheFinancialEconomics

    • @TheFinancialEconomics
      @TheFinancialEconomics  7 днів тому +1

      Example is an example no discrimination here 😀

  • @nkosanamsibi7182
    @nkosanamsibi7182 27 днів тому +8

    ❤ From South Africa

  • @callmevenu
    @callmevenu 18 днів тому +1

    Wonderful explanation, Compounding is very complex topic but not anymore after watching this 😀

  • @proudofodisha7094
    @proudofodisha7094 22 дні тому +8

    Big house, Expense car, iPhone, big fat wedding mein BIG amount spent karte ho & jab investment karne ko koi kehta hai life kab enjoy karenge kehte ho .....5 days marriage enjoy ke liye 10Lakh hai but investment ke liye nahi hai....yahi mentality MIDDLE CLASS & POOR people ko aur jyada down lee jata hai.....& RICH get Richer ..... Foreign country ke jaisa agar early 20s se koi income karna start kia & thoda save karke investment Kia to early 40s mein uske pass sufficient Paisa hoga early retirement & life enjoy ke liye..... REMEMBER average life expectancy in india is 65 now.....with medical development after 20year it will 75 age.....so from 45 age to 65age ......Good 20 yo 30 year for happily enjoyed ....... Young age mein thode paise se kya hi enjoy kar loge better to achieve big amount at age 40.....They life will happier

  • @DatsNoiccee
    @DatsNoiccee 10 днів тому +1

    Phenomenal video. Explains the relation between compound and time to anyone at any age!

  • @AnandSingh-lk4vk
    @AnandSingh-lk4vk 24 дні тому +3

    Thanks for the excellent information.

  • @basikgyaan2362
    @basikgyaan2362 27 днів тому +5

    Best of the best video thanks a lot

  • @poornima5761
    @poornima5761 22 дні тому +2

    Well said sir time values for each one of them. 👍👍

  • @dancingnachos3634
    @dancingnachos3634 20 днів тому +3

    Superb and simple explanation ❤ a lot of dim witted comments

  • @user-vh1ls2xr4u
    @user-vh1ls2xr4u 22 дні тому +1

    What ‘suggested’ stock should one buy for a child ISA .. ftse world + sp500??

  • @ImpulseToAdrenaline
    @ImpulseToAdrenaline 5 днів тому +1

    Dude just changed my thinking in life. - Thanks.

  • @AbdulBasit-ne4od
    @AbdulBasit-ne4od 10 днів тому +1

    Phenomenal video. Impressive

  • @R_o-c_k_s_t_a_r
    @R_o-c_k_s_t_a_r 18 днів тому +1

    ❤Please add inflation in calculation.❤

  • @bhavankumar4974
    @bhavankumar4974 16 днів тому +1

    In 1990 no one talked of compounding or long term There is no organised thing for compounding like today ( evey one say if we invest in titan or Infosys they are now multi baggers out thousands of listed stock who knows which grows and which will be like anil Ambani stocks )

  • @dr.premlata674
    @dr.premlata674 13 днів тому +1

    Thanks for this video

  • @RRYadav-rj3pz
    @RRYadav-rj3pz 23 дні тому +2

    Very Nice Video.

  • @RPS-iw4ci
    @RPS-iw4ci 23 дні тому +7

    Bhai utni compounding kro jitna uske maje lene ke liye Zinda raho....amar nhi hai insaan..

  • @samonaro65
    @samonaro65 20 днів тому +1

    It's too easy and way too hard to commit to DCA into the market (even small amounts) early and reach $1mil in 30yrs...the later you delay the later that $1mil moves out. Everyone wants a far easier track

  • @Mercury2wo
    @Mercury2wo 5 днів тому +1

    Yeah, cos that’s how real investing and real life works - it grows at 7% a year and you never touch the money for 50 years

  • @tomf9292
    @tomf9292 23 дні тому +42

    It’s sad that there’s only a couple thousand views but all these idiot “influencers “ get millions of views on BS. Then all these people complain they have no money. Sad what we teach our children in this country.

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +3

      Thank so much and very true!

    • @haris1328
      @haris1328 20 днів тому +1

      Mr Monish has a big holding in India in a company named Rain Industries, which has been an underpoformer since many years now

    • @malkov0001
      @malkov0001 19 днів тому +3

      Only 5% of the population will be really rich. That's why there are few people watching stuff like this.

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +1

      @@malkov0001 People want to be Rich but don't want to know 'HOW'

    • @TheFinancialEconomics
      @TheFinancialEconomics  13 днів тому +1

      @@LegendScroller You are truly a legend!! Thank you!!

  • @250089
    @250089 20 днів тому +1

    Also take account effects of inflation

    • @TheFinancialEconomics
      @TheFinancialEconomics  20 днів тому +1

      Stocks beat the inflation with ease 😉

    • @RolfStumpfRailMedia
      @RolfStumpfRailMedia 20 днів тому +1

      You need more than 7% to stay ahead of money depreciation nowadays. Inflation is much higher than we're told. Finding the right compounders helps​@@TheFinancialEconomics

    • @TheFinancialEconomics
      @TheFinancialEconomics  7 днів тому +1

      Yup

  • @mx4073
    @mx4073 10 днів тому +1

    Yes but everyone who made that deal died and never saw the benefit. Compounding is amazing and you can compound to the moon but I do all my investing and compounding figures around my retirement age so I'm realistic and keep my figures revolving around my life expectancy.

  • @osarma
    @osarma 24 дні тому +4

    What is the value of the Land they have SOLD as on todays date

  • @yabezyoshua1513
    @yabezyoshua1513 22 дні тому +3

    Excellent information for compounding

  • @shaduwy
    @shaduwy 13 годин тому +1

    Great video but where can I get information about investments with 7% returns

  • @jigneshsavaliya4703
    @jigneshsavaliya4703 23 дні тому +5

    Amount of inflation will lead to the same position that you started.

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +2

      It’s was an example for compounding & how it works

    • @HugoZierth-jj2pd
      @HugoZierth-jj2pd 23 дні тому +1

      And taxes. But it's a great vídeo. Thanks for.sharing.

    • @TheRPatel1
      @TheRPatel1 21 день тому +1

      Look like his comment hurt your sentiments. Jignes made valid point

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +1

      @@HugoZierth-jj2pd Thank you!

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +1

      @@TheRPatel1 Inflation is a negative aspect of Investing, rather than focusing on inflation why can't we focus on getting returns that will beat the inflation with a big margin.

  • @EcoMoney.
    @EcoMoney. 10 днів тому +1

    At 2:35 mins when he says 100 yrs period, u take 2 to the power 10 what does that mean? Does ‘2’ means 2 times ( I.e doubling the money) and ‘10’ means 10 yrs in context of the anecdote he is explaining? But then where does 100 Yr fit into the equation?
    Similarly at 8:20 mins what is meant by ‘2 to the power 5’ for 50 Yr period if money doubles every 10 yrs?

    • @TheFinancialEconomics
      @TheFinancialEconomics  9 днів тому +2

      1. Since it doubles every 10 years for 100 years it will double 10 times, so 2^10 is 1024 times ( to make math simple he excluded 24 and kept 1000 only) 1000 times your initial investment.
      2. Again here 2^5 here is 32 times, 32 times your initial investment.

    • @EcoMoney.
      @EcoMoney. 9 днів тому +1

      @@TheFinancialEconomics Thanks a lot. I figured it out after thinking a bit post putting the question. Its quite profund and thanks for sharing this video

    • @TheFinancialEconomics
      @TheFinancialEconomics  7 днів тому +1

      That’s great 😀
      Thanks for watching!!

  • @andrewereynolds5840
    @andrewereynolds5840 19 днів тому +1

    💎 Constellation ☀️ Energy Corporation (CEG) 💎

  • @ElixirEcho
    @ElixirEcho 21 день тому +11

    The problem is, I don't want to be rich when im old, I want it now.

    • @TheFinancialEconomics
      @TheFinancialEconomics  21 день тому +3

      There’s nothing wrong in spending money on yourself while you are earning it but it’s also important for you to save and invest enough to increase your standard of living as years pass 😇

    • @emunahbenuyah2853
      @emunahbenuyah2853 20 днів тому +2

      You see, if you don't come from wealth, it is a big sacrifice you embarking on the wealth journey because it's not only for you but for your coming generations, that's why it takes alot of time,patience, hard work and determination.
      But if you want it quick then you are planning to enjoy it alone in your own time and then leave your coming generation the choice of working their own path to their financial freedom.❤

    • @balesh_chemagination3359
      @balesh_chemagination3359 19 днів тому +1

      Rule number 1:- Wealth is made, but not for the person who is making it alone..otherwise it can't be made..

    • @MrColonelbbc
      @MrColonelbbc 19 днів тому +1

      The problem is… I don’t want to be old and not rich…

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +1

      @@emunahbenuyah2853 Fact!

  • @mikep4869
    @mikep4869 12 днів тому +1

    This is a concept of personal finance that should be taught at all levels of education.

  • @pulakchatterjee7586
    @pulakchatterjee7586 22 дні тому +3

    Tell me the compounding effect of 2 companies which u hold. 1 ) rain Industries 2) edelweiss Finance
    😂

  • @AadityaBhatta
    @AadityaBhatta 16 днів тому +2

    What about an over 6% inflation rate, which halves the value of money every 12 years.

    • @TheFinancialEconomics
      @TheFinancialEconomics  16 днів тому +1

      Beat it.

    • @rawtrader8841
      @rawtrader8841 13 днів тому +1

      More inflation more money printing exsess money printed will surely be diverted to market and upcoming asset class
      That's the best and only way to fight inflation

    • @TheFinancialEconomics
      @TheFinancialEconomics  7 днів тому +1

      Yup

  • @RajaRam-lb5gz
    @RajaRam-lb5gz 20 днів тому +5

    What’s the point of making millions of money at old age of 60 or more if you don’t have the health or time to enjoy it ?
    There should be a balance you have to maintain of spending your money and enjoying your young life….
    If you are saving the money for your future generations, yes, then definitely you can see this long compounding magic to work but it will not work for you.

    • @TheFinancialEconomics
      @TheFinancialEconomics  20 днів тому +2

      Valid point Raja Ram ji

    • @hakimlukka5511
      @hakimlukka5511 20 днів тому +2

      Then maintain your health also

    • @modernsoccer1860
      @modernsoccer1860 18 днів тому

      ​@@hakimlukka5511 this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.

    • @TheFinancialEconomics
      @TheFinancialEconomics  17 днів тому +2

      @@hakimlukka5511 Thats the secret sauce !

  • @sachinsingh-eu7qq
    @sachinsingh-eu7qq 2 дні тому +1

    What about inflation?

  • @ornellabetoe6093
    @ornellabetoe6093 27 днів тому +5

    J'aime beaucoup votre chaîne.

  • @zteaxon7787
    @zteaxon7787 10 днів тому +2

    But they pretend the stock market is a given return when it lost half its value in 2008.
    My GF had a stagnant investment for 3 years just now it made like 5% profit.

  • @Musicalppsingh
    @Musicalppsingh 2 дні тому +1

    Om namah shivay har har Mahadev Jai hind vande matram ❤️❤️🙏🙏

  • @carolmaz8675
    @carolmaz8675 17 днів тому +1

    No librarian in the U.K. is making 40,50 000 at age 18

  • @knowledgeseeker5499
    @knowledgeseeker5499 19 днів тому +1

    Fanatics video to educate people about value of investment and not touching until fully mature

  • @RakeshSharma-zd1be
    @RakeshSharma-zd1be 14 днів тому +1

    What about inflation

    • @TheFinancialEconomics
      @TheFinancialEconomics  14 днів тому +1

      Equity is the only asset class which can beat inflation with a high margin

  • @prnkrthk18
    @prnkrthk18 15 днів тому +3

    He said 2025 is 9 years from now! Now it 9 months away 😂

  • @luciferplays2019
    @luciferplays2019 9 днів тому +1

    But those ppl are not there to enjoy 24 trillion!!! Jiyo ki har din aakhri ho! Don't over-invest in future and forget the present.

  • @artixunited
    @artixunited 20 днів тому +1

    Only question is are you sure you are going to live till you are 68 or 69? What grantees do you have. I understand you need to save, but his logic is not very good because life is a bubble. All you can do is invest and hope for the best. That is the only strategy. Don't think about or calculate the outcome. Just try to do it.

    • @TheFinancialEconomics
      @TheFinancialEconomics  20 днів тому +2

      Earn and invest whether one will live till 68 or 69, today’s job is Earn, Save, Invest & Spend

  • @9-5guy33
    @9-5guy33 9 днів тому +1

    Eistein never said it though...

  • @eatsleeprepeat9422
    @eatsleeprepeat9422 19 днів тому +2

    But 10000 dollar at 30 worth more than 10 Million dollar at the age of 68 ?

  • @sidds2004
    @sidds2004 9 днів тому +1

    No wonder that the power of compounding is the 8th wonder.
    But did you take the NOTIONAL TAX to be paid at the end of each financial year.

    • @TheFinancialEconomics
      @TheFinancialEconomics  9 днів тому +1

      1. No income no tax
      2. High income high tax
      I would be happy to be in the 2nd situation

  • @abrahamvarghesekadavil8510
    @abrahamvarghesekadavil8510 15 днів тому +1

    😄wonderful

  • @SlackersIndustry
    @SlackersIndustry 14 днів тому +1

    Sounds great but what if the indians had build a trading post on that land and grown it over the years who knows how much it would have been worth not only that many of the descendents could have made a good living for many generations instead of just waiting fo centuries to cash in the 24 trillion or whatever it was

    • @TheFinancialEconomics
      @TheFinancialEconomics  14 днів тому +1

      Valid point but investing seems to be easy money than setting up a business and grow it

  • @Zaen89
    @Zaen89 14 днів тому +1

    Im 34 am I too late to get on board?🤔

  • @oswaldsoares2174
    @oswaldsoares2174 21 годину тому +1

    Sound is very bad

  • @hugoviegas1292
    @hugoviegas1292 17 днів тому +1

    Explain that math in each 10 years the money double.
    5000 after 10 years 10000 28 years
    More 10 years 20000 38
    More 10 years 40000 48
    More 10 years 80000 58
    More 10 years 160.000 68
    For 5 million i gess would take a little more time

  • @aruntam1
    @aruntam1 22 дні тому +3

    Bro forgot that inflation is also compounding..

  • @chinchowpowpook
    @chinchowpowpook 19 днів тому +1

    With the compounding knowledge Why is he still not rich yet giving this speech?

  • @aamirabdullah2503
    @aamirabdullah2503 20 годин тому +1

    Q: would you like to have 1 million dollar in your account today or you’d like to have a penny which doubles every single day?

  • @quokkapirquish6825
    @quokkapirquish6825 17 днів тому +1

    Warren Buffett still alive in 2024!
    He sure has lived a loooooong life

  • @boywonder6659
    @boywonder6659 6 днів тому +1

    The thing is at 68 your knackered and can’t enjoy the money.

    • @TheFinancialEconomics
      @TheFinancialEconomics  5 днів тому +1

      Earn, Save & Invest this is the process and spend as you progress in this process, you need not wait until you turn 68.

  • @dylanlau8858
    @dylanlau8858 12 днів тому +1

    50 year old now...is it late to start?

    • @TheFinancialEconomics
      @TheFinancialEconomics  12 днів тому +1

      Not at all Dylan!! You have plenty decades of compounding left. Cheers 🥂

    • @Techguidein
      @Techguidein 6 днів тому +1

      Never it's late. You can start for your self as well as your future generation.

  • @ssamirpanda1
    @ssamirpanda1 12 днів тому +1

    In your name lot of whasapp groups !!! Mostly fake in think .. u must do something about it ..

  • @JustinRoberts-vw7fb
    @JustinRoberts-vw7fb 2 дні тому +1

    I've noticed how financial markets tend to go through similar phases repeatedly. John neff) really breaks down a solid strategy for keeping investments steady, even when dealing with the ups and downs of cryptocurrency.

    • @willsonjac0
      @willsonjac0 2 дні тому

      I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...

    • @FredrickNelson-fc5mk
      @FredrickNelson-fc5mk 2 дні тому

      I have a quick question. I'm an aspiring trader, am looking study some traders and earn off their expertise rather than investing myself and lose money emotionally.

    • @MorrisBen-wm7in
      @MorrisBen-wm7in 2 дні тому

      Focus on long term investments in property, stocks, and bonds. Avoid copying, daytrading and 'chart astrology'.
      Diversify across different geographies, industries, and value chain stages - to reduce your risk. You can do this with ETFs, or by selecting different stocks yourself. This is the best way to invest for more than 90% of people

    • @willsonjac0
      @willsonjac0 2 дні тому

      Even with the right technique and assets some investors would still make more than others, as an investor, you should've known that by now, nothing beats experience and that's final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I'm buying again.

    • @KathielBliss-mp2sj
      @KathielBliss-mp2sj 2 дні тому

      It is essential for you to have a mentor to keep you accountable
      1. Limit your spending/cut off retail therapy.

  • @deepeshsao1008
    @deepeshsao1008 24 дні тому +2

    I guess it didn't happen in Rain Industries, though. 😕

    • @TheFinancialEconomics
      @TheFinancialEconomics  24 дні тому +1

      He is in profit buy price was below 50

    • @deepeshsao1008
      @deepeshsao1008 24 дні тому +1

      @TheFinancialEconomics My point was on the reference that money did not double for him in Rain Ind. He first bought Rain in 2015 at 30 Rs. and sold in 2023 Dec at 150. So if money had to double in 2 years as mentioned, it should have been at 240 bucks at least. 30,60,120,240.

    • @deepeshsao1008
      @deepeshsao1008 24 дні тому +1

      @@TheFinancialEconomics Apne comment pe hi like maar rahe ho 🤣🤣🤣

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +1

      @@deepeshsao1008 Consider his entire portfolio for such calculations

    • @TheFinancialEconomics
      @TheFinancialEconomics  23 дні тому +1

      @@deepeshsao1008 Kya kare pyar jo karte hai apne aap se😁

  • @sushilsharma5577
    @sushilsharma5577 21 день тому +2

    They talk a lot but never show their pnl

    • @TheFinancialEconomics
      @TheFinancialEconomics  21 день тому +2

      You are just 1 click away from knowing his net worth 😀 and they are not fno traders to present their pnl to attract clients

    • @sushilsharma5577
      @sushilsharma5577 21 день тому +1

      @@TheFinancialEconomics yes but you never know whether they bought or sold basis the philosophy they sold to public..like motilal oswal would say buy right and sit tight on good stocks but you should see their account break up to know mid and small caps

    • @TheFinancialEconomics
      @TheFinancialEconomics  21 день тому +1

      Agreed 👍

  • @dariodolcetti6256
    @dariodolcetti6256 7 днів тому +1

    All Right Perfect so i just Need to manage and ket manage a Family fund for 500 years then my ancestors are gonna be the Next Rothschilds 😁

  • @szabolcsnagy7638
    @szabolcsnagy7638 5 днів тому +1

    Tittiri tittiri!! Teach this to your youngsters in your home country so they will stay and WE can get our culture and jobs BACK!!!!!!!

  • @naveenbangalore362
    @naveenbangalore362 День тому +1

    such a imaginary XXXX.... not in real world lot of ifs and buts
    1. What happens when there are years like recessions and depression decade when there is no 7% yield?
    2. There is something like replacement theory? say you have one single house,(aka manhattan land) for example instead of living you sell and it doesnt mean you can or have opportunity to invest 100% proceeds , & you may need a portion of sometimes to buy a cheaper place or alternative arrangement?
    same thing people say if some one started a sip of 5k per month in 1995 you would have a crore etc?
    Just a gk, these are when done in ideal conditions, there are lot of other things & few which off-the cuff.
    1. Hidden costs
    2.Tax
    3. un recoverable costs
    4.Cost of replacement

    • @TheFinancialEconomics
      @TheFinancialEconomics  День тому +1

      Just an example to show the power of Compounding

    • @naveenbangalore362
      @naveenbangalore362 16 годин тому

      @@TheFinancialEconomics In real world the power of compounding will not have linear exponential curve, lot of ups and downs, so more stress should be given on patience, if compounding is 8th wonder, patience is 9th wonder and investor should brace for many ups and downs & manage volatility year on year it would not grow same at fixed rate, however it just average out at end with up-down growth. So main thing in real world is patience and time of exit... there may be phases when market is continuously down for couple of years and it might have reduce overall average so that should kept in mind

  • @eajinabi
    @eajinabi 22 дні тому +6

    I can't wait when I am 96 and incapable of walking to then enjoy my money

    • @TheFinancialEconomics
      @TheFinancialEconomics  22 дні тому +2

      As you grow keep enjoying,! Plan a target amount and stick to it, once achieved it’s your life to live!

    • @marvelouscampaign
      @marvelouscampaign 22 дні тому +2

      You can enjoy your money way before 60

    • @eajinabi
      @eajinabi 22 дні тому +1

      This is a generic reply

    • @eajinabi
      @eajinabi 22 дні тому +1

      @@TheFinancialEconomics To promote such things, you need to disclose the 7% ROI every year nonsense. Past returns does not guarantee future gains.

    • @TheFinancialEconomics
      @TheFinancialEconomics  22 дні тому +1

      ​@@eajinabi If the stock market isn't going up, it could mean the economy is having trouble. And if the economy is having trouble, it might affect whether you keep your job. Stocks are not meant to calculate returns every year give longer time to yield positive returns.

  • @nitsir125
    @nitsir125 14 днів тому +1

    4 million dollar at 68 age nothing

  • @golgol5625
    @golgol5625 21 день тому +2

    $24 in 1600...+7% in 2024 is 69,013,329,515,021. 😂😂 69

  • @bala247online3
    @bala247online3 8 днів тому +1

    Please talk in indian accent

  • @samirhazarika6677
    @samirhazarika6677 21 день тому +1

    Baseless story......... It's Nonpurpos mony..... Just a paper

  • @amitjasrotia8495
    @amitjasrotia8495 10 днів тому +1

    Einstein: Bhechod Maine KB bola 😂

  • @shekhar.prasad
    @shekhar.prasad 24 дні тому +1

    wait till 68 to retire, pollution would kill most of us before that

  • @queengamerz9414
    @queengamerz9414 20 днів тому +2

    👎

  • @sheryarkhan9971
    @sheryarkhan9971 8 днів тому +1

    Nonsense

  • @vajravelumani1827
    @vajravelumani1827 22 дні тому +2

    Can you please sell your house car for 24$ ?
    Your great grand kids will have 24 trillion USD in 400 years
    I'm sure your properties will not be worth so much in 400 years so it's a good deal for you

  • @saidafridi2169
    @saidafridi2169 19 днів тому +1

    Why is he not barking in hindi

  • @kapildatika3285
    @kapildatika3285 19 днів тому +1

    Yrr ye English bolne se kuchh Jayda fark padta h htt bakwas

  • @abeed6690
    @abeed6690 16 днів тому +1

    Can monthly bill wait for next 50 years 😂

  • @godglobalobservationdevice7869
    @godglobalobservationdevice7869 20 днів тому +6

    What is the use to all this money, when you are dead and just the money in the bank is compounding. I want to enjoy the money today. Not when I am 85 years of age and have 85 Billion in my bank account.

    • @prettynatural1973
      @prettynatural1973 14 днів тому +1

      😂and that is why you will never be financially free. You consumer you!

  • @sareenchanganda5550
    @sareenchanganda5550 8 днів тому +1

    Nonsense