At the Berkshire Hathaway annual shareholders meeting in 1999, Warren Buffett was asked how to make $30 billion. His advice? "𝐒𝐭𝐚𝐫𝐭 𝐞𝐚𝐫𝐥𝐲".
Ever wondered why?
Money with TIME makes you Wealthier. Let's understand this through a very simple example.
Investor-1 and Investor-2 are friends and both want to retire at age 60. Investor-1 started investing at age 30 and Investor-2 started investing 5 years later at age 35.
🔷 Investor-1 started with – Rs 10,000 per month as SIP.
🔷 Investor-2 started with – Rs 20,000 per month as SIP.
🔷 Both increased SIP every year by 10% (as annual step up) &
🔷 Earned CAGR return of 13% p.a
By the age of 60 years....
🔶 Investor-1 had invested Rs 1.97 crores in 30 years.
🔶 Investor-2 had invested Rs 2.36 crores in 25 years.
Who do you think had more money in their portfolio at the end?
✅ Investor-1 – Rs 9.8 crores
❌ Investor-2 – Rs 9.4 crores
𝐓𝐡𝐢𝐬 𝐢𝐬 𝐞𝐯𝐞𝐧 𝐚𝐟𝐭𝐞𝐫 Investor-2 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐑𝐬 39 𝐥𝐚𝐜𝐬 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 Investor-1, Investor-1 𝐬𝐭𝐢𝐥𝐥 𝐡𝐚𝐝 𝐑𝐬 40 𝐥𝐚𝐜𝐬 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 Investor-2.
Wondering how?
Investor-1 had 5 extra years of compounding to his advantage!
𝐓𝐡𝐚𝐭’𝐬 𝐰𝐡𝐲 𝐰𝐞 𝐚𝐭 𝐌𝐈𝐑𝐀 𝐌𝐨𝐧𝐞𝐲 𝐚𝐥𝐰𝐚𝐲𝐬 𝐬𝐚𝐲 𝐭𝐡𝐚𝐭 𝐧𝐨 𝐚𝐦𝐨𝐮𝐧𝐭 𝐢𝐬 𝐭𝐨𝐨 𝐬𝐦𝐚𝐥𝐥 𝐭𝐨 𝐬𝐭𝐚𝐫𝐭 𝐛𝐮𝐭...
TIME once lost cannot be got back. So, stop contemplating & stop procrastinating.
𝐒𝐭𝐚𝐫𝐭 𝐭𝐡𝐚𝐭 𝐒𝐈𝐏 𝐧𝐨𝐰!
