Ultimate usage of Power of Compounding !!! But can it happen in real ?

POSTED BY Krishna Kishore Appala ON August 30, 2012 2:50 pm COMMENTS (2)

Hi All

After reading an article by Subra which deals about Power of investing, i wonder,

Like a One time investment of say just 1000 rupees at a return of 10% (let it be Inflation adjusted return) left untouched for

200 years will generate a Outstanding corpus of approx 19,000 crores.

(Of course i agree, its not for you or even your known great grand children. But what if JRD TATA  some 150 years back thinking that even if i make it big, i cant enjoy)

But in real, How long are the possibilities of making this true.

I mean considering the Legal issues & Bank Rules and Other Constraints

Thanks

KK 

2 replies on this article “Ultimate usage of Power of Compounding !!! But can it happen in real ?”

  1. Dear Krishna, I also read that article of dear Subba. I feel you are missing the point. Whether it’s possible or not is not the point but the point is if you do invest & let the compounding work, it ‘ll do magic. How much ‘ll be the end result is any body’s guess.

    Thanks

    Ashal

  2. The power of compounding is enormous, true. However since the returns will in general:

    1) Lag inflation +
    2) Taxes paid will make the return lag inflation even more

    the corpus 150 or 400 years since will still be a ‘huge amount’ but just keeping pace with inflation if there is an equity component.

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