Can 9 women deliver a baby in 1 month?

Amar Pandit , CFA , CFP

Some things take Time… Likewise Compounding (the greatest wonder of the world) takes time. The best thing you can do as an investor is to Get Out of Compounding’s Way and let Time create money for You (rather than trying to Time and disturbing the natural compounding process).

P.S. Compounding may seem slow at first… Very Slow… But it shoots like a rocket after Year 20… By the way, 95% of Warren Buffett’s wealth was created post his age 60… He is 89 now.

Just Imagine the compounding from his age 30 till 60, 65 and then till age 80.  Rs.1 Lakh invested at 15% became Rs.87 Lakh till age 60, Rs. 1.84 Crore by age 65 and Rs.17.25 Crore by age 80.

Yes 1 Lakh = Rs.17.25 Crore… So Rs.10 Lakh = Rs.177.25 Crore… That is the power of compounding.

P.S.P.S. In case you thought otherwise 🙂

Warren Buffett answered the above question with his quote “You can’t produce a baby in one month by getting nine women pregnant. It just doesn’t work that way.