Sizing of Positions: Part II

Amar Pandit , CFA , CFP

This is a continuation of last week’s Nano on Sizing of Positions as I wanted to get an important point across. While I had written lines, I chose to edit all of those as I felt this visual is worth a few hundred words at least.




What do you think?

The writer in me still wanted to leave you with some explanation.

The takeaway message is that in the beginning stages of investing, the priority should be to contribute more money into investments rather than striving for higher returns on a smaller amount. Over time, as the investment base grows, this approach can result in more significant gains in absolute rupee terms, even if the percentage returns are modest. This principle underscores the value of consistent investing and capital accumulation as foundational strategies in wealth building.

How much you save and invest >>>> How much you earn on those investments.