How or where can I double my money in one month? Which stock is gonna double in a month? These are the top two FAQs(Frequently Asked Question) by clients when I was a channel partner of a stock broking firm.
The name of this blog is Samanya Buddhi (Samanya means common, Buddhi means sense) which means common sense, which points towards logical thinking.
So lets do the logical thinking on the above FAQs.
How much money do you have in your wallet right now? What is the minimum amount of that money you can spare for investment? Don't worry, it can be anything, may be a quarter of a dollar or euro or rupee or any other currency.
So suppose you ask me that quastion and I recomend a company who's share will double in a month and you invest that quarter. The quarter gets doubled at the end of the month so you book your profit and ask me the same question again. And the same process is repeated again. Now you have a dollar or euro or rupee or any other currency you first invested.
Now suppose we go on like this, say 64 times, without taking out any money and in 64 monthes your money gets doubled 64 times. (64 months is only the period of 5 yrs and 4 months)
Now believe me, that amount will be more than all the currencies available on the earth.
Another thing is me too have the quarter to invest. ;-) So why didn't I do it myself?
This is the reasoning I used to to tell my clients. And they were like, "WHAT...???!!!! I thought you are a broker of this reputed firm.."
This happens because of Authority bias we have in our head. In simple terms we look for traits which point towards knowledge and intelligence and let that authority do the thinking for us which freed up our brain for other tasks. This trait was usefull in encient days when our ancestors used to stay in jungle. But now it is most of the time irrelavant. People were considering me as authority and asking me such question without doing their own thinking.
Watch out for it. Smart people like marketing person or advertisers take advantage of this fact for their own profit. (Ever seen any actor on TV dressed in doctors attire recommending some toothpaste??)
But the basic question still remains how to grow our investment and how much growth can we expect?
We will get to that in further posts. No hurry for now..
Sumit
The POWER is when,
you use ODDS
to get EVEN..
