How to become wealthy with just Rs 5 lakhs


No, I am not referring to the song by John Lennon.

But imagine that you have Rs 5 lakhs with you and you are 30.
The date is 28th October 2004.

And suppose one of the following happens to you:

a) Prison

You are thrown in prison for 10 years.
You stay in for 10 years.

Possibly because of the following:



b) Paralysis

Not sleep paralysis:

Ever had sleep paralysis? That’s some scary shit!


But like:



c) Renunciation: You decide to renounce the world and become a holy person. You would be living on alms and doing this to pass time:


Then suddenly.
At the age of 40.
You either are released or regain your abilities or have a change of heart and want to join civilization.

So do you start from scratch?

Since you could be feeling like this:


But what if I say, you would be worth atleast Rs 1 crore 55 lakhs 70 thousand!
And earning an income of Rs 3 lakhs plus just in FY 2014-15


This is assuming you would have invested Rs 5 lakhs in ITC on 27th Oct 2004 and held onto them.
Back then the share price opened at Rs 36.27 (adjusted for splits and bonus).
The share split 10:1 and also offered bonus of 2:1 on 21st Sep 2005.
It again offered bonus of 1:1 on 3rd August 2010.

All this by just staying invested in ITC.
You wouldn’t have even had to do a lot of research to know about the company.
ITC touches almost every aspect of one’s life.
Advertises so much that only a most ignorant person wouldn’t be aware of its existence.

This is the magic of compounding and long term investing!


  1. Nice thought! But only if the decision was taken then. How about putting the same 5 lakh today and with a lot of effort, hard and smart work you make 5 crores (PAT) per annum in next 5 years.
    Still it's all about 'taking a decision when it matters '!

  2. Thanks for your comment Gagan!

    You are absolutely right! 🙂

    However, I wanted to show, that sometimes a stable style works better than a portfolio that is churned often.

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