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:
You are thrown in prison for 10 years.
You stay in for 10 years.
Possibly because of the following:
Not sleep paralysis:
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:
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!