Suresh Darak

Founder -

[Suresh Darak @DarakSuresh]

What’s your prediction for Nifty levels from year 1 to 3? Does it compensate for alternate investment options which are much safer and assured? 💡

[Suresh Darak @DarakSuresh]

If you invest INR 1 lakh in a fixed income instrument which gives you around 10% returns, your capital will become INR 1.33 lacs at the end of 3rd year. Do you think if you invest the same amount in Nifty, you will get better returns?

🤔

[Suresh Darak @DarakSuresh]

In Equity investments, an investor needs to be lucky and an expert with entry and exits.
There is no predictability of returns.

[Suresh Darak @DarakSuresh]

Here's the chart for Bank of America for 50 years.

Bank of America is one of the world's largest financial institutions, serving individuals, SMEs & large corporations with a range of banking, investing, asset management & other financial & risk management products & services.

[Suresh Darak @DarakSuresh]

It was trading around $1 in 1973 and currently trading at $28.
When calculated, this is just ~7% annualised return.

The investors also saw an erosion of 90% of their wealth from 2006-2009.

Is everyone patient enough to sit with that kind of loss?

[Suresh Darak @DarakSuresh]

The path to success with money is in nurturing it.
Minimise Risk first, then Maximise Returns.
A disciplined approach to safe and stable growth lets you avoid risks in this journey & secure the ones you love.
#investing #growandconserve #commonsense

[Suresh Darak @DarakSuresh]

Below is the Volkswagen Stock for the last 8 years.

German motor vehicle manufacturer, known for the iconic Beetle & the flagship brand of the Volkswagen Group, the largest automotive manufacturer by worldwide sales in 2016 and 2017.

[Suresh Darak @DarakSuresh]

It was trading at ~250 in Mar 2015 & at present it is trading at ~130.

Investment requires patience, but sometimes even patience doesn’t generate returns. In equity investment, most of the time you make money by predicting volatility, that is not investment, it's speculation.

[Suresh Darak @DarakSuresh]

It's en vogue to have a side hustle in today's day and age. But this concept is not new to investing - Smart investing generates Passive Income.

[Suresh Darak @DarakSuresh]

Below is the Meta Stock for the last 2 years, formerly known as Facebook. One of the world's most valuable companies and among the ten largest publicly traded corporations in USA.
Even in a world dominating company, we can lose our hard earned capital, that’s the reality.

[Suresh Darak @DarakSuresh]

If somebody invested at ~ USD 380 in 2001, ideally the stock should have appreciated more than 300% till present date. And if they were targeting a return of ~15% p.a., Meta would have to triple its value in the coming weeks

[Suresh Darak @DarakSuresh]

Don't be as fickle as the markets.

When in doubt, take a moment to review your investment strategy and ensure it aligns with your long-term goals.

[Suresh Darak @DarakSuresh]

Below is the chart of Intel Corporation for last 20 years - One of the world’s largest semiconductor chip makers. While most notably known for their development of microchips, it also designs & manufactures flash memory, network controllers, GPUs, chipsets, motherboards, etc...

[Suresh Darak @DarakSuresh]

It was trading at ~$75 in 2022 & at the present day it is trading at ~$25.

If you had invested in this stock, you would have to change your goal-post many times over during this journey of declining value.

[Suresh Darak @DarakSuresh]

Opt for ‘what is’ rather than ‘what can be’ when it comes to decisions that matter to your family.

[Suresh Darak @DarakSuresh]

Below is the Citi Group's equity chart for the last 20-22 years.

Citigroup is the third largest banking institution in the United States; alongside JPMorgan Chase, Bank of America, and Wells Fargo.

[Suresh Darak @DarakSuresh]

Just wish that you have not planned your retirement corpus in this stock with the hopes of having a stress free retirement at the age of 40. Those who did might be wondering if there were better ways to invest their hard-earned money.

[Suresh Darak @DarakSuresh]

Check when your capital will double by Rule 72 (Divide 72 / Interest Rate). So if you earn 10% interest on your capital, then your capital will double in 7.2 year. This is the "Magic of Compounding".

[Suresh Darak @DarakSuresh]

Below is the equity chart for HSBC Holdings - One of the largest global banks based in London. It is the largest bank in Europe by total assets.

It was trading around 100 in October 2007 and at the present day it is trading around 40.

[Suresh Darak @DarakSuresh]

Your capital also multiplies if you get steady returns over a period of time. Equity is not the only way to multiply your return.