What can 14% p.a. returns do!!

What can 14% returns do? 

Let us see...

In 1971, Govt’s Enemy Property Office had shares worth Rs. 29 Crores value, mostly belonging to people who left India during Indo Pak war of 1965. In the year 2015 i.e. 44 years later, the shares were valued at 10,000 Cr. 

That is approximately 345 times in 45 years!

Can you imagine what return per year it must have taken to grow by 345 times? 

Approximately 14%, that is all.  

Over 44 years that 14% made 29 Crs turn into 10,000 Crores !!  This was a static investment on which nothing was done,  This 14% p.a. returns is not counting the Dividends that would have been paid out on these shares. 

This is what equities can do over long periods of time, create real wealth. !! Holding for 20 or 30 years can create wealth; buying and selling every 1- 2 years will create lots of paper work and not wealth !!

Moral of the story: 

Invest for really long periods to create wealth

Source for the news on Enemy Property:

http://www.business-standard.com/article/markets/enemy-shares-to-be-dematerialised-115041700037_1.html