Wednesday 1 November 2017

Spinning Wheel: Velocity of Money is the Vehicle of the rich.

Let me put up with you two scenario.


There are 2 businessmen with other things being equal or ceteris paribus.


Scenario 1: A. Donald, a Politician with a turnover of once a month and a 5 bagger profit.


Scenario 2: B. Patrick, a Businessman with a turnover of once a week and a 2 bagger profit.



The hypothetical test:

How much does each of them have at the end of 1 month? 6 month? 1 year?. If both of them start with USD 1,000 as their initial investment.



1) Situational M1:

S1: Donald will have = 1k x 5^1 =  5k

S2: Patrick will have = 1k x 2^4 = 8k





2) Situational M6:

S1: Donald will have = 1k x 5^6 =  3125k

S2: Patrick will have = 1k x 2^(4x6) = 16,777,216k





3) Situational M12:

S1: Donald will have = 1k x 5^12 =  244,140,625k or nearly USD 244 billion dollar.

S2: Patrick will have = 1k x 2^(4x12) = 10^18 or nearly USD billion billion dollar.


What about a lifetime of investing with the correct principles and disciplines? The results surely work wonders.



This shows that identifying bagger stock and activating the spinning wheel works wonder to many.


No, wonder buffet is so rich with the magic of compounding.



"May the blessing of the Almighty be with all of us"


God Bless!



Yours sincerely,


Dr. Lion.



No comments:

Post a Comment