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uh we have a few questions for you uh you made a few points and I've written it down and you said compounding is not an initiative long-term compounding needs imagination could you elaborate on it sir see what we said is compounding is not intuitive intuitive means what you uh back of your head you say it is 10% 5% 50 don't do that particularly if it is long term say 100 years 50 years we live 100 years so so when you talk about uh say you you say 40 years and for next 60 years if you have to compound your savings at 15% what it will become don't give a just a jerky answer do your numbers it will be humongous number okay so the Journey of any country is not 5 10 years it's not about one election or two election there'll be hundreds of elections as we go forward it is be thousand year history why we bother about 5 years 10 years so we have to figure out when it is longterm because the base keeps changing at 15% today in 5 years it doubles in 50 years it goes 10 times you know so 2 to^ 10 every 5 years is doubling so 2 to^ 10 that is thousand times in 50 years will be th000 times but in between 50 to 55,000 become 2,000 times times you know and between 55 to 60 will become 2,000 become 4,000 times so you'll earn 2,000 times what you are earning today in just those five years so you cannot imagine it you cannot it cannot be intuitive you have to do your calculation particularly when it comes to long-term and that's why stock market is very good we are not good we as investor we are very short-term and we say why but companies are not built for one or two years it is built for hundreds of years so you have to be diligent and you have to be imaginative in terms of what can be in 50 years for this company second point that you mentioned is India has has a solid compounded past and rapidly moving from poverty to Prosperity could you elaborate sir yeah so of course it was a very poor country when we got independence uh even till about 85 we were I mean 95% of people were below below poty line that is a dollar per day per person okay now 90% of people are above poverty line in fact this government in last 10 years I think they have pulled out about 250 million people above poverty land staggering statistics for a country of the size now actually now we giving uh 800 million people 80 CR J get free food government can feed them without impacting your fiscal balance it means what we have reached to a stage where we get Roan we can take care now we have to talk about building the wealth you know so now the poverty phase is over and prosperity phase is coming so the policy makers must recognize this change in formulating the policies and you think and investors also and you think that they are going in the right direction the policy makers they're always right they're always right okay the third thing that you mentioned is that India is the ultimate next trillion dollar opportunity and don't bet against India yeah yeah so you know this kind of stories are not there all over because there is a lopa effect what is L effect when many variables come together that gives to rise of a Nation okay and that to nation of this size rising from 2 and half th000 you know global average $12,000 so for you to become to uh one of 5x 25 by that time global average will move from $12,000 to $20,000 so like in our lifetime we will not reach that Global aage so it will just keep going on and on and on it will become actually better see what happens is if you look at individual see you will start uh say I started earning from zero okay so till about till you have your car home family being set up and all you financially absolutely insecure even with even 100 cres you're financially insecure Market can crash and this can happen that but the moment you reach few th000 crores where I reached then you financially completely independent so now the country is reaching that we saved last year $1.3 trillion this year we'll do $1.4 trillion of savings there is lot of money in the system so when uh when you uh when you get this fin the country also get financial Independence you know we have $650 billion of Reserve that's one one sign of financial Independence you say I want to build my own defense I want to build my own manufacturing yeah so those are the signs of prosperity coming in now you tell so this kind of compounding which has happened in India it is just about the beginning now we have reached a size where this momentum itself will just Propel the country to because your desire My Desire poor people are coming from below they are very brilliant educated trained social media is there internet is there they can self train themselves and they have aspiration to everybody wants to make money so that Collective thing good value system hardworking honest and good business model it will just going to Bast tell me sir see you've been in the market for so many years and I have always heard you say that saving you don't invest in FD you don't invest in ppf or PF all your savings all your money is in equity markets now I suppose I'm starting out right now and suppose for the sake of just you know understanding how and where do I start you start with the mitual fund start you know so you give to see you keep hearing people the guys who like you give it to them talk to your friends who are doing it and then give it to two or three guys and then every month what you save that you don't sit on cash don't give it to the bank give to the fund manager and then you can always draw you want to go to Europe you have medical emergency anything you need 10 lakhs 20 lakhs draw it it's like a OD account you deposit you keep drawing it whenever you need that's how I have managed myself but how do I start research but that's not that big aalc SBI they're all celebrated guys you can see the track record you learn that very quickly they smart girl oh thank you sir yeah thank you and last question and and you have you've been a very very uh Aid reader and I know that you have a huge library in your office and you gift a book to whoever comes into your office I have received one at one time I would request you to tell us three books that you would recommend uh you know potential investors to start uh yeah so I think the I read first book was one upon On The Wall Street by Peter Lynch okay P yeah so that book was very common sense investing you know so it was ' 80s uh so that is very good then Common Stocks uncon by Phil Fisher and then third I would say if you got read the read the snowball biography of buffet or you can if you want to understand buffettology you can read uh you can read uh letters of Warren Buffet by uh kingham or somebody so these are the books which are absolute Classics and uh either you get it or you don't get it see well investing is something where you have to understand price and value price is what you pay value is what you get a million guys are in the market million guys know the price Nobody Knows the value most of the time company guy himself doesn't know his value but he knows his value because some M equation is happening so say you have 10 million T cement plant it is going at say $200 so you know it is a $2 billion worth but otherwise he doesn't know so you have to figure out this two million2 billion company at times you can get it for 100 million 200 million but if you don't know intrinsic value is 2 billion I mean you can't you can't check I mean if the watch you wearing if it is Christian or some fancy branded thing it might be worth maybe $50,000 but if it is a fake from Hong Kong or something it could be worth $50 you know so but to know the intrinsic value is very important and what is your methodology to judge the inp you know that's model the value investment and value trap you can get so that's part of the deal out of 20 some some will go wrong I all the shots are not going right thank you so much for your time I really appreciate it and uh you know really I know I pushed you here but thank you so much thanks
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