Build ₹100 Cr Portfolio with Mutual Fund SIPs | Ft. Gajendra Kothari | EP04

0:00 What exactly is a bear market and What kind of behavior does it have? Extract the history of 40 years of last 50 years Take it. Sex maybe anyone has 12 or 15 minutes a year 13% is not an exact return. Forest The Golden Rule Why People Don't Know Markets Stocks Are Always Ending in Bear Markets Return to their rightful owners. First rule If you want to create wealth, you have to have it Faith in the Future. Pepsi was the second largest brand After Poke in US. and today it's not even In the top four. steve jobs says that you have to be crazy enough to change the World. if you're not crazy enough you can Don't change the world. So should I spend Rs. 10 lakh from this salary of Rs. 25,000? Can I reach the crore mark? So if Today we all want to become independent, so we These 25 years are coming, which is 22 years from 2025 to 22 We all have these 22 years of golden years There is a chance. So as much as you can earn from income

0:45 And the income can be compounded at 12% and 15% Every person can make 10 crores by stepping up Is. So I finalized the gold with lets I took it and I feel that my goal is According to me I have a long time. I money and I've decided that I So, should a common investor invest in a thematic fund? Should I put money in? So sir today if a new investor factors If you want to understand the funds a little, then what is correct he should dabble in it and if he does If you want then with how much amount should you do it good lot of people if you want to start you should go with the combination of we have to Life's Second Life Begins When You Know that they have just got one life they so why not leave that guys who are my guests today He needs no introduction. You have seen them everywhere Rs. Lakh per month He has become very famous through SIP. But

1:31 Before that his very tremendous and long There has been a journey about which we will talk today will learn. If you wait till the end of the episode So today you will learn whether you are 25 years old or He is 40 years old. How to create your portfolio can do the design. After that you will learn How can you use SWP to increase your profits? You can plan for your retirement. If If a situation like Japan happens in India What should you do in your portfolio? These You will understand. Apart from that, which sector and when Will work? How to identify it and How can you use sectoral ratings to grow your business? Can take returns from 12% to 18% Are. Its blueprint will be revealed. So this Watch the episode till the end because this is a This is a master class in fund management and this You can do the fund management yourself and None other than Gajendra Kothari will teach you

2:17 Sir. So let's welcome. so gajendra sir thank you You are so much you took out time for this of mine today to come on the podcast. Well when I announced to the audience that I am my I'm launching a podcast and I asked Who would you like to see in Should Be My Guest The first and most frequently mentioned name is yours What is the matter? so it is my audience also who has who has Deep Respect for You And they want to hear you again and again want to listen because i think repetition is the mother of master so people should learn from her will find it. So sir let me start straight away. The very interesting point is that Markets will widen in September 2024 Fallen. Correct. SIP stoppage ratio increased. The people Stopped my SIPs. Now we have seen March After April, the markets have seen some improvement Have taken revival. and now we are back to what we are

3:03 Let's look at the data. So SIP stoppage ratio It is falling. We So I think it is a very good time for you too. will be. whatever you have here now people Investments will start increasing. Tax I must have given it. What did you see during this time behavior among its investors? Absolutely. So Sanjay ji whatever your profession is it is just behavioural management There is nothing else. Technical things are 1%. 99% behavioral Management happens. So when new investors come, we tell them They say we don't manage your money. V Manage you. Manage your behavior. Right? so the problem What is? The whole world thinks cyclically. If the markets have grown then we become happy. If the market goes down then you get disappointed Are. Six months market since September When it fell a lot of people became disappointed and Highest SIP stoppage we saw. we have

3:51 Molded Ourselves to Think Counterintuitively. When markets go up, we are happy It does not happen at all. Ok? we mean the reverse we don't have fun because our next Installment is going at a high rate And when the markets go down we get a lot of I feel happy. and i always believe and Warren Buffett says that if the next In 10, 12, 15 years you will earn a lot of money You are going to earn and invest money Don't want the markets to go up. Hmm. And all our viewers are young viewers. in 40s, in 50s, in 30s those who have 10 The investing period is 15-20 years, There is an accumulation period. you should be very Happy if the markets are going down. So when it made a bottom on April 7 in March Yes So what do we follow Sanjay ji? Very It is simple and it appeals to our viewers as well. It will be quite useful. Generally you are an investor sir

4:36 See two, three, four mutual funds Invest money in mutual funds Cap, Flexi Cap, Small Cap. technically You About the Entire Market Technically. So NSC 500 should be your right Benchmark. So I don't track Nifty 50. Or I don't even track small caps. I track Nifty 500. my definition This was that till Nifty 500 gained more than 20% I won't put mine on it until it breaks Is. That Lamsam should not be done. so my jo SIP is getting its timing automatically Still working. We So I am going for a job of 30-40 lakhs per month This is when Sussex and Nifty 500 fell by 15% 10 It broke then it reached 15 then it went up to 18. So The SIP dates which were going automatically There was timing in that. Yes So I didn't think about it. means this Let the small money go to the small falls. Hmm. When should I wake up? when should we wake up

5:24 And see that now I am able to understand a few things Is. Was 20% 20% technical if we take the definition then this This is called a bear market. if all time high The market has fallen below 20%, it's called A bear market. So let's double click on the bear market. Are. What exactly is a bear market? and what is its behaviour. Absolutely. So bear market so look at the markets It is like a pendulum. We The pendulum never stands at one place. the pendulum of a clock He keeps going from here to there. So the markets too are always in the markets the price is not the fair value Is. Ok. If you look at the average return of Sussex, we what is 40 years old? About 13-14% But you can see the history of 40 years of last 50 years. Take it out. Sussex probably won't be able to win any year I did not give exact returns of 12 or 13% Is. We Either 15 is given or 10 is given. either 20

6:09 I have given it or I have given five. The average of all these is 13 or 14, whichever we call it. In other words, the markets are either very extreme It will be available or it will be very cheap. Benjamin Graham The person who was Warren Buffett's mentor used to say one word the mr market We That Mr. Market is a very moody guy. The day he is in a good mood you will feel very He will give good price. in September 2024 85,000 I took it to the highest level. and his mood it will be bad without any reason I will not tell you the reason now I am giving you 7,000 Sensex. We So his job is to serve you. You should not make Mr. Market as your master. We It is to serve you. We So he will give you the rate every day. Look when you buy a home. Right? of the house

6:56 If a board is put outside. You have 2 Bought a house for crores and as soon as you bought it The next day ₹ crore became ₹ 10 lakh. Will you sell that house? not the next day Will you sell it? You have planned to live for 10, 15, 20 years I have taken it and let's take it home 2 of crore and after one month of that Rs. 1 crore 80 Even if it becomes a lakh you will not be disappointed. you forget what you took and When you keep it for 20 years, wealth is created. So Mr. Market should also give you this number every day have been. If these are daily numbers in real estate If they started coming then people wouldn't stay at home could find it. People keep changing houses Always That take this today and that tomorrow. Yes So although there is a daily market in gold The rate comes but we buy gold As per the jewellery, we forget about it. Yes Today the market is trading at an all time high for gold Used tobe. We I have heard you say this in any house Those people have sold their gold.

7:42 Has not been sold. never gonna sell this Are. So when we see this behavior in real estate We do. They do this behavior at home Are. So we show this behavior to our equity Why not do it with a portfolio? We that when it is cheap one should buy more and when It has increased too much or you should sell it Do rebalancing or else sit idle It doesn't matter, compounding will keep happening But as soon as the market grows a little People start selling We If my flour starts trading then Mr. Market gives you the price every day This doesn't mean that you should feel his feelings everyday have to take We so what i did was till i got 20% of my price If I don't come I won't do anything We after 20% so today I will give you one I will give you context of my portfolio 80% of investments in equities are long The term is equities. I will come in cash 20% Now. Ok? In liquid fund I am getting 7% return

8:28 Used to be. We So my simple logic is if that 20% If a correction comes, I will put it aggressively I will start it. So I will reduce my weight by 20 to 25%. I will put the money in it and finish it. ok why 20 to 25? Because this is what The crash came, it was a very covid time It wasn't like you didn't know where the bottom was. We The Indian economy is doing well. Everything Is good. So look at hist historically 5 25% does not fall above 30% in seven years Is. We Last time we fell into Covid, when we There was uncertainty. before that it had fallen in 2008 when the global 58% when the financial crisis was going on It was broken. Yes. So this time it didn't seem like that. So I thought it would bottom at 25-27%. So by then I'll finish all my money and This is a golden opportunity because after 2020

9:14 I haven't got this chance yet. Yes But unfortunately what happened according to me Unfortunately, it came down to 18% from there It bounced back. on april 7 Yes 18% that was on the tracker. incidentally the day 18% was lost intraday that day so I had I received calls from many investors. not for Withdrawal. Sir, now tell me to deposit your money. you say it You are not there at all. We So he is speaking from the front. So the one in front When I got a call from them, I said, okay you Do not wait till 20% because many people That the SIP is not working out like mine. Very People might have done a SIP of Rs 1 lakh and Didn't even do much top up. So I told you to top up by 10-15% Turn it on. When the fall came, people paid 10% Many people paid 15% and 18% Well done top up. About one day that day we had our office

10:01 My condition had worsened. We have 700 Transactions were punched. Wow. The cut off time is 3:00 PM are we And we later saw 700 transactions Value 10 crore net investment on that The Day Came Without Even Calling a Single Client. So this is basically a mentality. so whatever you say Sir they are generally people product sales I do it. So for example, someone of theirs will also be a favorite brand So if there is a downfall of 202% then you will have to stand in line will stand up. with your credit card I will buy it. I will buy more. They don't do this in butt stocks. So when Over the years, you have told your clients this How is behavior taught? What has been your educational tool as you said 99% is this and 1% is your skill Investment Absolutely, were those the methods that Because if our viewers see all this today If they listen then they will also develop their mindset Can do it. So this muscle memory has to be developed. this one

10:46 Does not come during the day. I've read Warren Buffett, Charlie Munger, Peter Lynch, all of them, Howard Marks who was a huge contra He is considered a guru of investing. in I read them all and I mean in day one when When I read it, I understood it. Look, let me tell you one thing. Investing What is the Golden Rule of Finance One One? Bye Low, sell high. We You would say this to a four year old kid too, right? Then he will understand. If you tell this to your grandmother also then you will understand It will come in. Buy low, buy expensive Sell it. Yes. We are shopkeepers, what are businessmen We do? buy cheap, sell expensive Are. But we are in the upside of the stock market Why do you do it? Right now the defense sector is at its best So, I am getting calls from people. Sir in defense should I put it in? Gold is currently moving at the top Is. I got a call from one of my clients yesterday. My Kids want to invest in gold. He said Sir, he has just woken up. not so many years

11:33 Woke up. Now he has to invest Rs 2025 lakh in gold. FOMO is happening. FOMO is happening. For them Looks like this cycle will continue. The One Golden Rule Which People Don't Know Markets are always cyclical. We So, whichever sectors are good, whichever markets are good they do it, later they spoil it also, that's why Average return comes. If you look at Sussex over the last 5 years Sensex has given 202% compounded. So the coming 5 years are actually going to be wasted. are going to. We can't expect 20% returns going forward Forward. it has to give you below 10% Return. Then the long average will be 14% of the term. Sure. So you must believe this in day one This is cyclical. when bad times come Aggressive. So for me that 20% factor and this was said in every meeting with investors When we talk with them, we tell them this Let us tell you the returns you got in 5 years

12:20 Make it, they are not coming. This was a bonus for you. Be prepared to get suboptimal returns. Maybe 10% have come, maybe eight have come. 12 have arrived So that's very good. So when we tell them again and again, then Although they are very picky about what you You are telling me sir it looks like 18 but maybe that grooming comes in handy and then when something like this See when the house catches fire Will you give me knowledge on how to run and save myself? Nor does anyone understand it. No time. For this you must first do fire drills They fall. You should go to foreign countries. every month There are fire drills. We There might not even be a fire. ever felt This will not happen in many cases. but that Muscle memory is developed while doing fire drills Is. The preparation is done. The preparation is done. the day when fire again It happens, that's why you should look at foreign When there is a fire in the country, it is very rare

13:06 Casualties happen. Because people know what to do. Stampede in our country A fire breaks out. How many losses are there? people doesn't even know. people would panic Are. Reacting and the Same Thing in Stock Market like the stock market is on fire At once And at that time the newspapers would exaggerate Markets crash, you know so much loss It happened because you did not prepare. The job of a good advisor is to serve their clients Keep it prepared. True And keep in mind that such opportunities will come. So many of my clients say Hey sir the market fell by 20%. my goals what will happen? So I say only one thing, this was factored In the plan. This was already built into the plan. So We have thought about why you are getting this Was. sure So when you navigate from Bombay to Pune in Google Maps You go, if you come from Borivali then you Have to fact that there is half an hour traffic jam

13:51 will get So you should do yours accordingly start the journey Right But why do we think like this in investing? it is linear we will keep getting this you tech Taking it for granted is the problem isn't it that because throughout our lives we have majorly I have invested in it in FD and Fixed Return Instruments for Indians very favorite it is said that if our If there is an investment of ₹ 100 then approximately There is FD of around ₹50. Yes. So because in FD you will get 6-7% annually I keep meeting you. There doesn't seem to be any risk. So Same expectations from their stock market also happens. Absolutely. because they are used to Guaranteed returns. Whether it is PPF Whether the post office is a government office or not There should be schemes. well they think so in gold too It comes guaranteed. In the property They also feel that it comes guaranteed. Empty

14:36 there's a stock market where they think It does not come guaranteed. but people forget that Are there guaranteed returns anywhere in the world Not there. The guaranteed returns in FDs too Yes, it is only for that time period. You If the FD is for one year then after one year Rates are subject to change. In PPF, every Rates change quarterly. Sukanya Rates of change in prosperity every quarter There are. Right? So but actually accept one more thing Where there is safety, there is safety of returns. There you have to see that inflation risk Is it there or not? Only he can provide safety in this world. Government of india is giving 6% as safe so that's why It is safe. But any real estate builder will give you 10% discount. If he is paying Taka then he is not safe. or 15% If he is giving it then it is not safe. as high as The more volatility you go for the returns You will have to take the risk. and people Volatility is considered a risk.

15:22 Fluctuations are considered a risk. this risk It doesn't exist. One of my gurus Nikam is talking to me It is said that to suppress volatility is to Suppress Returns. If you look at volatility If you are suppressing then you will reduce the returns They are suppressing it. We Right? So the more ups and downs there will be The more wealth you will create. You will get that much chance. if you go to a theme park We Then you will have the most fun in theme parks What does it come in? Joey Wright that goes up and down. The one that goes up and down the most is It’s fun. Otherwise you might think I'm useless I spent Rs. 1000. No fun at all. He went away like this. I did not feel it at all. Right? So you get the highest volatility Then you enjoy it. Also in the markets If there is highest volatility then you Returns are made. The only thing you have to take care of is when you are choosing the theme do you go to the park So when that most expensive, most risky one

16:08 Why are you not afraid when you sit in a ride? Seems like? Because you have protection. seat The belt is worn. Do you know that I am safe here? Pay. No matter how much I go up and down I am comfortable I will reach. So you should have faith in that system. We Look, we travel in a plane. Very There is turbulence and it is the rainy season now If there is, there are air pockets everywhere. When Turbulence occurs, what is the first thing to do do you do it? Do you wear a seat belt? First without pilots Brother, that is your muscle memory There is muscle memory. You should put on your seat belt first I mean boss when turbulence is coming then Sit quietly and put on your belt. You can't get down. You can't even get down. Right? Felt Belt Come sit down. So wear a belt in the markets too You have to sit. Why are you jumping there at that time? You? Hum is it because Gajendra Sir's kya It is like banks have trust in FD

16:54 ok there is a bank here there is gold gold they know i have ornamental The value is so if I look at mutual funds I have nothing I have nothing units are credited for which I don't know and I've never known did not even try to do it so what There is no uncertainty because I don't have anything physically good question so mutual at one time You will also need physical certificates in funds We used to meet Wright and I think that period it was great because when people had if there are physical certificates then people We put it in the locker and forget about it. A sense of ownership comes. A sense of ownership comes and you keep it in a locker You put it in and forget it. And you put it in the locker and forget about it Money is made. Today you and I often watch TV shows My grandfather's MRF shares are for and I didn't even deem it physical Got it done. And see today what property he left behind. 100 crores was 50 crores. Anything Arbitrary Numbers too. Arbitrary numbers. Why? Because they

17:41 we forgot to dematerialise And today she has become wealthy. But because now the buttons are available on the app. We You can buy and sell in a second. So That's why and see we come from monkeys generation. We Monkeys Cannot Sit Idle Quietly. Right? so you know if there's an empty room This and I will snatch your mobile phone from you, Should I take it and ask you to give me 3 hours? You will go crazy sir. infact this The experiment was done by husband and wife. I am telling you about the real experiment. It was done in a foreign country. stately home You and your wife live in a luxurious bungalow I have all the luxuries nearby. There are no empty windows and no gadgets. you have to spend 45 days and i think if If you survive for 45 days then you You will get a million dollars. You will get a lot of money.

18:28 I think they came out on the fourth day Were. while eight outside looks like 45 Days. It seems easy, food and drink are available Is. You can do drawing, painting, art or anything else. You can. Right? Mobile is not a gadget but People become restless. So the same thing happens in our investing today as well We feel we are not taking any action Are So maybe we are not doing anything right. Yes, in investing I am actively involved The Worst Thing You Can Do. The more patiently you sit, the more You will create wealth. So is Warren Buffett say it's an area to Transfer Money From Impesh To The Stock market is a perfect device to Transfer Money From The Inpatient Impatient to Patient And in Bear Markets Stocks Return to their rightful owners Right you are saying it right So you come to the one who deserves it

19:13 Let's go. You don't need to do anything. So I My last purchase in last 5 years did heavy buying in 2020 and 5 I haven't made any heavy purchases this year Is. My SIP is going. I am waiting for That moment. 5 An opportunity will come in seven years At that point, go all in. The Best Time to Invest Is When You Don't feel like investing. When so much bad news is going around you. We are talking about the third world war. The world will end and you will know Trump will give. Always remember one more thing. The World Never Ends. Hmm The world always seems to be ending every time It seems that the world will end but the world If it happens, it will end only once, then after that We won't even be able to podcast right that will be the final so till the time you are seeing this podcast the world is alive it is alive it will only It appears to end so the world doesn't end

19:58 Yes See Human Ingenuity is the Best Thing We Humans can manage every problem covid came, there was no session, vaccine came Went We right that is the power of mankind na that which When the engine speaks it will cry anyhow Crisis came. humans come out of that Crisis. you have to have just faith in the Future. So the first rule if you want to create wealth Right, you have to have faith in the future. We If you are not an optimist and don't have faith No, you can never become wealthy through capital Markets. No, you made a very good point about Faith It is very important to have it. But along with faith comes fear. and you're always scared because you've He said, we are monkey generations. now here We talked about safe products. so safe PPF is generally included in the products Is. yes

20:44 Sukanya Samridhi is available nowadays for female Girl child is for girl children. And the alternative there is mutual funds. Yes. So if a person buys these three products Have to choose from. Now see, every product has its own nature happens, has characteristics and There are returns. So which product would you give to which person? I would say that he should take any of these three From? And why should it be taken? Sir 15 years whatever They have lockins, after that these three What do you see in the returns of What value differences can there be? Look, I will speak only under one condition Be it PPF or Sukanya Samriddhi Only those people should take it who are guaranteed Returns are needed. and i am specifically saying guaranteed Returns. They know that I will get 5 taka or getting six or getting seven Yes but it is guaranteed. the government of

21:29 None of this can happen in India. Weather than him Will he achieve his goal or not? It is a secondary matter, they are thinking about it but they It should look like it is guaranteed by the government I will go into this only then will I tell them otherwise it's actually a very suboptimal choice ok for The simple fact that even if I give this example I tell you many times that from Mumbai to Delhi have to go We Right, which car will you go in first? I ask you I and what speed you want to drive Suppose you are a car fan you love driving which car you will pick up from mumbai to Delhi Delhi and at what speed you will Driving? I just want honest answer From. yes i will pick up an suv near me If I have a Fortuner then I will prefer that Because that's a car which I love. right and maybe i'll go at nnnnn n n n n n increase speed because road if it has become good then let's say in a range of R 80 to 100 at 100 dot km

22:15 At kilometer. Why not Maruti 800 and whatever Santro. Maruti 800 will deliver very late. It will deliver late. and I don't know between I mean nothing against the band but maybe What if it breaks down? Mesten 1600 km. the journey is right There may be chances. so you have given very logical answer that which Fortuner according to the journey duration is a right vehicle suv is a right vehicle And why not 40-50 km. Speed Why 100 speed? Look, obviously it will take 40-50 times double. It will take place. Right? I get it on a timely basis I have to reach there and my car has that capacity that she can walk at 80. It can work. But don't you think 40-50 is safe and 100 It is risky. It is absolutely 100% risky. Then But we have control over the car, that much I have driven the car. And there is more confidence, even on the road There is confidence. Confidence on the environment

23:00 Plus the seat belt is built in. So same example PPF and Sukanya You are putting in prosperity for 15 years yes. Sukanya Samriddhi Yojana for 18 years had been. O! You will go there in Maruti 800. O! So obviously you cannot reach the distance You will get it or you will get it again. It will take a lot of time. If you reach there then you will get foreign education You can't even dream of it. with that money Foreign education is not possible. If your the kid is talented Then you can't say sorry to him. I did not plan properly. I am safe Wanted to keep it. Right? So think logically about what is the purpose Is? What is the goal, what is the duration? Right? That Time Turning 40 Is Actually Risky For Long term journey. We So if inflation does not come 12-13% today then you will get We are doing well in reducing the inflation of cost of education 7 8 9% from University Fixed income instruments are not what you need we give

23:45 Then you will never accomplish your goal you will find I have always been saying that you are talking about PPF. Let me give you an example that ₹1 lakh Suppose you have been investing for 28 years since PF 96 Started it and it is giving a real example I invested ₹1 lakh in PPF after 28 years You deposited 28 lakhs We Today the value of PPF has become ₹ 1 crore Ok And people's chests would expand immediately. Is. Look at my PPF balance of Rs 1 crore Is. Right? I say sir if you give ₹1 Lakh that day any one dissent from tax Savings should have been invested in ELSS fund Tax saving fund also gives you ₹1.5 lakh Would have got exemption under section 50C Was. You would have invested that amount of 28 lakhs today The value has become ₹ 13.5 crores. Offcosh ₹1 Crore vs ₹13.5 Crore. Wow. Now tell me what is risky?

24:31 If it was around 1 crore, it would have been 1.5 crore I would still not have said that for 50 lakhs Why are you taking so much risk? it is safe here Is. Sir where is one crore and where is 13.5 crore because you travel the distance Time time. So if this guy was 3 years old instead of 15 years old Otherwise I would probably still have said that you are safe Go in. I don't know what happens after 3 years. No matter how bad the market gets in 15 years. Let me just give you one example. 2010 I started my ELSS fund in 2015. SIP 2020 Covid was a worst time. My 10 Year Worst Returns on March 24 Was 7% market bottom pe 7% my ELSS had a return of which was still equal to FD which was still equal to PPF and FD Yes Do you want to know what is the return today after 15 years because i have completed just 15 years into that this thing Ok

25:16 19% compounded for the last 15 years Boss means you made 12% more per year which is huge for 15 years it's very Big it's very big big 99% of the people understand this thing. I did not come, we would have come That is why they are not able to create wealth. So you need to understand that and that is Where Financial Literacy Comes. Right? And that is where the power of compounding lies Comes. which very few people in the world Are intuitively capable to understand Compounding. So now I have this big picture in my empty life. have understood it That's what compounding and Charlie Mang says Take a simple idea and take it seriously. Compounding is a simple idea and I too It is very seriously. and today after 15 Years Sanjay ji I can see the power of this in My Portfolio. True

26:01 I am an investor tomorrow, which I will be today 3 years ago 2 years ago We Sir I went to Belgium, there was an investor did an awareness program So after 3 years or 2 years that investor will return tomorrow They connected with me automatically from their front When I got a call, I asked him, Sir, you had come to Belgium I remember I met you and I told you yes so I said that I am from Belgium at that time I made a presentation about what I did I had given a presentation and I attend every seminar I show you my portfolio because that's the best way to explain what you said Tell me what you did and what is the point in giving knowledge need it you are right proof has been done there is proof So at that time I showed Sir my Portfolio value was 20cr, 2cr today year ago When I go to Belgium September 2022 A matter of So now September is coming so it will be 3 years will go Yesterday when I sat with that investor I was showing her you would be surprised

26:48 Value sold 57 CR wow This is compounding and 3 years without you putting any effort without i putting any effort which i SIP is going, it is going, I have also said Lamsam did not apply anything And if that game happens then you are 3 years old before me You should ask me that Gajendra ji is 3 years old. What will happen after? I would have said 57 you say maybe it will be 30 maybe it will be 32 Will go. Exactly and let me tell you one thing sir 2014 July August So I started my journey in 2010 ₹10000 SIP I hit the first ₹1 crore after four Years. When August Modiji came in July 2014 Then the portfolio crossed Rs 1 crore. I Was like super happy. Became a millionaire. yes become a millionaire 1 crore you know No, you are not a dollar millionaire but you are normal Indian Millionaire Normal Indian millionaires have become 1 crore more there was a good amount

27:34 But if you ask him that after 10 years where do you see this figure I would not have said that in July 2024 and now It's been 11 years since One vs 57 today We You can't anticipate yourself I can't anticipate myself Now let me ask you one more question. I will come just now. M 45 I just told you the figure of 57 We 13 years later when I became 68 let's first 3 Let's talk about it after a year. 50 45 5 years old Let's talk. We A compound would be a doubling. There will be a doubling. There will be a doubling without you putting anyone else money. Yes. And I want to increase my return to 15% in my portfolio I expect of. I'm saying 14. Meaning doubling in five Years. Yes Same 15% for five years. Although I would tell investors to expect 12% Am. Because you and me are professionals, Experts. We have history. V Understand the risks.

28:19 So Sanjay ji, I am planning to invest Rs 40 lakh in SIP. Plus I am doing this. 5 years later this The figure will reach Rs 150 crore. Definitely. Because the double of 57 is yours It has to happen. So it has to be And the SIP you are doing will be done. He will also join. When I first went with a goal of 100 It was worth crores on his 50th birthday. I have life I first thought whether it will be 100 or not Will be. We And today 150 are becoming normal. This is a normal conversation. The butt games don't stop here anymore. Let's go to the 50th It has become 100 and my wish is also above that It is not that it will be 200 or 500, naturally will be. Hmm. but i just want to ask you one thing If you live till 60, you continue your work, You continue to do your step up SIP of 10%. You are increasing your SIP by 10% every year. can you guess what would be the figure at 60th Birthday? You are also doing a 10% step up which is 30% yes Wow. that would be meaningful to me too

29:05 I have to do mathematics. For once it will B. It will be. I think you would be sitting on not less than ₹7800 crores. You're Bang Right ₹880 Cr. Wow. On his 160th birthday. 880 crores. We will have the biggest party that day From you. Absolutely sir. And I don't even have a single top up in it I did not do it separately. While I'm very big I am going to top up. which top is it There is definitely a 20% one. And in that top up that you do, you Make a killing out of it. True, true. Always remember one thing that is money The most money at the worst time You will put that first in the return, right? will come. We Later, the rest of the returns will also come because they You bought it right at the bottom. Correct. So you get such opportunities two or three times a year. See you in 10 years. Hmm 20 25% Fall That's The Time I'm Going To Go Super Aggressive And that is my message to all our viewers Treat Bear Markets as a Sell

29:52 Joe Goodman as a Good Friend at the Mall There's a sale on, run away And buy and see, you are not a single stock you are buying you are buying the economy So what is the risk to you and you have asked a question Asked if people do FD and they feel it is safe Let me tell you sir today if I have ₹5 I might have crores in any one bank Even if it is a public sector bank I won't put my money in that safe guess not Can you imagine if I have 5 crores in a bank I will not put it. my i am very happy That my money is in 500 Indian companies. And I am the owners of the companies. Right? If this 500 company becomes zero then I will become zero I will be done. Otherwise the country itself will become zero. So it's over then, right? then real estate We don't have any value. Good If you have gold then who will you sell it to? Who will buy To you? It will become illiquid. Ilic means nothing Is. so and the beauty of this i can Control anywhere in the world. We

30:37 So if you have faith in the future of your Country We Then to my mind, better investment than this Not there. Not an investment tool. Look, now 361 companies have made Rs 1,000 crore Wealthiest A list of people has been prepared. People can go and check out on the website. You just look at the names of 1000 people. 100% of them are investment entrepreneurs. We No one is doctor, no one is sports There is no person, any music musician No, he is not a scientist, not an actor Is. All of them are entrepreneurs. So those who create the most wealth in the world Only they can make it. This is called that are the top 100 globally 75% of them are entrepreneurs. And around 20% are investors. And the remaining 3-4% is super He is an artist. Meaning that life is far ahead

31:23 have increased or is there something very big player who has not done any business Entered the Enterprise. Joe For Example is Michael Jordan but his Nike There is a tie up with. He has his own shoes. Correct. And in that you think you are a good entrepreneur To become one or to earn 1000 crores is much easier Then Becoming Michael Jordan. Hum Yes Michael Jordan's Probability Is Take Varys. Very low. Very very low rather. That means there would only be one Michael Jordan in 50 years Is. There is only one Sachin Tendulkar. You I am talking about the same level that is in 3% coming. Or there is only one Messi. Cricketers and footballers come out a lot Are. But now this list of 1000 crores has come. There are 1000 people, you can become that. And There is no one so difficult among a thousand people as much as it takes to be a Michael Jordan. Infact this is an easier route. So what did you tell me? you did very well Told the point. 75% of them are Entrepreneurs. So today, what these many people say to me 30 lakh SIP or I don't take pride in that

32:09 I am doing a SIP of Rs 30 lakh. Its result will come after 20 years. that day I will feel proud that I earned Rs 30 lakh Have put it. I just want to give what is the The idea of this show. the idea of this show is Not that everyone has to do SIP of Rs 30 lakh. The idea of this show is not. ₹100 for everyone Have to make crores. You do SIP of ₹3000. Exactly the Idea This is how I started my SIP of ₹10,000 I did it uninterruptedly for 15 years today has done. We Sanjay ji, I did not add ₹1 to that SIP. ₹1 not deleted, not topped up, Never taken it out. that was my first SIP. I wanted to leave it alone. you know why? because that would serve me as a Mirror of my life's SIP of Rs 5,000 i.e. Took five and two funds. I have started a SIP of Rs 10,000 So far ₹18 lakh have been deposited. In 15 years ₹1,20,000 * 15 18 Lakh

32:54 18 Lakhs Today its value has become 87 lakhs. Beautiful Wow one fund has given Rs 18.91. a fund has given 20 21.2. Averages 199% Returns, ups and downs, all are there in it. No, I did not pay ₹1 tax to the government. It is given in it. Right? Meaning the tax money was also compounded It is happening. That, too, is getting compounded. It will only be felt when you withdraw it will you do it. And those people do not understand that whatever tax you have Its compounding has not been paid in 15 years How much is it? You make FD every year to the government to pay tax to You have to pay even if you draw down that money do or don't do if you don't do it then it will be complete Compounding is taking place So I just want to tell you that the Started SIP of Rs. 10,000 and today it is Rs. 1 crore if it is being made then today you are making it worth 40 lakhs You are doing SIP, what about after 20 years the result will be Few And even at 12% it will become 400 crores so that means it is what is going to be

33:40 Substitutions 12% is a fabulous return I don't know why people are so funny today that even I 15 18 20 people forget that brother FD I'm getting six, here I'm getting 12 Buddy. It is double. It is doubling. And that's also for such a long duration. Really a long duration. So That's Where the Loners and Owners Game Is Less. Yes. I as I said I don't me when I I put the money, it is under my control. We Right? If I have given a loan to someone then I don't have control. We When will he give it, when will he not give it. We And Remember one more thing while taking loan. however much at that rate, no matter how much it is above 7-8% If you earn profit then you will have to pay only seven or eight rupees. Going to do. We Who is going to say such a thing? Good year for me There has been a good profit. Come on, I will give you 12 I'll give you the loan but you won't do me a favor The one. He's only going to give you eight. seven only

34:25 He is the giver. But when you become owners of these companies. So I always give an example. Suppose People come and make FD in HDFC Bank. We do it in SBI, we do it in Axis. I I feel very happy. I am all those FDs I call you an investor, you make me very rich You are making it. I like that very much Is. So, how does he say that? He says you have come You give me FD at 7-8%. I'm your money what should I do? I will forward him to work I apply it. I give it to someone else at 11%. I give home loan at 9%. Personal Loan 15% I will pay you. Credit card pays 36% Am. It's your money. I am putting your money to work. The delta that is coming is in between My margin is coming from the companies I am investing in I own 18% 20% in the last 20 years It has been given after compounding. so keep doing it FD. Don't make me invest in mutual funds. It won't make any difference to me. You may want FD do it. You are making me rich. these people

35:11 I don't understand it. So be an owner. Don't be a loner. You Can Never Create Wealth Out of Loaning money. Sir, what you said about the loaner owner FD comes back especially now I have been abused. We And especially since the influencers industry People have come in. FD is useless. FD So it should not happen. Conventionally a lot It was a big instrument. Gives comfort to everyone Was. So is there actually any use case for FD Is there any money left or is there no use case for FD? This is a use case for FD. There is only one use case that If your goals are 6 months, 12 months, 1 year, There are goals for 2 years and 3 years. Short Term There are goals. Then don’t double down on equities. Then if you thought that I will get the money after 2 years I need it, I have to get my children married. of children You studied and invested in the equity market Gave. 20% crashed.

35:57 You cannot postpone your child's wedding You can. You can't tell this to your son. You go for studies next year. We The market has crashed 20%. Right? So For short term goals you should do FD. You That's what I told you, if you are from Borivali You came here in a car in fortune You cannot come at a speed of 80. Here you will get 20 speed and 25 speed. It will have to come in the short term. Right? So FDS has a short term purpose. Whether you do FDS or day funds In mutual funds. Why don't I personally do FD? If you come today then we can talk about it have been. So let me tell you one more thing. I Even if the goal is of 12 months in the short term It is six months. I will never do FD. Ok. There are two or three reasons. What is one in FD? One year FD So what if I need the money in 11 months So what should I do? Will have to break it. Well what if the money survives in 13 months Will I do it? not understanding.

36:44 I will apply it again for a month and that will You will not get the rate. You will not get anything. Now what would 12 people do? Are? Well, the 12 month FD has matured. Then it remains in the savings account. 4 The day I invest in Taka De Mutual Funds I can take out as much as I want. Rest of the money, whatever it is, work at that rate. have been. The money arrives in a day. First thing. Second thing you have Rs 5 crore per year Need it later. You have got any ex-serviceman in the bank Put. There is still 1% chance that the bank may default It can. We There is definitely a chance, sir. someone's guarantee Not even there. So I am taking a big risk. I have mine Put the money in debt mutual fund. there my Money is same ₹5 crore 50 good banks and I am going to a financial institution. Only ₹5 is going to each bank. We If it decreases. It reduces drastically. so when you are Putting Money in Any Guaranteed Return Investments where there is no upside.

37:31 don't put all my money in one place put in 100 true places. We Because your upside is limited anyway. Correct. But how diversified has safety become Yours. These people are unable to understand. So I'll put my money in the day fund where My 50 paisa 50 financial from good bank has gone to the institution. Two banks tomorrow Even if it sinks, I only lost ₹4. We The remaining 46 are banks It is protected. So this is in Dept. now when it comes to Equities If You Want to Buy Equities Create wealth when you trade 50 stocks Diversification if you keep a portfolio It happens. Then it will go up to 510 and end as well It will happen. But the remaining 40-45 companies Yes, that will give you 15% average. Butt if You want to create a lot of wealth, you have to Have a concentrate. I give you a very good Let me give you an example. This means to people It will blow your mind. US example Is. In 1970 this Monish Pebarai

38:20 Gave an example. Also in the US in 1970 Nifty has 50 companies. like your Nifty is 50 in India. So in 1970 Who all used to be included in Nifty 50? there Companies like IBM, Xerox, Cococola etc. There were General Motors and so on. and there was a company Walmar Which is the largest retail chain. There is a retail chain in the world. So suppose in Nifty 50 you have two-three options Have taken it. 50 Companies in India 22% So you can imagine that the rest of today's 50 years have passed since 1970. By 2025 it became 50-60 paise. everything else The companies became zero. Assume We Only 2% of yours is lying in Walmart. We Right? Today the CAGR of that portfolio is 14 1/2%

39:06 Only Walmar's Just 2% because of Walmar alone The CAGR of the holding you had Portfolio Total amount you invested His CGR is 14f% So let me break it down as per my understanding For. yes I deposited ₹100 Absolutely Out of that, ₹98 have become zero. It has become zero. There was an investment of ₹2 in Walmart. At Walmart. Today that ₹2 is 55 years old at 14% From Enum to Growth on Enum That means Walmart alone has given 40-50% discount on Enrollment Got growth from it. Precisely the Point God Right that is the power of concentration. Now let me give you another example. Walmart If you look at the Fortune 500 list Richest Person in the United States. Last Number one and number two and number top for 40 years Walmart's name comes in the top five. Who These are the sons of Walmart. Yes, family.

39:51 Right? They are not even connected to the business. He only has shares. Day to Day some on the management board No, there is a board seat but there is no work Is. There is no active role. They don't do they don't interfere in the business. His grandfather started the company but the whole It has been given to the professionals. those people do have been. Haven't sold a single share till date They. And that is why they are still the richest Ficus religiosa. Just by owning this thing. so if You can sit with a good thing, even if it is two company three company four companies are if you You sit down after doing your research, that alone will Create the Highest Amount of Wealth but we have me I am two we both are Chart holders are safe we have the knowledge, we can do it We don't have the time or the interest You will not have to read the balance sheet Warren Buffett will get hungry in a day 5th 8 10-10 Read the Balance Sheet Right

40:37 So he is fond of reading novels. Like we don't have that much time If there is no inclination then I am the next best what thing do i do? Choose a good manager. Give your hardon money. like prashant jain There are good fund managers. Nilesh Shah Etc. are the managers of their companies. their There is a track record of 25 years. It is his day to day work. It is his day to day work. He has a team. They have it connected. Well connected. I have experience. If he gives you 15 to 18% can you make it to meet my expectations Is. What more do I want? True. Even if I make 22% on my own, I will I will have to leave my job. It will have to be I will have to leave my job. and I Love this work. We So my first priority is to put my work before I should earn a lot. I should work hard on this which is mine This is first love. Whatever income this brings, I If I apply compounding from 15 to 18, it will double Compounding machine. So be an owner, not an owner, and if you want to

41:22 Create lots of wealth with a focus Portfolio. that's the only diversification Preserves Wealth. We Concentration creates wealth. Bill Gates is the only person who has become rich, Major There is stock. It is his. Take as many entrepreneurs as you can, Elon Musk has become rich from one company at a time. Right? Right? His name is among 75% rich people. Exactly. Now once you become rich right then it is up to you now you want to diversify So that it preserves your wealth. Right? But there is only one way to become rich. You Diversification will not make you ultra wealthy Can. You can become wealthy. Mutual You can earn 12-15% by compounding in funds All of us investors can become wealthy. But 1000 2000 crore, 5000 crore Networth Banana Hai Na It Has To Come From Single Source. We and that single source In most cases, most cases have

42:09 bean people's own company because you have the Highest Conv will have the highest shareholder and the highest Convic Today I am not investing all my money in a single stock I can put it because I am its owner. My There is no control. my conviction is that much that it is not there. Right? You are right. But I can invest it in my business. That is why everyone should reinvest their business I do it only. But there is one golden rule I follow for business advisors: I want to give it to business owners. You and I meet a lot of businessmen. All People say friend what are you 12 15% Are you investing in mutual funds? my business 20%, 25% of them come just like that. spoke Sir, how many years have you been running this business? then he says It has been there for 40-50 years. Every year I invest 25% I do earn it. So I said you are me I want to ask you just one question, when did you start? and what base did you start with? So if Suppose you started with 50 lakhs and then got 40 lakhs you might have taken it from somewhere years ago and if you If you compound 40% and 30% then today you will get

42:54 It should have been in thousands of crores. You don't even have Rs 10 crore. It is not even 10 crores. Then where did the 25% return come from? Let me tell you a funny story. Met a paints businessman. then say When I started the paint business So at that time I set up a factory, everything I did it, set up the distribution and my ₹1 It cost crores. Correct. Sanjay ji says if I take this 10 crore I would have put it in Asian Paints. Absolutely. So today I am here, struggling Am. But I still have 10 crores on Asian Paints. By that time ₹100, 150, 200 crores would have been made. 100% This is true. But still this thing happens Even after that I would not suggest this to anyone I will not do it. is the reason being karma come It is our job to do it. It's my work. Right? Whatever you earn by working, you can spend it somewhere else Also put it, it doesn't make any difference. Butt you You will just think that today I will earn all the money

43:40 I have I'm straight Asian why I Should I work hard? Uday Kotak ji also said the same thing She said that today's young generation, which Those people belong to ultra wealthy families Sat down after opening the empty family office. Yes, yes, this is a big problem. Isn't it? There is actually a problem. So that means You came back from studying Harv and what are you doing? You are just managing empty money. Sachin Jindal ji also said that my son I wanted to put the money somewhere. I refused him You did it first, earn it yourself exactly Look, take as many Bajaj family as you want Rahul Bajaj We Big families, GD build etc. you take it They all have struggled they all went to the shop Floor We He worked with the workers if yes then create it then they are created Right, you can never earn that kind of wealth by managing it today we will not be able to create so your first yours mine ours want 1000 I may even earn crores from mutual funds

44:25 If you have to do 12 hour meetings daily then just have to do it With that I became unlimited and with that I became wealthy. I can. I can generate income and save the income Then you have to buy a compounding machine. Sir, after seeing you or to some extent I After watching as much as you put in Maybe I invest his one 10. Everyone has their own income, brother. So people think that I will just put it I can't afford the money and I never mean it How do you make so much money? how 30 lakh should I put it? How can I deposit 3 lakhs or even 4 lakhs? But here the pain comes from active income. So Do you feel like it feels like People nowadays are relying more on Can I make money from the stock market? By trading with mutual funds by doing FAO I can do anything to make me active You don't have to work hard which is worth ₹10,000 was the beginning so if you double click a little

45:12 How did you grow from Rs. 10,000 to Rs. 30 lakh today? wherever whatever your number and in the meanwhile you have activated your How to grow your income along with it have done it. What were the sources? how were you Yours? Well in my life I have always been a Very average person. Ok? I was a multi-talented person in the I used to play sports also. I used to do everything. But he was average in everything. Anywhere I I am not a superstar. but somewhere I think that’s a good thing, too. If Even if you are a journalist, that is not bad. But when I started this profession my Then I felt so much in wealth management I knew that one day I would definitely succeed in this It would be because there was a passion, there was a belief And if you had to work harder But what happens Sanjay ji, most of the people I have seen in the cases of that example I give it to you everybody we are not actually

45:59 Playing to Our Potential We Even after being so well educated, we still we are playing very safe in our lives We And what you said is that I earned a little And then I applied it, now why should I work hard should I do it hmm? Even today I feel like I was in 2010 in 2015 I started the work. Even today I have the same There is enthusiasm to work. You won't believe what has happened over the past year Sanjay ji, I come to the office every Sunday. I and my brothers are coming to the office. This much There is a backlog of work. Today I can say with ease that you know I could retire. Why should I work so hard? But that emotion, that passion, that money You can't do this with . Right? Secondly If you put in 80% effort and this is a The Golden Rule I am saying and this I can see There are a lot of financial There are advisors. There are a lot of investors

46:45 No, just today two people came to my case, sir Two advisors came from Ambala and Panipat. Very nice people came and it was nice to meet them By holding a meeting. So he says sir we are from a small town I am in. We can manage our ₹300 crores have been. Oh wow So we are also earning good income. So we You are at the top in your city. So now We feel like our stomach is full. What should we do now? Where is the motivation from? When we watch your podcast, we Motivation comes that this A bigger EVM is needed. good work Yes, you are doing a good job. They are doing this. They also know that they do not want money. But they are still doing it. So say sir What drives you is hunger that you are doing that. So I said look You can see 80% of the rest of our world people we If you put in 80% effort you will get 80% results Will come. We But if you put in 85% effort then you will 100% results will come.

47:30 O! Meaning the delta is 20% over the next 5%. If you enter delta 90 then you will get 120% results Will come. And if you put 100 then straight away The result will be 200%. incrementally which you You are investing 5%, right? The delta that comes out of that No, it is amazing. But 95% of the people put in only 85% effort. I don't even go over it. We I have done only one thing to myself that you know Don’t stay in the comfort zone. you have to Get out of your comfort zone always. Even After 20 years sir yesterday I bought a Maruti car I saw a chart that came in Mint. Maruti 's market share was 48% 4 years ago. It was 4 years ago. Today it reached 40% Are. They are the market leaders. True right? Became compliant. I had become complacent. Not developing a new product. There is a company in the US that offers rentals by Herds

48:17 car. Avis is another car rental company. Seconds Yes. So one of their ads came out, We are number two we Try harder. We Right? So when you go to second, third, fifth, 10 If you are there then it would be your wish to give me the upper hand I have to go. When you're on top So it happens. So I tell this to my team as well. Can't afford to remain complacent. It is a biggest enemy. Nagesh Kukunoor Have you heard the name of the director? We Do you know the name of his production company? What is? No. SIC Ok. Its full form is stability is a curse. Good Let me give you an example of this. I I was just reading somewhere that Pepsi was the second largest brand after coke In US. Correct. And today it's not even in the top four. O! So by doing smaller brands like Doctor Pepper

49:04 A brand of paper that has been dislodged pepsi ok its sprite coke's it has become a separate category leader and why because people now correlate with pepsi I am unable to do it, I have lost even in Pepsi it's fish So what is their market share of Coke alone of which 19% is left and 9% of these is left So when you become compliant then Pepsi We also saw brands like Nokia U How They Have Been Disposed So Badly and Recently when I read this I was so shocked that a small doctor's paper is used to make a brand He came and collected whatever he had and went away and number two reached number three. Absolutely. so what happens is that when you are playing for the highest stakes We You can't afford to even be 1% compensated. We why when the Indian cricket team is in the World Cup Why prepare for it three years ago now? does it? We Because the World Cup is at stake.

49:51 We So everything is critical. True. So in business also if you have a level But you have to go to earn money which you are talking about Your maximum earning is your incremental will come from the input. The one hour learning you did I have invested an hour there It will come from. Highest Income You Can Make By Being Active You can. and for that you have to be a Life Long Learner. Charlie Manger says Everyday read as many books as you possible. Meet as many people grind hustle you. And You will get very good active income from that. And see, we have human capital. Human capital is limited in a way. As our income and age increases, Human capital keeps going down. Financial capital keeps going up. Right? I don't want to comment on a 20 year old boy. I can't do it. He works 15 hours and 18 hours

50:36 Can do. I don't have that much energy Is. There isn't as much brain processing anymore that I can do it. At the age of 20 You can do CFA. Very in 45 It becomes difficult. somebody tell me again I will not do it with that. I won’t be able to do it. Right? So that's incremental Is. So what is your golden fuzz at that time You should invest maximum active income. do good courses We Right, go and attend good seminars. Neither when I was doing MBA nor in Delhi I have done MBA and I take classes Very little attendance was I used to go to CIA conferences After paying ₹2000 as fee my professors would say My friend, you are a lonely man We Whoever does this, the rest of the class is running behind the numbers which are and great point My ranking was 118 out of 120. There were two people below you There were still two people down there, I was thinking the same thing.

51:21 I wonder how that can be. Mean Butt believe me what i did in my post Graduation I You Should Read Other Books. I Used to go out. I used to do real learning. Whatever I am today is because of real learning Because it has helped a lot. not the theoretical Learning that I did. We and unfortunately in our country we are Always Used Measured by Our Outer Score Card. What were your marks? those of yours Come. Nobody focuses on learning. Many people are certified in our industry goes for. I will make this certificate If I take it then it will look good on my resume. this right now This tweet came four days ago, Kunal Bahl's Snapdal's graduation degrees or Post graduation degree have lost it values it doesn't matter whether you are from im or not Wherever you are from it doesn't matter one thing you Always remember Sanjay ji, no matter what the outcome is degree or any degree you get free first will help with the job

52:06 We It Will Open the Door for the First Job We When you go from your first job to your second job The interview will ask you questions about your first job do does did We Nobody will ask you if you read from Harvey Is it or not it won't take you far if you're not Competent We So today when we hire people we They tell me what is your degree, I don't know It doesn't matter how hungry you are If you don't know anything I will teach you everything But do you have hunger or not? You are 15 Can you work for hours or not? attitude is there or not So, an employee came to me 4 years ago. I said sir I want to work with you I said okay, I told you how much should I make He told me sir that I want to earn ₹30 lakh in 4 years He said we will make your road map for ₹30 lakhs but I will get it done for you and I I will pay you that much but are you ready? we are not his Right? Out of 100, two or three men would be ready Are.

52:52 90% of people get in the comfort zone. 6:00 pm I have to go home. Look at life, all this is what we say there is no balance in life, nor is it in books it occurs. Right? steve jobs says that

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