Sunday, November 16, 2008

WHY NOT TO FEAR EVEN IF SENSEX DOES 6000?

WHERE DO YOU FIND SENSEX IN THE NEXT 3-4 YEARS TIMEFRAME? IF THE ANSWER IS NEAR 20000, BY CURRENT LEVELS OF 9000, THAT WILL BE GROWTH OF 122% (22% PER ANNUM CAGR) IN 4 YEARS ALSO. NOT BAD BY ANY STANDARDS! AND WHAT'S THE ANSWER FOR WHERE DO YOU FIND SENSEX IN NEXT 3-4 MONTHS? 12000? 8000? OR IS IT 6000? EVEN IF WE DO 6000, RISK IS ONLY 3000 POINTS BUT WHAT ABOUT REWARDS? THAT IS 11000 POINTS FROM HERE. SO IS IT RISKY? NOT REALLY!!! RISK COMES FROM NOT KNOWING WHAT YOU ARE DOING – WARREN BUFFET. BUT NOW YOU KNOW THE RISK, SO GO AHEAD AND BUY!

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