How does compounding work | Ankur Warikoo Hindi Video | Power of compounding
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- čas přidán 15. 09. 2021
- How does compounding work in real life?
Is it the same graph that we see?
How is CAGR calculated?
Of so much that we have spoken about compounding, today we will see how it really works.
I will also show you how it accounts for market bulls and bears; and how those bulls and bears are used to calculate Compounded Annual Growth Rate (CAGR).
Link to the excel sheet - bit.ly/39aoyAd
Link to the notes for this video - bit.ly/3zfAOdv
smallcase All-Weather-Investing (what I recommend for all of you, if you are just started investing in stocks): link.smallcase.com/eBDwWqpgocb
Compounding is a game of patience. For the longest time, it would feel like nothing is working. And that is when things are really really working!
If you like this video, please share it with your friends so more people could be aware of how compounding works.
As always, you can always ask your questions in the comments section below :)
#compounding #wealthcreation #warikoo
Click here to subscribe to my CZcams channel: shorturl.at/bizNX
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Ankur Warikoo is an entrepreneur, an angel investor, a mentor and an active public speaker.
For the past 4 years, Warikoo has been actively sharing content on CZcams, LinkedIn, Instagram, Facebook and Twitter amassing a following of 3 Million+ people.
He posts 3 Hindi and English videos every week on his CZcams channel, where he talks about entrepreneurship, how to grow in life, personal finance and failure.
Warikoo started his entrepreneurial journey in 2008. His most recent startup is nearbuy.com where he was the founder and CEO from 2015 until 2019.
Prior to that, Ankur started Groupon’s India business in 2011 and acted as the Country CEO from 2011-15, and Head of Groupon APAC from 2013-15.
An alumnus of the Indian School of Business, Ankur is an active Angel investor and mentor to several startups.
Ankur has been part of Fortune Magazine’s 40 under 40 List for India, LinkedIn India’s PowerProfiles List, LinkedIn India’s Spotlight List and India’s Top Executives under 40 list.
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Sir Excel sheets is Missing
sir I am currently 18 years old can you tell where and how I can invest my money. I am young and I can take any risk
Hello,
Question about compounding please
It means that you are reinvesting interest . However how does it apply to stocks? You are not selling it and reinvesting it..
Can you please advise?
@warikoo
Hello Sir.. Thanks for answering this application related question.
Also please share the calculator file again as it is not opening in excel on our laptop. We want to analyze the calculations.
Thanx u
For giving great knowledge for free
I watch other CZcams channel they always say hamara paid version le lo
If Compounding is the 8th wonder, Patience is the 9th wonder.
Absolutely correct
Today first time I come to know this , Paitence Is the 9th Wonder.
perfect comment
Baba nilesh mandal na aaj world ko naya chiz bataya hai thxxx bro
Ohhhh man!!!! This is a mindblowing truth!!!!
I'm surprised how an 18 min long video passes so quickly when the knowledge inside is so well explained! Appreciate your efforts 🙏
Exactly!
Trueeee
Usually at 1.5x the speed
I didn't even realize it until I read this comment
18 nhi 17.09
Nobody has ever explained as better than this before about compounding! I feel thankful to you for such explicit explanation!!
I watch this video after reading "the compound effect". मुझे नहीं लगता कि इससे ज्यादा आसानी से कोई समझा सकता है। स्टॉक मार्केट में कंपाउंडिंग के लिए यह वीडियो बहुत बहुत बहुत usefull है।👍👍
The Indian education system must have the following subjects:
1. CPR / First aid training
2. Finances and taxes
3. Traffic rule education
4. Mental health and emotional intelligence
@@keyikumlen.zeliang6179 very true, mental health education should be mandatory. Social media needs to be a tool for empowerment, not harassment.
5. Sex Education ( I know it is very difficult but if a child know this from there elders than it is good otherwise in future he gets to know about this by some random sites (You know what I mean) and then all this Incidents happends in India/World due to Poor Sex Education atleast Parents have to give there child Sex Education when appropriate time comes) Only My View
Be a better human and respect all this should be on priority
Health care through Good eating habits and regular exercise
That excitement on his face when he says "Using an excel sheet"😆
@P!nned ẞy Warikoo lol
Brilliant video showing the real picture of compounding interest rather than showing just rozy pic which is very important for new investors. thanks a lot for this video
Simple math of compound interest is blown everyone mind 😌😌😌😌
Best video on compounding!
No not at all.
loved this video ankur bhai. i was wondering what is CAGR all these years but today i got clarity through your video. and your communication skills and facial expressions make listening even more happy experience. please be the same always. may you have all the strength and blessings from almighty.
Very smart video for real ❤❤
Finally there is somebody who explains the old foggy people that it will reach to the same final spot despite the ups and downs💫💫✨
Finally someone got the real gist of compounding along with the risks it comes along. Thanks a lot Ankur. Really appreciate the effort. So many people on YT are just showing the growing curve line which isn't right for the beginners.
The other day I was trying to explain this exact thing to my family, but failed.. what an amazing way to explain! Great work!
family wont listen 😀😂
Family says "Yeah sab chod beta... FD me Paisa daal safe rahenge"
New to your channel sir i am 23 year and i have started investment. I have watched many other videos but this is the most simplest and detailed video i have ever watched till date.. i hope to watch more videos in the future cause i feel there are no other channel that can explain the concept power of compounding like you have done. New investors face difficulties in understanding but the way you have explained is so beautiful simple your body language your fluent words is simply mostly easily understood...
I saw multiple videos but no one could able to explain this so beautifully. Thanks !!!
This guy gets it. This guy is the savior for all young (and old) investors. So simple and elegant explanations.
Ankur, could you please teach how to teach? Lol.
Yes he explains really well
Or may be help us to learn how to learn 😇
Is this for sip or lumpsums?
He basically just did 1 10k lumpsum in January 2000 right ?
Or was it a lumpsum every year for 20 years?
Pls elaborate if you can
@@enscebose8466 It was a lumpsum
@@faizanlambe8275 just one single lumpsum right ?
I am an engineer and i never had exposure to Economics or financial study but after i started learning all this I feel like I see new horizons every day.
Thank you sir apne compounding ka matalab bhot ache se samjhaya ❤
U have shown us some reality.. Actually few days back i was doubtful of this compounding magic and the CAGR concept but now i got my answer... Thank u sir 🙂
Dude this guy and his love for Excel sheets 😂😂
🤣
⊂(◉‿◉)つ
I too love excel, and solid foundation through excel made my career brighter.
My favourite person on youtube.. simplifies everything and makes u understand each thing from the root of it🙌🏼🙌🏼🙌🏼👍👍👍👌👌👌
One of the best video for new investors, a must have video! Great work. Everyone talks about compounding but you sir, showed what we needed to see !
I am greatful to you that you explained in such a simple language for beginners like me
One of the best videos I have ever watched on the power of compounding.
Another classic example of Ankur Warikoo's brilliance! 🙏
U r absolutely right sir
@@theStockLover i wish to know about the stocks where to invest for a good cage
Didn't imagine a video on compounding would give me goosebumps. Amazing content 🔥
Thanks a lot sir...isse pehle sochta tha ki har month pe same stock ka price dena padhta h...lekin aj samja it's one time bought, holding and selling
You are making me love Microsoft Excel more and more!! Thank you for this video! It is a reality check that everyone needs.
I cannot thank you enough sir for the level of depth you touch with such an easily comprehensible language! I am in my early 20s and you have motivated me so much to not just save, but to invest as well! Your videos have so much to learn from, and thank you so much for helping us understand the nitty gritties of the paths that lead to financial freedom! You are truly a hero to the youth/people who needed a mentor to guide them. Thank you so much! ♥️
This guy can do magic with excel sheet.. now I'm hoping to have finance as a subject in early school days and he should be our teacher...
I'm 21 years old And the best and most sensible thing I have ever done is subscribing to his channel 😎😎😎😎😎😎😎😎😎stay blessed sir and bdw God has gifted u with beauty and brain 😎
perfect explaination of compunding with real data from 2000 - 2020. No one shows the real curve graph as you shown. Thanks.
Nice and practical explaining from you.
It would be great if you could make a part 2 of the video where you add the layer of inflation for the past 20 years and put across the probability of inflation adjusted returns.
I believe it would add more realistic scenario and help the new investors to understand the financial journey in much realistic way
Simplified learning never stops, Kudos and thanks much Ankur
Very simple video for anyone to make them understand how market works
This is the reality of investing. First true video I have seen in CZcams.🙏
Good of you to demonstrate this..... The "real life" compounding however happens when businesses reinvest profits for further capital growth - this aspect of the truth would have connected the last link.....how to simplify it and make it fun is your art 😀
Didn't expect this...I love compounding effect...but this is the best video I have seen on compounding... In real life...loved it...🙏
Is se pehele mene itana
Simplified video nahi dekhi thi .
Thank you so much sir.🙏
What a interesting thing about CAGR.. no one tell it in my life.. Very very knowledgeable.. hats off dear... It's ABCD of financial.. we can also educate our child's this things..
One of the most beautiful presentation I have ever seen
Thank You for explaining true way of compounding 🙏🏻🙏🏻
Have to learn Excel to plot the things as easily in it as you do.
बहुत अच्छी तरह से और सिधे शब्दोमे समझाया है. Thanks Sir. 🙏🙏🙏
Your online presence has made a compounding effect that is ,other so called financial experts have started giving free class . Thank you
This is how compounding works in every aspect of life: relationships, exercise, meditation, etc.
I see compounding in title, I automatically get excited for the Excel Sheet incoming. ;)
This is the best explanation of compounding in CZcams. Thanks Ankur Warikoo
Thanks bro for putting in so much effort in explaining the magic of compounding in such simple words 👏👏 If i can understand this then anybody can as I was not that bright during my school 🙏
Albert Einstein once described compound interest as the “eighth wonder of the world,” saying, “he who understands it, earns it; he who doesn't, pays for it.”
Yep 😁
He never said this....
@@makingsense7577 maybe when he said everyone didn't hear. Those who heard, they earned, those who did not, paid 😄
Albert never said this.
15:19 and as they say - "Zindagi me uttar chadav toh lagi rehti hai ". And finding the right exit moments will be tricky.
loved the way you explain every single topic about finance and compounding. way too beautiful thanks
absolutely amazed to watch this - so much energy in explaining thanks
Absolutely brilliant video I wish this could be visualized for other aspects of life like how skills compound over a period of time.
Relationships too
Understanding Money and what we want from it also becomes imperative to have good relationship with Money.
Great video and even though we did learn this simple concept in school we forget or don't understand the true power of compounding. 🙏🏻
As they say Compound interest is 8th wonder of the world; and we can build true wealth and achieve our goals and strive towards gaining financial freedom.
Your videos not only give good knowledge on financial topics but they're starting to make me fall in love with Excel.
Keep it up 👍
Wow..... respect sir....... excellent way to make someone understand........salute...
This was the best video from your channel. So simple yet so beautiful
Excellent! I was thinking about this for past week regarding compounding in stocks and how exactly it happens!
You just heard that Ankur! Hats off!
Great explanation!
Sure Sir, mujhe hua hai. Aap ke videos me har chijh transparent rahta hai.
We almost discussed this for an hour which u explained in mins.... Thanks for making this video
Very well explained ankur ji ,an excellent teacher for a reason 🤗💛
You're not just teaching finance but also excel. Kudos
Such a brilliant exhibition of compounding.. I am late into investing .. but will do it for sure.. thank you for your effort and time behind this... hats off !!
I will forever appreciate this channel with the help of your knowledge and lessons explanations idea I see forex/stock is the best investment anyone could get into. As it could make you rich in a blink of an eye
I will love to be your friend dear, as well as share some ideas to my husband about your earning
@@amandadarden5330 can share some tips that helped me,
1. Plan towards it
2. Be minimal on spending
3. Save money wisely towards retirement 4. Save to invest, it's a proven way to get richer.
@Ben point of correction it's not really ignorance but the high rate of scam really held good investors back
@Ben you're welcome, There are lots of investing options (real estate, stocks, gold silver, cryptocurrency, Airbnb, ETFS)
I have had no luck investing in cryptocurrency,I actually invest on my own but my profit aren't always as I expect, sometimes I just keep loosing money
Sir! Just an Amazing Way of Explaining Compounding. It's really easy to conceptually understand but really difficult to see it's magic in real-world. After watching today's video I finally understood how my long-term investments would finally pan-out in the future. Thank you for uploading such informative videos, please continue to do so in future! :)
I just loved it. and it reduced my anxiety over compounding. I can relate to life, What an impeccable 👌words to wounds...♡
Hi sir you are doing a gr8 job here in terms of financially educating people.. I always look forward to your excel calculations.. They are amazing..
Can you please make a video and excel sheet and explain whether we should go for mutual fund tax harvesting or stay invested for long time without tax harvesting?
This is the best video I have ever seen about investing .. with real life example.. ❤️
Thank You Sir, Very Help Full Video
Hats off sir the way you explain the compounding of growth rate amazing I have downloaded the video I have understand the compounding concept in better understanding
Thank you Ankur. This has been the most helpful video in my personal quest to understand finance. ❤
Stocks never gives compound interests over time, but absolute returns. We calculate it into SAGR/CAGR.
Brilliant. I was still wondering how compounding fits in stock market since the growth is not linear. But your demonstration made things crystal clear. Thank you. 😊
In the excel sheet example, the base amount is not changing its still 10000, so can we say it's compounding really?
@@frederickcheeranyes it's compounding or rather it's averaging out because the returns on every ups and downs are being compounded over the entire time period.
One of the best & simple learning on CI I ever heard. Thank you so much
You are such a genius man.....Gotta love how he explains everything
Maybe compounding is not a simple thing to understand. But you simplified it 🔥🔥🔥👍👍👍
Thank you brother..today you really gives the knowledge with specific simple way..
Many videos i watch but by your easy formats its really very easy to understand with deeply.
Thank you and god bless you
-chakaachak chirag
Hi Ankoor, I am a huge fan of yours ad respect the work you are doing. I am Tushar staying in Germany. Finally my doubt regarding Power of compounding in stock market is cleared. Till now I thought the power of compounding works only for FDs with fixed interest rates. Thank you again for educating us. I wish you all the best. I always wait for your new videos. Regards, Tushar
Sir this it most illustrative video on how compunding works that i have watched till now..thank you very much....great learning.
Please keep on guiding us Ankur 👍👍
*Despite the economic crisis, this is Still a good time to invest in stock and Crypto*
The rich spend less and invest more,
Investing in these economic crisis will be one of the best thing to do,
You're right I think stock and Crypto are the best to invest right now☺️
As stock's are good but crypto is better
I wanted to trade crypto but got confused by the fluctuation in price.,
This is the best video i have veer watched on youtube. Thank you Ankur sir.
You are Bachhan of Content making.
Wonderful explanation!
I was looking for content explaining compounding in stocks finally I got.
Dear Ankur, please make a video explaining (using Excel) how expense ratio in a Mutual Fund is calculated. Will be wonderful if you can use some actual example of any fund like you did in this video. I have been trying to get my head around the calculation of ER, but can't really get it. I am sure your explaining it will help many of us to take better financial decisions.
"Kyuki mujhe 84 Hindi me nahi aata" 😂😂
Chourasia
Shame
@NormaL EdiTZ indian hoke hindi mai counting nhi ata hai to shame hi to hai 😂😂
@@rahuljabdee I think he meant it as a joke
Best video on Compounding ❤️
My shortest 17 mins ever I didn't even know when the time passef such a beautiful content delivery for people from all walks of life 😘😘😘😘😘
So clear explanations! But myself a very slow learner and have to understand it properly. My HEARTFUL THANKS TO YOU again and again....
Please make a video on how to study abroad. As you're well experienced!
if you get admission in good college (Cambridge Stanford MIT Oxford Princeton Columbia Harvard waterloo Yale etc basically Ivy league colleges) only then it is worth it to study abroad else just get a job and start earning in india
@@yadneshkhode3091 how to get admission in ivy league colleges ?
Absolutely love the way you hate FD and love Excel Sheet ! LOL !
@P!nned ẞy Warikoo You Scammer !
धन्यवाद सर, पहली बार इतने अच्छे से समझा...
Excel sheet is very useful but it is an example of one-time investment.. How does it look if we invest month on month and I want to see how it grows.
Hey ankur. I don't think compounding applies to MF or stocks. Coz return growth on these are solely dependent on the unit or the shares you hold against its current value. It doesn't take into account what you have acquired so far. I could be wrong. Please help me clear this out.
Hi Abhishek
Compounding applies to MF or stocks as well. As Ankur was saying the price of the asset (MF or stock) grows due to various reason like company growth, economic growth & performance the value of the asset increases.
In simple terms you can think of it like the FD (which Ankur hates & clearly show the displeasure on this) where the principle grows in the first year & in the next year on the value that is increased your additional interest is applied. Similarly the MF or Share increases from the existing price & keeps growing.
That's what he's saying after the 10 min mark. Compounding only applies to instruments with fixed interest % applied to the whole amount. Growth in stocks comes from growth in the company or the economy.
Yeah I have had similar doubts. Price of my share increases by a certain amount and that would be my absolute return. How is it getting reinvested for it to compound?
@@TiMon-Experience Not really, if you watch after the 10 min mark, he clearly says that it can go down as well. We simplify it to explain the concept of growth but it's not like anyone is giving a fixed interest % each year. It's only looking back and annualising the returns that it looks like "compounding".
Everything explained in video , watch it again.
Instead of nifty consider your stock or mutual fund as example.
Einstein said - "Compounding is the 8th wonder" . Ab vo Albert tha iski koi jimedari na lera me 😂
Thank you so much sir 😊🎉 perfect video with your beautiful smile ❤
its helped me to understand the magic of compounding
thank you a lot ❤🙏
TIME FOR EXCEL SHEETS LOVERS..again :)
Kyun ki mujhe 84 hindi me nahi aati 😊
Kya likha hai ye?? 🤔🤔🤔🤯🤯🤯
It was a very simplified explaination for a real life compouding growth. Thank you sir for this amazing video. I believe this is video is for lumpsum 10000. I request you to explain the same with sip or form an Excel spreadsheet for the sip CAGR in the same manner 🙏.
Thank you Sir
thank you so much,all confusion gone after watching this video
I'm not gonna lie this answered most of my doubts I had about compounding I'll subscribe