The Unluckiest Investor

Even the Unluckiest Investor Wins in India: The Power of Compounding

Investing in the stock market can be nerve-wracking, especially if you have a knack for picking the worst possible entry points. But what if you were the unluckiest investor ever—always investing at the peak of every major bull run, just before the market crashed by over 50%?

Let’s assume you did just that:

• You invested at the peak of the 1992 Harshad Mehta bull run before the crash.

• You invested at the peak of the 2000 dot-com bubble before the meltdown.

• You invested at the peak of the 2008 financial crisis before the market tanked.

You never invested before or after these peaks. You simply stayed invested, without touching your portfolio.

What Happened to Your Investments?

Despite investing at the worst possible times, your capital as of January 2025, measured by Sensex TRI (Total Return Index), has compounded as follows:

Investment at 1992 peak → Now generating ~10.5% CAGR

Investment at 2000 peak → Now generating ~12.5% CAGR

Investment at 2008 peak → Now generating ~9.9% CAGR

Even the unluckiest investor ever has averaged ~11% annual returns over time!

What Does This Prove?

• Time in the market beats timing the market – Even if you invest at the worst possible time, staying invested is what truly matters.

  
  

• India is a compounding machine – The structural growth of the Indian economy ensures that long-term investors benefit from wealth creation.

  
  

• Market crashes are temporary, growth is permanent – Each of these crashes wiped out billions, but the market always recovered and soared to new highs.

  
  

The Key Takeaway

If even the most unfortunate investor can make ~11% CAGR, imagine what a disciplined, long-term investor can achieve! The Indian growth story is unstoppable.

So the next time a market correction happens, don’t panic. Instead, recognize the opportunity, embrace the power of compounding, and remember: No one can stop this compounding machine called India