Investing on financials or gaining more awareness & knowledge through specialization in specific subject, requires patience, commitment and it is an ongoing process. Investing on a continuous basis keeping the long term in mind is always important and this small post is a dedication on Women's day where we could start small like a 20-20 match during the Year 2020 and invest on an ongoing basis to reap the benefits in the long term.
Explained briefly through numbers on how multiplier, compounding effect works in simple terms - The illustrative examples are taken to show the unique number patterns that emerge as we look long term:)
In summary, the examples would show that Addition is like a SIP (Systematic Investment Plan), Multiplication is more like Compounding and Growth while Factorization is equivalent of Diversification
a) 2020 - Start small like a T20 match but don't lose focus on the long term goals of mastering a 5 day Test or Championship!
b) 2020 itself is a result of two perfect squares - 1764 (42 ^ 42) and 256 (16 ^ 16). Power of addition and multiplication
c) Now add 5 to 2020 (Equivalent of planning for the near term) - Resultant is 2025. 2025 is a perfect square (45*45) - Think of it as a multiplier effect in the medium term
d) Think longer and add 500 instead of 5 (100x) to 2020 - Resulting number is 2520 which is one of the unique numbers in Mathematics world. 2520 is the lowest four digit number which has factors from 1 to 10! Power of factorization and compounding in the long run explained. When you are chasing a long term vision, make it unique like 2520!
e) If you closely look at the above pattern 2520 is an anagram of 2025 which was the medium term outcome that we started with!
Happy Women's Day everyone!
Explained briefly through numbers on how multiplier, compounding effect works in simple terms - The illustrative examples are taken to show the unique number patterns that emerge as we look long term:)
In summary, the examples would show that Addition is like a SIP (Systematic Investment Plan), Multiplication is more like Compounding and Growth while Factorization is equivalent of Diversification
a) 2020 - Start small like a T20 match but don't lose focus on the long term goals of mastering a 5 day Test or Championship!
b) 2020 itself is a result of two perfect squares - 1764 (42 ^ 42) and 256 (16 ^ 16). Power of addition and multiplication
c) Now add 5 to 2020 (Equivalent of planning for the near term) - Resultant is 2025. 2025 is a perfect square (45*45) - Think of it as a multiplier effect in the medium term
d) Think longer and add 500 instead of 5 (100x) to 2020 - Resulting number is 2520 which is one of the unique numbers in Mathematics world. 2520 is the lowest four digit number which has factors from 1 to 10! Power of factorization and compounding in the long run explained. When you are chasing a long term vision, make it unique like 2520!
e) If you closely look at the above pattern 2520 is an anagram of 2025 which was the medium term outcome that we started with!
Happy Women's Day everyone!
Great one .. as usual Anand !
ReplyDeleteGreat one, As usual .. Anand
ReplyDelete