He gave examples that how Rs 100k PKR from 2001 could have value (or purchasing power) of only around 9 thousand PKR today.Then we looked at national savings. Rs 100k PKR could have grown 15 lakh PKR which is around 11.5% in 25 years, if we take the average rate every year. When he calculated real estate with 13% annual growth Rs 1 lakh PKR could have grown into 21.2 lakh PKR in 25 years. The Gold was more interesting . Its one tola was around 8k in 2001 Rs 100kPKR were equal to 12.5 tolas at that time. Today tola is around 465,000.It could be 58 lakh PKR today.
There is nothing funnier talking about investing and using thousands, millions, and lakhs, and God knows what tola is!
Like seriously, just use common percentages and numbers like the rest of the world does, probably the lack of understanding of how this all works comes from that!
Also, those numbers are meaningless unless you do an inflation adjustment or you compare this to a somewhat stable currency.
The idea that a 'lack of understanding' is expressed by the use of PKR and lakhs is very humorous for me to see.Like for reference, I used Pakistani market and a tola is a well known standard unit of gold used in south asian markets. If you prefer to see everything in terms of stable currency and inflation adjustment, that's fine but don't dismiss the entire idea as 'meaningless' just because it was not presented in your way.
If you had Rs 100,000 in 2001, where would you have invested it?
You have Bitcoin as an option when Bitcoin did not even exist in 2001, but I'll go for real estate here in our city, our city back then was only rural until it turned into a city in 2004, so if I have 2 hectares of land in my locality, that will cost millions of pesos.
Real estate is the best investment if your town just became a city because the national government will pour in infrastructure projects; you can also build apartments and make residual income in the process.
I will also invest in Bitcoin when it's created because it's an asset that will give me huge profit.
Agreed, it makes sense real estate could be a good opportunity especially when a city is developing and yeah bitcoin was not included in my original comparison (of 2001), because it didn't exist back in 2001 and I added it later when a few people asked about it (just for comparison).
I didn't know much about investment at that time but from what I found on the internet if some companies stocks could have been bought at that time the most profit could have been made from companies like Apple and NVIDIA, and the most profit would have been from Monster Beverage company. Although Bitcoin came later even then those who were able to buy Bitcoin around 2010 made a profit over these 25 years no other company's stock or anything else could have given that much profit. I don't mind not being able to invest in anything around 2001 but I will always regret not being able to invest in Bitcoin in 2010.
Yes no doubt their is a bitcoin regret in many people.Apple, NVIDIA, Monster beverages and even amazon are great examples, but none of them were more promising at the time as the return is evident today, but the risk was very real back then which is the tricky part in investing.
But the biggest surprise for me was mutual funds that had given a very high return in that period , including around 430% growth. So if we invested Rs 1lakh PKR and it grew 25%, it would almost become Rs 40 millions today . Offcourse these are the past records and cannot guaranteed the same progress in future but still it was huge. it was an interesting session and made me think what is my money doing while i m not using it?
If you had Rs 100,000 in 2001, where would you have invested in?
Boy, I did not know you were from Pakistan. What session did you attend?
BTW, before reading your post, I chose gold because I did not know mutual funds could give this much profit, although I was about to choose mutual funds as well because I knew they have made people a lot of money but I did not have any number in mind that is really big. I mean, gold only made 5.8 million, while mutual funds could have made 40 million, that's insane.
People made fortunes in this period but only those who had 1 lac in that era, even people earning 1 lac today are not the same as people earning 30k 5 years ago. Inflation has hit harder and the suffering is still the same. The salaries there are still the same, people don't have enough knowledge about investment and all that, but sessions like this can give everyone a great sense of investment.
So if you can please send me a link if it was live, or you can PM me here.
Unfortunately, there is no link because it was a physical session but their investment differences and trends were surprising. Financial literacy can really make a big difference.
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