How I turned 1 Rupee into 17 Lakh Rupees in 2 Years?

How I turned 1 Rupee into 17 Lakh Rupees in 2 Years?

This post is about my favourite Stock – TANLA. If you are following us from last 2-3 years, you will already know TANLA is one of my favourite stocks. I have posted at least 20-30 times in the last few years about my investment in TANLA and how I’m handling it.

Before we get into the details, you should understand “How the Professional Investor Invests their money”.

Here is the simple Example:

• Consider a professional Investor has 5 Crore as his capital.
• A professional investor, who knows what he is doing will invest only in handful of stocks (say 5-10 max).
• Don’t confuse this with diversification, that’s only applicable for retail Investors who wants to reduce their risk. Rich investors will always have a concentrated portfolio.
• In this case, consider the professional investor is investing in maximum of 5 stocks at the same time. So capital for each investment is 1 Crore.
• Let’s say the professional investor identifies a stock and invests 1 Crore rupees in that stock. Consider, the stock is trading at 1,000 rupees. So he will be buying 10,000 shares
• Let’s say stock rallies by 10% after few days/weeks, which is his target price.
• In this case, stock will now be trading at 1,100 Rupees and his investment would have grown to 1.1 Crore
• Now the professional investor will sell the stocks worth 1 Crore rupees and pull his initial investment of 1 Crore rupees out.
• So in this case, he will sell 9091 shares and leave the remaining 909 stocks in their portfolio for lifetime.
• Since they pulled their capital out, they can use this 1 Crore rupees capital again to invest in another stock and repeat the same thing over and over and over.
• This will result in getting a risk free portfolio. This is How the Professional Investor Invests their money.

I followed the exact same approach when it comes to Investing in TANLA & I clearly explained it as well from the start to the end.

• I had invested a huge amount in TANLA at 27-30-and-33 price levels during 2018-2019. I have posted several updates about it in our MarketSecrets Telegram channel while investing.
• I don’t generally disclose the amount I’m trading or investing, so consider it is 1L Rupees. With average investment cost of 30 rupees, I got around 3330 shares.
• I also clearly explained how I’ll be handling this investment periodically. So when TANLA Hit 60 Rupees in the next few months, my 1 Lakh rupees investment had grown to 2 Lakh rupees.
• So, as per the plan, I pulled my initial Investment of 1 Lakh rupees out by selling the 1665 shares and left the remaining 1665 shares forever.
• So I don’t have any money invested in TANLA now and my investment cost here is nominal 1 rupee.
• During covid crash of March 2020, price of TANLA crashed to 40 rupees and bounced back strongly and went on to hit 1030. It is currently trading around 1000 price range and I’m still holding 1665 free shares without any risk.
• These shares are now worth 17 Lakh rupees and my investment is just nominal 1 rupee. Still I’m not going to sell my shares or book profits here.
• These are just free shares for me and I’ll continue to hold on to this forever. I have lot of similar stocks in my portfolio, which I’m holding for free – my initial investment is out, so there are just risk-free shares, even if the stock goes to 0.
• I follow the exact same approach when I invest in IPOs as well. If the IPO list at 10-20% above, I’ll sell the shares worth my initial investment and will forget the rest.

This is a great way to create a risk-free portfolio, which is only used by rich or professional Investors. In the long run, some of these companies will go worthless – to Zero. Some may remain an average performer. But 2-3 of these companies will go sky-high and that will be good enough to create tremendous and end-less wealth for you.

So, do you have a 0-risk or risk-free portfolio, if not – why? At the start, it will look very small or even silly. You may even ask yourself, what is the point of holding just 5 or 10 shares of a company even though it is risk free. but don’t let that stop you from building a risk-free portfolio. Once you see a healthy growth, you will be able to attract lot of wealth quickly. So start now.

For more details, checkout the video: