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Microcap Millionaires: The Journey to a Hundred - Views on News from Equitymaster
Microcap Millionaires
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Microcap Millionaires: The Journey to a Hundred
Aug 5, 2016

The last fortnight marked an interesting event in the life of Microcap Millionaires (MCM) - we crossed the 100% return mark for the first time.

Allow me to explain.

As you already know, we maintain a notional corpus in MCM. As part of this, we started with a notional capital of Rs 1.5 million at the time of the inception of the service in February 2014. From then onwards, we did with this capital exactly what we asked subscribers to do in each of our reports since then.

Since we asked subscribers to pre-decide the amount of capital they would like to set aside to invest as per the services' recommendations, we reckoned this was the best way to keep track of the results of all our recommendations.

This Rs 1.5 million that we started with touched the Rs 3 million mark during the last few days (as I write to you, it stands a tad lower at Rs 2.99 million). Essentially, money invested as per the MCM way has doubled over the course of the two and a half years since we started this service.

This is what this journey has looked like, and its comparison with the BSE Sensex over the same period:


As I look back at this journey, it gives me a great sense of satisfaction. This, I say, for two reasons.

One is because as we cross this 100% mark, we are firmly in place to meet the most important goal of this service: To outperform the returns delivered by the BSE Sensex over a 3 to 5 year period. That's because in contrast to this service's returns, the BSE Sensex has been able to deliver just about 35% returns. So we stand at almost triple the returns from the general stock market, a great outperformance by any measure.

And two, is because I stand vindicated. I began this service with the strongest conviction that Benjamin Graham's principles - all but forgotten in today's frenzied stock markets - remain a force to reckon with. Their potency hasn't declined the slightest bit since their formulation 40 years back. They still have the power to deliver above average returns to anyone who has the patience to understand and follow them. Armed with this conviction and the amazing results of my back testing these principles in the Indian market, I built this service around them.

My hearty thanks goes out to all those subscribers who have had the faith to be on this journey with me since the start.

For those of who have joined later, do remember that while your returns will obviously not be the same as those since inception, the goal of this service is equally applicable to anyone who joins this service at any time: To outperform the benchmark over any given longer term period of 3 to 5 years.

Stay on this journey long enough and I have full confidence that your faith will be amply rewarded, just as it has in the past.

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Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

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