Invest for the
Future You Desire

Analysis of Different Investment Strategies (2000-2023)

If you invested everything in 2003 (Base Case): You would capture all of the bull runs but also feel the full brunt of 2008's crash. Overall, you would have done well by 2022, but with higher volatility.

If you used Strategy 1 (Buy the Dip): You would have achieved the highest total return by adding money on downturns—particularly in 2008. However, this requires both available capital and the willingness to invest when fear is highest.

If you used Strategy 2 (DCA): Your returns would be solid and less volatile than a lump-sum approach. While your final total might be a bit lower than Strategy 1, you would have avoided the stress of deciding when to invest extra cash.

Ultimately, the spreadsheet's data underscores the old investing wisdom:

• Consistent discipline (like DCA) protects you from emotional mistakes.
• Well-timed extra contributions (buying dips) can outperform but demand both skill and nerve.
• Large lump-sum investments do best if you have a long horizon and the market cooperates—yet you face the full risk of market crashes.

20-Year Market Performance Comparison (2000-2023)

This chart shows how a hypothetical $100 investment in three major markets—SENSEX (USD adjusted), the S&P 500, and the Nasdaq—would have grown over the displayed timeframe (early 2000s to around 2023). Each line starts at 100 on the left and moves through the 2008–2009 crisis (shaded in red), continuing to the end date.

By the final data point, the SENSEX (USD adjusted) (black line) rises to roughly $500, making it the top performer. The Nasdaq (green line) ends near $400, while the S&P 500 (red line) reaches about $300. In other words, the SENSEX has increased about fivefold, the Nasdaq about fourfold, and the S&P about threefold over this period.

1. Does a company have products and services that with sufficient market potential for it to increase sales for the coming years
   • See total addressable market
   • Estimate growth from estimated growth to corporate it into your model.
2. Does the management realise their niche and continue to have their product stand out and will it stay relevant with extra market exploitation.
   • See how the company allocates its profits to capital expenditures in a sustained manner.
3. How does the company spend on research and development and how does it reflect on the business. (eg. Nvidia, Apple)
   • (R&D/sales): How effective is the management at assigning capital expenditure for long sustainable growth.
   • Delta: (Profit period 2 – Profit period 1)/(R&D expenses 2 – R&D expenses period 1) This will tell us how every dollar spent on R&D roughly denotes to sales. The higher the figure the better.
   • However, the R&D figures need to be scrutinised to gauge how does the company spend its money.
4. How does the company market itself, how efficient are they at sales? (eg. Zomato)
   • Fisher's scuttlebutt technique of asking around, competition and customers is the best way to gauge this.
5. Profit Margins, how does a company increase its profit margin yo?
   • R&D/sales sure but if the company is reducing its expenses over the time to increase the profit margin it is as sustainable as the rest.
   • An investment in a low profit margin business should always be done with expectations that the margins will improve in the long term.
   • Margin/maintenance is a key metric to see by how much a business gets affected when the business tide turns, a good business will have less fluctuations during bad times compared to weaker counterparts.
6. How is the company maintaining labor relations?
   • Does the company pay above average wages to its employees?
   • Is the management to employee compensation ratio high?
   • How well does the company address grievances.