RupeeCase
Education . Risk Profile . 2 of 3
Same 12 lakh . Same emergency . Same crash
One of them sold at the bottom.
Two people. Each worth Rs 12 lakh. Same Rs 2 lakh bill lands the month the market is down 30 pct. The only difference is where the money comes from.
Held a buffer
10L equity
plus 2L cash
Pays bill fromcash
Equity through falluntouched
Equity once market is back to par
10.00L
No buffer
12L equity
zero cash
Pays bill fromequity
Sold at the trough2.00L
Equity once market is back to par
9.14L
Gone. Same money in, same crash, same recovery. The forced sale at the bottom is the whole gap.
85714