What the slice you did not own abroad was worth.
Rs 1000000. Thirty four years. A home market that goes nowhere, which is exactly what Japan handed its own investors.
| Same money. Same 34 years. | Ends at | Multiple |
|---|
| 100 pct home . the market that went flat | 1004698 | 1.00x |
| 70 pct home . 30 pct global equity | 6115279 | 6.12x |
| 100 pct global equity | 18039970 | 18.04x |
The middle row is the one to sit with. Seven tenths of that portfolio did nothing for 34 years and it still finished at 6.12x. The Rs 300000 sent abroad grew to 5411991, which is more than the Rs 700000 kept at home ever became. A 30 percent sleeve was the difference between 1.00x and 6.12x on a flat home market. Not because global equity is special. Because it was not the same bet.