Let the one among you who is without sin be the first to cast a stone. Jesus Christ

28 Mar 2018

SHARE MARKET--What happens when you hold a stock forever?/see the magic.

 If I had the technology to send a message back in time, I would tell my father in 1980 to “Use Rs.10,000 to buy 100 shares of Wipro as an one-time investment and never sell it for the next 30-35 years.” If he had done that his investment would now be worth about Rs.535 crores. Yes, you read that right. Crores, not thousands or lakhs.

This is one of the common examples given when people come into investing in shares in India.
Lets just assume that you bought 100 shares of Wipro each at a face value of Rs.100 in the year 1980. Total investment: Rs.10,000. You don’t touch it at all, no profit booking or buying more shares. Occasionally companies provide benefits to its shareholders by way of corporate actions. They could provide bonus shares for shares that you hold, they could do a stock split where a high face value share would be broken down into smaller face value shares but number of shares increases proportionately, etc.They paid good dividend every year etc.
There have been numerous such companies that have given great returns to investors, like Reliance, Titan, Dr. Reddy Labs, etc. No one can predict which company would grow to such a huge levels before 30 years. Remember, for every Wipro like story, there are thousands of companies which has eroded investors wealth and become penny stocks. Investing in equities alone isn’t enough, investing in the right company at the right time is even more important.
Good luck-- I have in my portfolio in the following shares for minimum 10 years. genus paper and boards(RS.12/50), confidence petrolium india ltd( Rs.29/-),Jiyo ecoproducts(Rs.111/-)--interested persons try.

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