Magic of Long Term in
Equities/Shares
It is always advisable to have a Long term outlook for the investment .Long
term means at least to go for a year and
more .If you have a goal of say 10 , 20 30 years then nothing can give you
better return than equities with the tax benefit.
Speculation can only lead to making rich to your broker and
trying to make a huge profits with the short term trading
strategies might burnt you to loose everything you have. So avoid doing
speculation and understand the power of
long term strategies.
I will cite an example
of few stocks which had potentially made people millionaire and being
once a penny stock and later converted into one of the favorite stocks of the
investors. This has been study from the year 2000 to till date and see what the
difference they made with such a small amount of 1000 Rs
Time Frame and Amount Invested : Year 2000 to year 2013 and amount invested
in year 2000 is 1000/-
Company Name
|
Period High
|
Period Low
|
Change in Market Cap (%)
|
Highest value of the Investment
|
Net worth in Millions
|
Delta Corp.
|
141.65
|
0.05
|
7862.5
|
2820000
|
2.82
|
Unitech
|
546.80
|
0.23
|
7400
|
2377391
|
2.37
|
Kwality Dairy
|
228.3
|
0.1
|
7037.5
|
2283000
|
2.28
|
Praj Industries
|
273.45
|
0.2
|
1967.42
|
1352250
|
1.35
|
Anant Raj Industries
|
394.95
|
0.35
|
10891.67
|
1128428
|
1.13
|
Era Infra Engg.
|
243.3
|
0.3
|
9382.01
|
811000
|
0.81
|
TTK Prestige
|
3996
|
5.75
|
6253.3
|
694956
|
0.694
|
Kotak Mahindra Bank
|
717.78
|
2.6
|
3116.74
|
276069
|
0.276
|
Sintex Industries
|
307.5
|
2.08
|
993.32
|
147836
|
0.147
|
Rajesh Export
|
169.93
|
1.7
|
1827.69
|
100000
|
0.1
|
Hope no scheme in the world can give the above return in the
span of only 13 years and making a millionaire
with just a small investment of 1000/-
Understanding the value of money and investing a small
amount in the equities can definitely make you different from other and is the
only way to beat inflation in the long term .
An old saying “Patience pays ” is proving here and proving in the miraculous
number, so why to speculate? Just hold your money in equities and see it
growing with the time...
No comments:
Post a Comment
Atul Vijay has left a new comment on your post "Cairn India -An outlook of future":
09 Sep 1982, 23:58, Sangod (Rajasthan)