Wednesday, December 31, 2008
Wednesday, December 17, 2008
people laugh at me bcoz i'm different and i laugh at them bcoz dey all r bloody same
m passionate abt markets...reason u wan
Power of Equity - Unbelievable - but it has happened
Just imagine…
How much can you make in 26 years by just investing Rs.10,000 initially in any of financial instruments ?
Take a wild guess ???
Let us look at the real example…
If you have subscribed in 100 shares of ________ company with a face value of Rs. 100 in 1980…
In 1981 company declared 1:1 bonus = you have 200 shares
In 1985 company declared 1:1 bonus = you have 400 shares
In 1986 company split the share to Rs. 10 = you have 4,000 shares
In 1987 company declared 1:1 bonus = you have 8,000 shares
In 1989 company declared 1:1 bonus = you have 16,000 shares
In 1992 company declared 1:1 bonus = you have 32,000 shares
In 1995 company declared 1:1 bonus = you have 64,000 shares
In 1997 company declared 1:2 bonus = you have 1,92,000 shares
In 1999 company split the share to Rs. 2 = you have 9,60,000 shares
In 2004 company declared 1:2 bonus = you have 28,80,000 shares
In 2005 company declared 1:1 bonus = you have 57,60,000 shares
At the end of 2005…
You have 57,60,000 shares of the company
Any guess about the company ?
(Hint : Its an Indian company)
Any guess about the present valuation ?
The result of ‘Power of Compounding’
Your present valuation is about
Rs. 200 Cr.+ & The company is ‘WIPRO’
==============================
Other such examples…
CIPLA
Investment of Rs. 10,000 in 1979 will fetch Rs. 95 cr.+
INFOSYS
Investment of Rs. 10,000 in 1992 will fetch Rs. 1.5 cr.+
RANBAXY
Investment of Rs. 1000 in 1980 will fetch Rs. 1.9 cr.+
Make a note of it these are unbeliable but true
Trade what you see, not what you think
One who expects miracles in share market should leave it immediately.
Looking for guaranteed tips? Search Beauty or Health pages
Trading Stocks is simple mathematics 2+2= 4
But our greed makes it 5 and our panic makes it 3
If you must play, decide on three things at the start: the rules of the game, the stakes, and the quitting time…Chinese proverb
Do not stand in a place of danger trusting in miracles…Arabian Proverb
Don't run too far, you will have to return the same distance…D?iblical Proverb
Investing is needed to multiply your capital over the long term.
Trading is needed to earn short term profits & survive the markets. In this community we have a combination of both.
Guidelines for Investing :
1. Buy only those cos which u understand.
2. Buy cos having a strong moat.
3. Have a deep look at the management before u buy.
4. Have a look at the valuations.
Guidelines for Trading :
1.Whenever Market is High It Will Fall
2.Whenever Market is Low, If there is no external Factor, It Will rise
4.Don't make huge investments
5.Keep a strict trailing stop-loss always.
6.Don't listen to analysts on the television.