How an investment of Rs 10000 grew to Rs.535 Crores - Real story
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.
Rs.10,000 to Rs.535 Crores
Mohammad Anwar Ahmed from small town Amalner 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.
Wipro has done various such bonuses and stock splits in its history of 1980-2014. Lets now see the different corporate actions and how the number of stocks would’ve grown.
After the year 2010, there were no more bonuses or stock splits. But with just that initial investment of Rs.10,000 (100 shares) you now would end up with 96,00,000 shares of the company because of all the stock splits and bonus shares. Current stock price of wipro is about Rs.557 per share.
Rs.557 × 96,00,000 = Rs.534,72,00,000 or about Rs.535 crores !!
That's extent to which stock market can give multi-fold returns, provided company background and results are studied properly and technical analysis strong decision making criteria, which helps in making huge profits in stock market.
I feel very lucky to to be into stock market for 10+ yrs and very passionate about it. Each time I read such motivational story, I feel very excited & optimistic.
Thanks for reading guys...Have a great day....Cheers !!
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