When I last reviewed Amitabh Bachchan’s stock portfolio in November 2011, I was pleasantly surprised to see that the movie legend had stepped away from the beaten path and chosen to invest in a few “new-age” stocks.
Perhaps, Amitabh Bachchan was hoping to garner a few quick multibaggers.
Sadly, the experiment has not turned out well.
Birla Pacific Medspa was a stock on which Amitabh Bachchan had put high hopes and bought 16,75,000 shares. It did appear to live up to that hope by spurting to an all-time high of Rs. 30 on the IPO opening day itself. However, thereafter, it has lost its way and even at the CMP of Rs. 2.15, nobody wants to touch it with a barge pole.
Another stock which caused Amitabh Bachchan deep disappointment is Fineotex Chemicals. After its IPO price of Rs. 72, Fineotex Chemicals soared to Rs. 353. When it started sliding, Amitabh Bachchan made the classic mistake of imagining that it would shoot up again and bought 3 lakh shares between Rs. 170 to Rs. 150 per share. Its’ present price is Rs. 46 and there is no hope for the stock in the near future.
However, the one stock that brought a gentle smile to Amitabh Bachchan’s lips is Neuland Labs. The legend bought 92,030 shares of Neuland Labs. At the CMP of Rs. 160, the investment has more than doubled (116% gain) in the past one year.
Amitabh Bachchan must be complimented for being a very sensible and conservative investor. As per the affidavit filed by Jaya Bachchan at the time of her nomination to the Rajya Sabha, Amitabh’s income is about Rs. 72 crores and his net worth is about Rs. 283 crores. He has judiciously invested these funds. His investment in stocks is about Rs. 67 crores while real estate takes up about Rs. 101 crores. Even the real estate investment is widely diversified. Apart from his residence at Prateesksha, Juhu, Mumbai, Amitabh has a number of other properties such as one in DLF Golf Links and even one in France. Amitabh is also a believer in Gold and Jewellry as an investment and has invested about Rs. 25 crores in that asset. The rest is given as loans to trusted parties on which hefty interest is earned.
Jaya Bachchan is also a savvy investor. Her net worth of Rs. 43 crores is invested upto Rs. 14 crores in Gold and Jewellry and upto Rs. 4.29 crores in stocks. The rest is in real estate, diversified amongst different top-end properties.
This really is a golden couple from whom one can learn how to invest in a sensible manner.