The Great Indian Multibagger Story .... Rs. 10,000 to 369,00,00,000

Discussion in 'Must-Read Interviews, Articles & News Items' started by RAMA MURTHY SASTRY CHALLA, Oct 8, 2015.

  1. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Multibagger of Long Term Investing

    Source :https://www.stableinvestor.com/2012/12/multibagger-of-long-term-investing.html
    [​IMG]

    Wouldn’t you be shocked if we told you that someone has turned Rs 10,000 into Rs 3,69,00,00,000 (Rs 369 Crores) in 32 years?. And that too by doing nothing in stock markets!! We bet you would be... :)

    Your next question would definitely be – Who has done it?
    Our answer is that we don’t know. But we are pretty sure that promoters of company would be one of them. They would have held shares for 32 years and made a killing. By the way, turning Rs 10K to Rs 369 Cr is same as growing your money 49% year on year for 32 consecutive years. Even great Warren Buffett managed a ‘paltry’ 25%... So even if we told you earlier that you cannot become Warren Buffett, here we have data, which suggests that you actually can!!
    (In comparison, banks pay 8% per year on deposits)

    So now you’ll ask – How has it been done?
    Before we answer this question, we would caution you that data given below has been collected from various sources and may or may not be correct. So, take it with a pinch of salt.
    The company is WIPRO. Suppose you invested Rs 10,000 in its shares in 1980. You would have got 100 shares @ Rs 100 each. Now shares of Wipro have gone through multiple splits & bonuses. So we adjust them as and when splits & bonuses happened.

    1980 – Bought 100 shares @ Rs 100
    1981 – 1:1 Bonus = 200 shares
    1985 – 1:1 Bonus = 400 shares
    1986 - Stock Split to Rs.10 face value = 4000 shares
    1987 - 1:1 Bonus = 8000 shares
    1989 - 1:1 Bonus = 16,000 shares
    1992 – 1:1 Bonus = 32,000 shares
    1995 – 1:1 Bonus = 64,000 shares
    1997 – 2:1 Bonus = 1,92,000 shares
    1999 - Stock Split to Rs. 2 face value =9,60,000 shares
    2004 – 2:1 Bonus =28,80,000 shares
    2005 - 1:1 Bonus =57,60,000 shares
    2010 – 3:2 Bonus =96,00,000 shares
    Value of one Wipro share is around Rs.385.

    So as of today, your investment of Rs 10k is worth a staggering Rs.369 crores!!

    And we are not finished yet. If you know about benefits of dividends, you would realize that Wipro has been a regular dividend payer. Last year it paid Rs 6 per share as dividend. So you would have earned Rs.5,76,00,000 (Rs 5.76 Crores) last year alone as dividend income. Just imagine how much you could have made from dividends alone in last 32 years. :)

    This post is only for Information purpose
     
    Last edited: Oct 8, 2015
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  2. Kris

    Kris New Member

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    Dear Murthy Sir,
    Any such recommendation at current level?
    Regards
    Kris
     
  3. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Dear Kris,
    Ha ha ha ... You are asking about Direct " Minting Machine " ...... but we are not having that
    You are Kris you have supernatural powers, with that please search in 5000 listed companies ..

    ALL THE BEST
     
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