the story of wipro- a stock can change your life

wipro ipo happenend in 1970 at rs 100 per share. those who held that share through now have become millionaires . that Rs 100 share has become 5.5 crore of stock today.read the story
Maharashtra's Amalner's residents hold Rs 3000-crore worth shares of Wipro

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

 

When was Wipro’s Initial Public Offer (IPO)?

Wipro’s Initial Public Offering was in the year 1946. In October 2000, Wipro raised gross aggregate proceeds of approximately US$131 million in initial U.S. public offering of its American Depositary Shares (“ADSs”) on the New York Stock Exchange.

Source : Wipro

 

Go Bombay Boy. Sorry w4wealth but this funny. This article in Economic Times implies that Wipro's IPO happened in 1980.

https://articles.economictimes.indi...bonus-share-issue-wealth-creation-rival-wipro

I read this when we were discussing the thread on biggest multibagger in Indian history. I had written how Wipro had given worse returns than a FD in the last 5 years. Nothing personal against the company. It is still India's leading software company.To be frank I did not believe the article after reading it the first time. I really wondered how Wipro could have beaten Infosys in return in a similar time frame when Infosys has given more dividend and has generated far more revenue and profit than Wipro but in absence of alternative data I believed that post. Hence I was right that you should use your own judgement judiciously. The facts are always there.

 

@bholu whatever may be the time of ipo , those who invested in ipo became millionaires. so how does that matter.

 

C'mon, I am sure if I had put money in FD in 1946 by 1980 I would be millionaire. It is not a fair comparison at all.

 

So what's a fair comparison involving wipro?

 

Well I would say the last 2-5 yrs would be reasonable time frame. Also the the returns of its peers like Infosys, TCS, Tech Mahindra. I think that would be fair ?

 

But why just 3-5 years?

Why not say from its IPO (67 yrs) - which if the bonus/ splits info is correct, its a CAGR of ~23% and compare it with Berkshire ( simply to see what the Legendary Mr Buffet has achieved)? Berkshire marginally below 22% in 5 decades

Why not compare Wipro from 1980 vs Infosys from 1993? The articles being trivalised just because of use of word IPO erroneously ( can't keep blaming the junior journalist for missing out such crucial technical aspects) - if considered with that Wipro was sub-far in 1980 ( as i am told) only goes to make Wipro look better.. A whopping ~45 CAGR over 34-35 years

The oldtime Wipro holders don't really care for they sit on a tight pile maybe earning dividends which exceed the portfolios of some in here. Wipro it is that has made their lives. Call it luck, investing acumen or whatever ( for me its destiny) but that reality for them. And if the intent of @w4wealth was to convey that a stock can change one's life : then surely Wipro fits the bill in all aspects. But then that member needed to also ( as you say remain judicious) highlight that the probability of a stock breaking your life is higher.

 

But why Wipro alone? People got their daughters married, built homes, went into retirement with the likes of HLL, Reliance, Colgate or *insert other bluechip cos from last century*.

All I'm saying is it makes a good selling point. It's not like Wipro story is discovered today. It's been covered for over a decade. The fact that there's no difference between 1946 & 1970 is baffling. Given the long history, Wipro will have traded sub par (paidup ₹100) a lot of times. Doesn't change things. And the real money was made with the IT story.

The legendary investor isn't a retail investor.

What's the probability of a Wipro like story ending up in our lifetimes? Is it higher than India qualifying for the FIFA World Cup?

@darth I'll do what you've said - make your point and move on

Not posting with the intent of belittling any user. Discretion advised.

 

Be kind, give the originator of this thread the benefit of the doubt that his actual intent behind the post was to convey that " a stock can change one's life" ( just unfortunate that he highlights only the upside change not the downside change) and he used wipro only because its the most readily available story on the internet. Like you say its not a story discovered today.

Infact I wouldnt have bothered about this thread but for the bewildering posts that your intial post triggered.

So thats the context of my post ....

 

What diff does the insertion in here make? Important was the inclusion in our portfolio, like my father in law did - not just the three you mention but many more in the 70's and 80's

Like i said only if you are destined. My father in law with his enviable portfolio maynot even know we are in the midst of a horrible earning season. ( just kidding but balancesheets for have just one destination : the raddiwala)

 

Well I admit that Wipro has given good returns, though not sure exactly what is return (in percentage) given the confusion. Also as BB pointed out that there are several such stocks like HLL, RIL, ACC, Colgate which did really well. Forget these, in the last bull run we had many stocks rising as much as 300 -500% within a year. Imagine tripling your money in less than a year. So yes the difference one good stock can make to portfolio is always appreciated.

 

Indeed, but my post was a case of two investors (premji into his businesses) and Buffet ( into financial instruments and businesses)

And guess what... A new fact comes to light : our Premji has outperformed 'the name' in investing over 67 years.

Any junior journalist listening in? You can carry this post to further promote what the uneducated often impressionable retail investors want to hear.

 

Dear friend @darth can you throw some light on your father in laws portfolio and his stock picking strategy? asked out of curiosity and woud help all members.

 

once i came across one info, that if you had invested 10000 in wipro in 1991 it would have become 1.75 crore in 2015. so what i think is if an investor put money in in wipro in 1970 or 1980 or 1990 , whichever year he made huge returns.

 

There is always downside risk as @darth said in investing.
But maximum downside is 100% and maximum upside is infinite.