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Equity ~Life Changers or Life Maimers ?
This Thought was inspired by a Whatsapp Forward received this morning titled Power of Equity .It listed many Life Changing Wealth Creators that grew many fold from just Rs 10000 invested in each & carried a concluding Message in Capitals ” INVEST WISELY WITH LOTS OF PATIENCE “
This was the List & I’m assuming the Years & CAGR Maths is correct with Dividends not being considered :
- Eicher Motors-1992 => Rs 80 lakhs
- Asian Paints-1986 => Rs 90 lakhs
- HDFC -1990 => Rs One Crore
- Brittania – 1985 => Rs 1.06 crs
- MRF – 1985 => Rs 1.10 crs
- BOSCH -1985 => Rs 1.20 crs
- Amara Raja -1991 => Rs 1.25 crs
- Shree Cement -1990 => Rs 2.90 crs
- Infosys – 1993 => Rs 3 crs
- Dr Reddys -1986 => Rs 10 crs
- WIPRO -1981 => Rs 400 crs
Cannot Argue with this Message for I’ve seen three of my Scrips,in even relatively quick time inside five years of investment too becoming over 100 Baggers ~Matrix Labs( early Millenium & now delisted as sold to Mylan),Mercator(early Millenium) & WIPRO ( from 1997 to early 2001)
It is rare for most investors to live the Conviction & Temperament to hold for long & ride the Huge Life Changing Gains.Imagine if more than Rs 10000 had been invested in each of the above,especially WIPRO!
However my Thought is what about Wrong Convictions on the High Fliers that became Wealth Destroyers & Life Maimers !
Here are a few of them ,most yet listed & struggling to revive & how much worth would your Rs 10000 invested in each of them be now ….most are Horror Stories of the past decade or a little more…sure you can contribute more…My Horror Stories have been the Damania Group’s Damania Capital Markets to mention one.Bad Judgement Call that Cost!It was compulsory delisted in July 2004.
~Suzlon -2005=>Rs 842 & 2008=>Rs 348 ! => 92% to 97% wiped out after considering 10:2 Split in January 2008 when it reached an all time high of Rs 2300 before split.Current Price Rs 16.Promoter Tulsi Tanti is yet on board though Dilip Shanghvi of Sun Pharma Group has acquired a major stake in it @ Rs 18 in February 2015.Mandatory Open Offer at Rs 18 to other Shareholders in January 2016 met with no success.The Share Price had raced to Rs 30 from where it has halved & is below the Open Offer & Stake Price of Rs 18.Shareholders hold out Hope of Revival back to Glory Days in the years ahead under Dilip Shanghavi.So far it’s been a muted share price trading range in recent months.
~Unitech-2006 => Rs 505 => 95% wiped out after adjusting for 12:1 Bonus & 10:2 Split in June 2006 & 1:1 Bonus in Aug 2007.Reached a high of Rs 14800 in 2006 before Bonus & split .Current Price under Rs 6
~Kingfisher Airlines-2006/7 => 0 ! => 100% wiped out & scrip suspended for trading from 2012/2013 & restricted trading from June 2015 ~ reached a High of Rs 335 in 2007