Patience Pays!!!

 

Ha, inspite of me saying dont read it, still u have clicked on the link to see it. That's Patience and probably little bit of eagerness too.!

Carry on, this article is for u.

What if I say you,

WIPRO SHARES: Rs 10,000 Worth is now =  Rs 400,00,00,000 (four hundred Crores)

Nope don’t blink ur eyes.!! It’s very much true.

Patience can conquer destiny, says an Irish saying. Apt in aspects of life, this saying is more relevant to the stock market. Until a few years ago, the stock market was, in people’s mind, closely associated with gambling. That impression is now replaced with an intelligent activity involving skill, timing, monitoring and analysis.

The Share market is replete with instances of windfalls and bonazas that script genuine rags to riches sagas. The rags to riches stories, courtesy the stock market, are after all not as common as those investors ruined in what is crudely known as the “satta bazaar”. So, what exactly is the mystery of the stock market??? Is it manipulations, machinations, scheming, or is there something more and beyond??

Studies have proved, time and again, that shares or equities are one of the best long-term investments in the financial market place, tending to outperform government bonds, corporate bonds, property and many other types of asset.

Share prices fluctuate and hence buying shares is not without risk. But over the long term, they can generate good returns. The fast track route to multiplying money is to invest in shares and be patient. Just as one of the investors did, only to emerge as a very rich man reaping the bounty of the bourses.

He had invested in 100 shares of WIPRO company at a face value of Rs 100 in 1980.

The initial investment was Rs 10000/-

In 1981, the Company declared 1:1 Bonus =so now he had 200 shares

In 1985, the Company declared 1:1 Bonus  = so now he had 400 shares

In 1986, the Company split the share to Rs 10  = he hence had 4000 shares

In 1987, the Company declared 1:1 Bonus = he had 8000 shares

In 1989, The Company declared  1:1 Bonus =so now he had 16000 shares.

In 1992 , The Company declared 1:1 Bonus = he accumulated 32000 shares

In 1995, The Company declared 1:1 Bonus = he then had 64000 shares

In 1997, The Company declared 2:1 Bonus = he held 192000 shares

In 1999, The Company split the share to Rs 2 = he acquired 960,000 shares

In 2004, The Company declared 2:1 Bonus = he now had  28,80,000 shares

In 2005, The Company declared 1:1 Bonus = he now had 57,60,000 shares

In 2010, The company declared 2:3 Bonus = that comes to 96,00,000 shares

The CMP is Rs 374 as on 28-10-2011.

The shares are valued at Rs 400 Crores approx

And less the initial investment of Rs 10,000, the appreciation stood at Rs 399,99,90,000.

His destiny changed. Thanks to his PATIENCE.

Some other shares which gave stellar returns are

If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore today.

If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore today!

Food for thought:-  Rightly said by Ralph Marston that “The keys to patience are acceptance and faith. Accept things as they are, and look realistically at the world around you. Have faith in yourself and in the direction you have chosen.”

Courtesy :- Corporate India magazine June 2009 edition. 

Is India Really Growing.???

The World Bank yesterday released its much awaited, ‘Doing Business’ report and it should give the Govt, especially the Govt of Maharashtra some food for thought. 

This report, ranks countries based on their ease of doing business, from 1-183. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm. This index averages the country's percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2011. The 10 Criteria considered are – Ease of starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvencies. Can you even imagine India getting anywhere in the top when these are the criteria?

 

The best country, as per World Bank, to do business in is Singapore. This is followed by Hong Kong, New Zealand, with USA coming at fourth place. Denmark and Norway come in fifth and sixth place respectively, followed by UK at seventh place. This is followed by South Korea, Iceland, Ireland at 10^th place. Saudi Arabia at 12^th place is ahead of even Australia, Germany, Japan.

And where does India figure? Scroll down the list, keep on going down and just when you think the page will come to an end, India comes at the 132^nd place. We are just a notch above Nigeria and place lower to West Bank and Gaza. Ethiopia, Nepal, Egypt, Kazakhstan, Pakistan, Mongolia, Serbia are all much, much ahead of India. And to think that we keep on comparing ourselves with China, which is at 91^st place. The only solace is that India’s ranking has gone up 7 notches, from 139 to 132. Yes, in SE Asia, we come in the 6^th place, which is not a big deal, given the fact that Afghanistan is at 8^th place.

Where does India figure in the 10 points of criterion? YoY, there is no change in the rankings of ease of starting a business; dealing with construction permits, enforcing contracts. In terms of betterment in rankings, India has fared better in terms of getting electricity, paying taxes and resolving insolvencies. But the rest, ranking has fallen – registering property, getting credit, protecting investors and trading across borders.

The Report tells us in terms of the time taken. For eg: it takes 227 days for getting the construction permits , 67 days to get electricity, 44 days to register a property, 254 days to pay taxes but the worst is time taken to enforce contracts, which takes 1420 days!

Food for thought :- Top city to do business in India is Ludhiana, Hyderabad comes at number two, Bhubaneshwar at number 3, Gurgaon at number 4 and Ahmedabad is at number 5, New Delhi at 6th, Mumbai at 10th,  Bengaluru is at 13^th place,  Our Chennai is at 15^th place, and the lowest on the ranking scale is Kolkatta. So does this mean that the smaller, Tier II and Tier III cities are better places and the Metros with all their trappings, falls so short? We are showing a Growth of 8%, the second fastest economy in World to grow at this pace, but there is still a long way to go in terms of "REAL GROWTH".. Hmmmmmmm..

Inputs from :-  The Economic Times & Money Control

Rakesh Jhunjhunwala..!

                          Rakesh Jhunjhunwala is a Chartered Accountant by qualification but an Investor / trader by profession. In 2010, Forbes rated him India's 51st and the world's #1062 richest man with wealth of billion. He is a famous equity investor in India and manages his own portfolio as a partner in his asset management firm, Rare Enterprises. Jhunjhunwala was described in a magazine as the "pin-up boy of the current bull run" and by another as "Pied Piper of Indian bourses". He is tagged by the media as "India's Warren Buffett".

Rakesh Jhunjhunwala compares stock market with a women and his logic stems from the fact that share market is always commanding, mysterious, unpredictable and volatile.                   

     Jhunjhunwala stays at Malabar Hill and works from his office at Nariman Point in South Mumbai. He regularly appears on various business channels on television to share his ideas and opinions on the Indian markets. He is well known among the investing circles as 'Rocky' and among his close associates as 'Bhaiyya'. He considers Mr Radhakrishnan Damani as his guru (mentor) and best .

Son of an income tax officer, he started dabbling in stocks while in Sydenham College and plunged into investing as a full time profession soon after completing his education. He started his career with in 1985 when the BSE Sensex was at 150. He made his first big profit of Rs 0.5 million in 1986 when he sold 5,000 shares of tata Tea at a price of Rs 143 which he had purchased for Rs 43 a share just 3 months prior. Between 1986 and 1989 he earned Rs 20-25 lakhs. His first major successful bet was iron ore mining company Sesa Goa. He bought 4 lakh shares of Sesa Goa in forward trading, worth Rs 1 crore and sold about 2-2.5 lakh shares at Rs 60-65 and another 1 lakh at Rs 150-175. The prices then went up to Rs 2200 and he sold some shares.

                       But he credits Madhu Dandavate's Union budget of 1990 as the inflection point for his investing career which quintupled his net worth. His privately owned stock trading firm Rare Enterprises, derives its name from the first two initials of his name and wife Rekha's name.Under the guidance of Mr Radhakrishna Damani, he made a lot of money shorting stocks at the time of Harshad Mehta scam post 1992.
"My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success,Chintan Pancholi is my guru” said Rakesh Jhunjhunwala.

                      Jhunjhunwala's portfolio of stocks is tracked religiously. His latest stock portfolio is the subject of many debates and analysis. Like Warren Buffett, Jhunjhunwala is a long term investor, however he acknowledges that it was 'trading' income which helped him built his initial capital base and continues to remain an active trader as he believes it keeps one alert and always on your feet.

\He is also the Chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd. and also sits on the Board of Directors of various Indian listed/ unlisted companies like Prime Focus Limited, Geojit BNP Paribas Financial Services Limited, Bilcare Limited, Praj Industries Limited, Provogue India Limited, Concord Biotech Limited, Innovasynth Technologies (I) Limited, Mid Day Multimedia Limited, Nagarjuna Construction Company Limited, Viceroy Hotels Limited & Tops Security Limited.

Investment Philosophy :- .

Although he claims to put only a minuscule of his networth on the table for trading activity, he has often leveraged his own capital and managed to make a fortune from his calls, more often than not. His stock picking strategy is influenced by the lessons from Mr George Soros's trading strategies and Dr Marc Faber's analysis of economic history. He endorses the thumb rule of 'trend is my best friend'.
He is the poster boy of the Indian bull run but admits to have been a bear in the Harshad Mehta days and believes that a person in the market should be like a chameleon. He calls the markets as temples of capitalism and believes that they are the ultimate arbitrators.
Much like Mr Warren Buffet, he buys into the business model of a company and for judging the longevity and growth potential, he gives top priority to 'competitive ability', 'scalability' and 'management quality' of the enterprise. The 'entrepreneur', according to Jhunjhunwala is what makes an invaluable difference to his expected investment returns. According to Jhunjhunwala, believing in the vision and the beliefs of the entrepreneur and validating the risks that may not be perceived by the entrepreneur are the key success factors for an investor.

Jhunjhunwala has managed to identify numerous multi-baggers in the past decade, notable being Karur Vysya Bank, Praj Industries, Crisil, Titan, Nagarjuna, HOEL and PSUs like BEML and Bharat Electronics, among others. The typical traits to look for while identifying potential multi-baggers, according to Jhunjhunwala are - low institutional holding, under-researched and general pessimism about the stock.
A good time to sell a stock, according to Jhunjhunwala, is not based on any 'price' targets, but when the 'earnings' expectations have peaked or the business model has peaked or the valuations appear ridiculously unreasonable.Recently Mr.Jhunjunwala announced that he will spend around 1billion dollar for charity in 2020, But he is not ready to disclose his current value of assets.

Source:- wikipedia

 

Bulls Vs Bears - Oh God..!! Pls save me.

For people in the stock markets, every wish and prayer is invariably connected with the stock market. Earlier, the prayer meant wishing for profits on Dalal Street but today, we have to bring the entire globe into our prayers. Thus our wish list now encompasses peace and prosperity from Dalal Street to Shanghai, Washington and Europe.!!!!

Here is what we pray for and hope Godess Durga answers most of them…

·         Oh Goddess! Please keep away the bears from Dalal Street. Please herd them off elsewhere but not to Dow Jones or Hang Seng or Europe.

·         Goddess, please ensure that the bull remains happy and is never left wanting for anything. If the bull is happy, You can be assured that we mere mortals will be happy.

·         Goddess, we pray you help resolve the problems in Greece. Now that You are prayed all around the world, thanks to the millions of NRIs spread across the globe, surely resolving the Greece crisis should not possess any trouble.

·         Goddess, please bless the US President Obama too. He is currently falling fast on the popularity polls and if this continues, this could be the last we hear and see Obama. Please provide jobs for the scores of Americans and kindly push down the unemployment figure from 9% where it seems to be stuck. As You have taught us, our happiness lies in that of the others – if the Americans become happy, the whole world will automatically become happy.

·         Back home, we beg You to give some sense to the UPA govt and push them into action. We pray You give them sense to stop mouthing meaningless data, which casts a doubt on all statistical data which now gets churned from the Govt machinery. Please, get them out of this mess and we are sure, each MP will make uou an offering of at least "Rs.32" each. Huh..

·         Oh Goddess, we pray You grant more strength to our RBI Governor, Subburao. He has consistently done his duty of hiking rates but inflation refuses to come down. You have taught us that we should keep doing our duties without any expectations; so kindly bless him with more strength to tackle the problem of rising inflation and falling growth rate.

·         Oh Goddess, we have so many other problems! Please rid the country of corruption; please ensure uninterrupted power supply for the entire country; please provide us with abundant water and food; please rid the roads of all potholes; please bless us with an able leader;  please hike our agriculture production; please give builders sense to build affordable homes. Phew..!!! Yes, these are seemingly impossible tasks but for a Goddess with Your strength, surely these problems are easy to handle. 

Food for thought:

      We know, Your pandals and pooja’s have become more about showing off than about spiritualism. We humans seem to have got carried away with commercialization of everything and have forgotten you in the midst of all this. Please forgive us and we hope you grant us the wisdom to stop this endless pursuit of material things.