How an investment of Rs.10000 grew to Rs.535 Crores in 34 years
Buy a demat account ,Invest in a blue chip stocks and become billionaire.
If I had the technology to send a message back in time, I would tell my father in 1980 to “Use Rs.10,000 to buy 100 shares of Wipro as an one-time investment and never sell it for the next 30-35 years.” If he had done that his investment would now be worth about Rs.535 crores. Yes, you read that right. Crores, not thousands or lakhs.
This is one of the common examples given when people come into investing in shares in India. Almost every indian blog about investing in stock markets give this example and I also post this here as requested by a reader. Lot of people think that it is a lie and don’t believe it, but it is possible and there are numbers to prove it.
Rs.10,000 to Rs.535 Crores
Lets just assume that you bought 100 shares of Wipro each at a face value of Rs.100 in the year 1980. Total investment: Rs.10,000. You don’t touch it at all, no profit booking or buying more shares. Occasionally companies provide benefits to its shareholders by way of corporate actions. They could provide bonus shares for shares that you hold, they could do a stock split where a high face value share would be broken down into smaller face value shares but number of shares increases proportionately, etc.
Wipro has done various such bonuses and stock splits in its history of 1980-2014. Lets now see the different corporate actions and how the number of stocks would’ve grown.