Turn on any news channel today the only story I here is of Infosys and Wipro results not in line with expectations, the so call analysts talk as though sky is falling down…
For readers of my blog let me share some common sense of the benefits the investors have derived from WIPRO and INFOSYS in the past couple of decades…
While you read further remember investing is for long term… years together and pass on the legacy to your next generations unless you really need some money …
Let’s look at the story below…
In 1981 The Wipro ltd. issued shares @ 100 / share …. So if one purchases 100 Shares at Rs.100 each his initial investment would have been only 10000 Rupees Investment on Wipro Share in 1981, In the same year company issued bonus shares to its Shareholders in the ratio of 1:1 and year after year there were many such bonus issues that the company gave to its shareholders, nevertheless the share price also grew
In 1981 there was 1:1 Bonus that doubled the initial shares from 100 to 200 shares
In 1985,1:1 Bonus =400 shares,
In 1986 split to Rs 10 =4000 shares
In 1987,1 :1 Bonus =8000
In 1989, 1:1 Bonus =16000
In 1992 ,1:1 Bonus =32000
In 1995 ,1:1 Bonus =64000
In 1997 ,2:1 Bonus =1,92,000
In 1999 Split to Rs 2 =9,60,000
In 2004 2:1 Bonus =28,80,000
In 2005 1:1 Bonus =57,60,000
In 2010 3:2 Bonus =96,00,000
Today after the so called poor performance of one quarter the stock price tanked to 400 levels and you still are sitting on a whooping profit of Rs 400+ Crores !!!
Let’s look at the Infosys story… Investment in 1993 Infosys Share 100 @ 95 = 9500/- ( IPO ) price and if you were unable to pick via IPO form the open market the stock you would have picked up paying 14500 on the opening day the stock opened at 145.
In the year 1994 Infy gave first Bonus issue of 1:1 = 100+100 = 200 Shares
In 1996 Bonus 1:1 =200+200 =400 Share
In 1998 Bonus 1:3 =400 + 1200 = 1600 Share
In 2000 Split Face value 10 to 5 = 1600*2 = 3200 Share
In 2004 Bonus 1:1 = 3200+3200 = 6400 Share
In 2006 Bonus 1:1 = 6400 + 6400 = 12800 Shares
One can expect a bonus again in the year 2012/13 ... the bad economic weather and uncertinity will not last for a long time, for sure there will be optimism back and one can be rest assured that the S & P ratings will soon turn positive
In 2011 Infosys Share after testing an all time high of Rs. 3475 /- per share today the price is at 2350/- after the so called poor results of a couple of quarters, Investment in 1993 Only 9500 /- investment has filled your pockets currently with a sum more than Rs. 4 Crores
Will any other investment like a Real estate, Gold etc. give such returns, I laugh at the Analysts on the television who comment that one should get out from Infosys and Wipro and park funds in other instruments…
In fact the Opposite should be done…if you have missed the bus earlier it’s time to buy shares like Infosys and Wipro and keep them in your portfolio for ever… from current levels too one can expect multifold returns… What else will you buy if you dont buy Infy, Wipro, TCS, HCL, Mindtree from the IT world and add in to your portfolio...
and so …. Why this Kolavri… Info worry… Wipro Worry di…
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