Long term investing is lucrative
L&T ( 5 years, weekly)
Way back in 2004, a friend of mine sold his house for a consideration of Rs 40 lakhs. He wanted my advice about investing that amount. I had told him to pay his capital gains taxes and invest the remainder ( Rs 28 lakhs) equally in NTPC and L&T. He was not convinced and put his money in tax free bonds of NABARD.
Today his Rs 40 lakhs have grown to Rs 53.52 lakhs (CAGR 6%).
But had he invested in NTPC (from Rs 70 to 230)and L&T ( from Rs 182 to Rs 1682) then his wealth of Rs 28 lakhs would have grown to Rs 1 crore plus tax free. That is 30% growth every year.This is the power of investing in equities and staying put for the long haul. Actually 5 years is hardly a long haul. But with media and experts bombarding retail investors every moment, anybody has hardly any patience.
I wish people read this example and follow it for the next five years. There are many bluechips which are on the cusp becoming multi-baggers in the next five years. But one needs to have the conviction and staying power. We will be well rewarded.
Wish you a Very Happy Christmas and a Very Happy New Year 2010!
rgds
Vibhas
Posts
7 comments:
sir,
tell me one or two stocks for 5 years investment.
hi Vibhas,
The biggest bugbear is :
How to identify bluechips which would be likely multi-baggers?
One method is to read your blog.
Second..... !!!
regards,
vin
IDFC, Larsen, HDFC Bank, HDFC
Five years. Buy in bulk so that returns are substantial. No point buying in small quantities.
THANKS FOR REPLY. oNE THING, SIR, HOW WILL SIP DO?
Definitely you have been doing a yeoman job for the investing fraternity by providing classical delivery stocks which can make people millionaire atleast.
dear vibhas,
can NHPC be termed as multibagger?
i want to invest for 10 years.
Kp, I do not track NHPC so I can not comment. Please excuse me.
rgds
Vibhas
Post a Comment