Share Market Analysis - Two sides of a coin

A very good article. One must ponder over the points mentioned in the article. Please read till the end because every coin has 2 sides. And who says that there is gain on One side and loss on the other. You can take benefit from both the side.

It good to read if you are investing in share market….If you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore today. 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! And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore today!
Some guy out there knew this. Today, he is laughing all the way to the bank.So what was the magic strategy that made this guy so rich? Simple.He bought, he waited. Waited for all those share splits and bonus declarations. Waited for the company to grow from strength to strength. Waited even when the shares teetered only to recoup in a few years' time. Just as a child takes time to realize his/ her full potential, so does an investment need time to reward you handsomely. Sure, the times are uncertain now. But let that not scare you to sell for a loss.
Patience pays. Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn't sell their stocks during the May 2006 crash but had, in fact, bought more would be a very happy lot today. Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married! The way I see it, you don't really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.
Do your research. You will learn a thing or two about making crores from a few lakhs. You can still make those crores! Turn a deaf ear at the sceptics; look at beaten down sectors.
Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely. Most people ignore aviation and hotels. And that is why they merit my attention. Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!

And the response to this..........

You have stated only one side of the long term investment story citing Infosys, Ranbaxy and Unitech. That too u have mentioned the investment year as 1980/1992. Now I would like to state that the other side of the investment story pertaining to the year 1992 to date. Take K - 10 stocks. e.g. Square D Software, Himachal Futuristic, Global Tele, Silverline, Pentafour software, SSI etc., If any one invested their money in these stocks during tech boom particularly the period year 1999-2000 and waited till date how many folds their money increased? Everybody lost the principal, interest and ended with huge loss. For their patience they received only mental worries.

Therefore my point is don't wait for longer time. If your investment gives you at least 20/30 percent just come out and invest in some other counter. Select the scrip on the basis of good track record of the company. Invest during correction. Once you book the profit in one company immediately don't switch over to another company blindly. Study the scrip. Take technical look also. It is always good to show you an idea of support and resistance to you.

All the existing and new investors are please be careful on the market.. Don't give weightage to one side of the story. Each coin has two sides. so see , think and decide it.

Anonymous