Sterlite Technology – Live example
Posted by netstock on March 19, 2010
When Sterlite Technologies was quoting at around 40 last year no one wanted to buy it simply because there was no end to downside. All of a sudden it started moving up and crossed 250. Everyone analyst jumped in to recommend to buy Sterlite Tech. Everyone knows what happened to Sterlite Tech then. It touched 450 then stock split and gave bonus in March 2010. Suppose you had bought Sterlite Tech at 40 last year for total 1000 shares (i.e. Rs 40000 investment). Now after stock split (5:2) and bonus (1:1) you total shares count would be 5000. Price after split and bonus was approx 90. That means your initial investment of Rs 40000 have now become 450000. Now suppose Sterlite touches to 500 again in next 5 yrs then your total amount would be 25 Lacs (5000*500). Oooph…6150% profit in almost 6 yrs. What else you need guys?
What does this tell?
When you buy a stock always think from long term perspective. You should have confidence and faith in yourself and you will see you succeed in stock market. Fear and Greed will always prohibit you from succeeding in stock market.
We always say “If your luck favours you and your choice is right”, a small amount of investment can make you Millionaire in longer run.
Remember few things -
1. Stock market always fluctuate in short term. Even if you ask any stock market Guru, no one can tell you that what will happen in next moment or next day. It is only long run when your investment starts giving you good return.
2. When you buy you need to buy right and hold tight (Rakesh Jhunjhunwala tip)
3. It is always good that you pickup a stock at its bottom to reap maximum profit (otherwise you will just end up chasing a stock to buy and return may not be very high).
Hope this was useful…
Happy Investing
-Netstock
