Wealth Creator - Episode 5

We have seen 4 of them, A IT Company, A Paint Company, A Electronics company, A Bank.What is next? Droplets said let's get into your kitchens. Kitchen? Is wealth there too? Wealth says I'm there too as long as you want to create me. How magnanimous? Recently, there was a book published about how this company became a 6,500 Crore company. Imagine our selves just holding .1% of this company. How much is that going to be? Well, that will be a cool sum of 6.5 Crores. That is the power of equities and Power of Compounding. 


What company is that? As usual, there is a clue in there. 

A Small History of the Company - 

  1. It was incorporated as a private limited company on October 22, 1955, in Madras 
  2. It is known for its innovative marketing strategy, be it distributing pamphlet from a helicopter in the fifties or introducing the exchange scheme
  3. Became a deemed public company on June 15th, 1988. (Meaning available for public investment)
  4. Announces landmark achievement of 10 years & 500 stores of Smart Kitchen in 2013.
  5. In 2019, It announces bonus of 5 shares against one share held by the Investor. 
So what company are we talking about ? 

"Jo Biwi Se Kare Pyaar, Woh Prestige Se Kaise Kare Inkaar"
(One who loves his wife, won't say no to Prestige)
There you go! Prestige it is. 

Now let's mean Business, As an investor, we are sure you will also be interested to know how much money Prestige has made for its investors? 

 

From a share price of Rs 10 in Feb 2003, It has gone all the way up to Rs 8160 today, that is 816 times raise... That is an astounding return of 52% Year on Year.. 

To make it further explanatory, A sum of Rs 10,000 invested would have become Rs EIGHTY-ONE LAKHS! in 16 Years 

or let's just assume if one had invested a humble sum of Rs 100 in this company, even that would have amounted to Rs 23 lakhs today! 

We again wish that our readers take time and digest this piece. The more clients we meet, the more we see that a lot of them have not considered about savings and those that have taken the 1st step, still think that a Meagre sum saved in a Bank RD is gonna help them. We seriously hope that this piece helps to awake both the categories from their slumber. 



For financial planning and investment related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. 





Comments

Post a Comment

Popular posts from this blog

Why Investing is Easy - Chapter#1

Image
 We have been planning to write a piece with this title for sometime now. It so happened that last week I was speaking to a good friend from Investing community and he shared a experiance with me. He chanced upon a Doctor and learnt that there are from the same place. So the conversation boiled down to - "What puts food on the plate question". So One was a doctor and another was a full time investor/advisor. The Doctor was quick to point out that - Being Investor is such a easy profession unlike others, One can easily make 30-50% returns every year. My investor friend would only laugh since he knows that he is the not 1st and he will not be last to "think" that investing is Easy.  But of course, Investing is easy. Let me put the facts out here.. Lets say this is Jan 2019 and you started simply started SIP of 10K in a Mutual Fund that invests only in Top 100 stocks or lets say just did a one time purchase of about 1 lac. Here is how the results will look today -  In
Read more

The Small Cap Mania!

Image
 People are flocking to small cap funds like the zombies run towards humans in movies. We have seen this earlier and trust us, this is not gonna have a happy ending. Why so, because we are at the climax and you all know what happens to the zombies at the end of the movie, they all are trapped in one place and get finished off. So, why do I connect zombies with small cap fund investors now?                            Read on – Zombies don’t think – as you would have seen in the movies, all the zombies just run when they sense a living being. Similarly, the frenzy today is, all the investors are flocking towards small cap funds without giving a second thought, just because it has given good returns in the last few years . Zombies fall for the trap – Z’s don’t know what is about to happen next. They flock and fall for the trap laid out as expected. Humans are also the same, they run where the returns are higher and end up making worse mistakes. Enough of zombies, lets get to facts now
Read more

Interim Budget - 2024

Image
 We promised to bring you the Chapter#2 of the Why Investing is easy but in the interim, Government published the Interim Budget and I think its reasonable that our readers expect us to write about it and we write about it. So Chapter#2 can wait... Here's the News from the Interim Budget. “ If it ain't broke, don't fix it.” The Government has not done much mumbo-jumbo in the budget and there is hardly anything for middle class as such. Things look far better now than they were in the past and good thing is Government not trying to tinker things, that are working fine, just for the sake for some "Budget-drama".  Where does that leave us? If you have been reading our budget blogs , you will appreciate the fact that we always want to give a personal touch to what the take aways from the Budget!                                    Take Away# 1 Fix it if its Broken This is so much in contrary to what the Government has done with the Budget but gives a very important cu
Read more