Friday, January 22, 2010

Importance of Long Term Investment

Guys, some days back I wrote in one of my posting's bottom line that "try to find invest in those small & medium caps which in future can become large caps".

So in support of that saying I have some data for you people. This data gives the rate of return in 10 years from 1999 to 2009 which includes 2 recessions (dot com bubble burst & recent financial crisis). That means these below prices are not at their all time high, for example in below table first one is Aban offshore ltd whose all time high is sub 5000 level but current price level is 1300 odd level. So bottom line is factoring all type of variations(bullish & as well bearish) in stock price, below is the return you will get in long term...

Company 15-Dec-99 15-Dec-09 Change
Aban Offshore Ltd. 6.7 1,191.20 17705%
Era Infra Engg. Ltd. 1.2 197 16181%
Shriram Transport Finance Co. Ltd. 4.5 451.3 9929%
Kalpataru Power Transmission Ltd. 20 1,020.20 5001%
Jubilant Organosys Ltd. 6.6 332 4907%
Amtek Auto Ltd. 3.8 185.6 4783%
Praj Industries Ltd. 1.9 91 4687%
Pantaloon Retail (India) Ltd. 7.4 345.1 4544%
Havells India Ltd. 9.8 430 4306%
Motherson Sumi Systems Ltd. 3 125.1 4125%

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