SOME INTERESTING STORIES OF STOCKS

It is fascinating and exciting to watch strange events in stock markets across globe. Enormous wealth has created in equity market by innovative human efforts. It is clearly evident by the following examples that equities offer us wonderful wealth creation opportunities in the long term. Let us look at some of the gem of stock stories.

· CoCa Cola: Coca Cola share was available at $40 per share in 1919. By 1995 that 1 share has grown (by way of bonus and right issues) to 47904 shares worth of $3.2 million.
· Wal-Mart: In 1970, 100 shares worth $ 1650. By 2002 the total value is of $ 4 million.
· Dr Reddy Lab: Rs.2500 invested in Dr Reddy Laboratories in 1980 is worth Rs.40 lakh today.
· Reliance: Rs.10000 invested in RIL in 1978 is worth Rs.13850000 in 2009.
· ACC: Rs. 1 lakh invested in ACC in 1979 is worth Rs.5.1 crore by 2006. A whopping 510 bagger.
· Century Textiles: Rs. 1 lakh invested in Century Textiles in 1.23 crore by 2006. A whopping 120 bagger.
· MicroSoft: $1000 invested in Microsoft when it went public in 1986 was worth $289365 by 2003.
· Intel Corporation: $1000 invested in Intel when it went public in 1971 was worth $ 1900000 by 2003.
· Dell Computer: Dell computer is a leading manufacturer of desktops and notebook computers. The company stock traded as low as $ 1 ¾ in 1993 on a disappointing outlook. Earnings in 1994 came in above forecast, the stock reacted strongly; the same year it claimed to $6 and continued to move up to $ 103 by 1997.
· Unitech: Unitech is the second largest real estate company in India. Rs. 1 lakh invested in unitech in 2000 has become Rs. 2.4 crore by 2009. The stock price increased from 34 paisa in 2000 to Rs. 83 by 2009.
. Berkshire Hathaway: Warren buffett's company was trading at $ 7.56 in 1962. Then it rose to $ 151000 by 2008. Now it is trading at $ 102000.

· Educomp Solutions: Carlyle, a global private equity firm bought 16% stake in Educomp Solutions in 2000 for Rs.10 crore. In 2005 Carlyle sold back those shares to Santhanu Prakash, the promoter for Rs. 60 lakhs with almost 94% loss. Less than six months after Carlyle exit, Prakash took Educomp public and today the same shares are worth Rs.300 crores.
What is the take away from these interesting stories across globe? To answer precisely; Long term. Enormous wealth has been created in the stock market in the long... LONG TIME.