Please don’t trade, that is my humble request. If you know what you’re doing then it’s fine otherwise you will lose your hard-earned money.
Now coming to your question, you could easily make 1 cr from an investment of 10 lakh in 8–10 years (Sorry 5–7 years is a short horizon).
If you have invested 10 lakh in any of these companies in 2009, then let’s try to calculate the profits.
Now investing 10 lakh in a single company can be dangerous, but if you could have just invested 2–3 lakh in any of these companies then also you could have generated 1 cr.
So my advice is always to diversify because I know 32 cr profit sounds too good to be true but again no one could have predicted that 1 rs stock would go to 570 rs. So always diversify your stock holdings and you can use 30% of your money for risky stocks which have the potential of becoming multi-bagger.
#stocks #longterm #investments #sharemarket #returns #profits #story #india
Can you share your portfolio of stocks, if you are a long term investor?
I invested around 15 lakh in March-April and has made around 7 lakh in profit in June 2020. If the 7 lakh vanishes in the next 5–6 months, I will not worry as I am a long-term investor. The goal is to sell my holdings (partially) after 10–15 years.
I always believe in the strategy: BUY RIGHT, SIT TIGHT. I have been around the stock market since I was 15 years old and started dabbling in markets with my father. I don't know every detail about the stock market, but I know enough to make money in the long term. My father had never made money in trading, in fact, he lost all the money he made in equity due to trading stocks.
Although, many believe trading is profitable and it might be, but if you're starting, NEVER TRADE. Start with understanding the markets and start investing slowly. You might think 1,000 rs is a small number to start but believe me, if you start investing now and increase the amount you invest monthly you will get RICH in 20 years.
#long-term #valueinvestor #investing #portoflio #rich #profits #Stock #Stockmarket
Question: What are some undervalued stocks as of October 2020?
A stock whose current price is Rs.180, and its estimated intrinsic value is said Rs.200, such stock is said to be trading @20% undervaluation.
For profitable investing in the stock market, it is important for investors to buy undervalued stocks and sell them when price nears overvaluation. This is called value investing. But unfortunately many do not know the utility of value investing.
A common man practicing value investing can be far more rewarding than day trading (in terms of risk of loss involved). Hence it will be interesting to know more about undervalued stocks.
Multibagger recommendations for 2020?
Who doesn’t want to hold multi-bagger stocks but finding such stocks are difficult and holding on for 10–15 years is another task but let me know help you with some stocks which have the potential of becoming multi-baggers.
After some research, I have found that some of the stocks can become multi-bagger in 10–15 years.
Long term investors can invest in the following stocks:
1. Sterlite Technologies - Telecommunications
2. Delta Corp - Gaming and Hospitality
3. Bajaj Finserv - Financial Services
4. Borosil Renewables - Solar
5. Atul Limited – Chemicals
Again these won’t give you multi-bagger in the short term, but for the long term, this list will definitely have a few.
Let me explain with one example why I considered these stocks multibagger:
Sterlite Technologies (STL) is a digital technology company with offices in India, China, US, SEA, Europe, and MEA. It is listed on the Bombay Stock Exchange and National Stock Exchange of India. It has 358 patents and is active in over 150 countries.
STL design, build and manage data networks for customers. With core capabilities in optical connectivity, network and system integration, and virtualized access solutions, STL are the industry’s leading end-to-end solutions provider for global data networks. STL partner with global telecom companies, cloud companies, citizen networks, and large enterprises to deliver solutions for their fixed and wireless networks for current and future needs.
With an intense focus on end-to-end network solutions development, STL conducts fundamental research in next-generation network applications at their centers of Excellence. STL has a strong global presence with next-gen optical preform, fiber, and cable manufacturing facilities in India, Italy, China, and Brazil, along with two software-development centres across India and one data centre design facility in the UK.
It has the first optical fiber cable plant in India to receive zero waste to landfill certification.
Optical Fiber and Accessories Market in India to Hit $1.66 Billion by 2026, at 17.2% CAGR: AMR
Widespread implementation of 5G, the surge in adoption of fiber to the home (FTTH) connectivity, and the emergence of the internet of things (IoT) drive the growth of the India optical fiber and accessories market. By the end-user, the telecommunication segment held nearly half of the total market share in 2018. On the other hand, by geography, the East region is projected to grow at the fastest CAGR of 23.3% during the study period.
Source: Allied Market Research
Why India needs a fiber network now more than ever?
According to a Nokia Mbit 2018 report, 4G consumption per user (there are 420 million of them) reached 11 GB per month in December 2017, of which video content contributed up to 65 percent of the total mobile data traffic. While this massive uptake of data has been driven by smartphones, optical fiber networks are crucial for securing India’s broadband future. As data consumption keeps growing exponentially and with new technologies such as 5G on the way, wireless platforms will not be enough to meet the demands of bandwidth-guzzling consumers.
“To deliver internet reliably and deliver bandwidth-hungry applications such as live streaming coaching classes, fiber is the most suitable medium for carrying a high amount of data over long distances,” said an industry analyst. While the case for fiber optics has existed since the late 1990s when companies such as HFCL started laying fiber, the economies of scale seem to make sense only now. Fibre investment in India has been low as the telecom operators relied on 2G technology for voice penetration and data. China consumed 13.7 times more fiber than India in 2016.
Sterlite Technologies, which deals in fiber optic cables, has several tailwinds going for it: government initiatives such as Digital India and Smart Cities, the expectation of exponential data growth, and 5G deployment the world over.
Now, all these are past news but the stock is available for cheap right now, and investing in this company for future prospects is such a good idea. Although, the vision is great but the company needs to post strong profits in order to justify the future price growth.
So, if everything works out in favor of STL, I think the stock can easily climb up to 500 from these levels in the next 5–10 years.
Is it too late to buy RIL shares, or will it fall again to 1k lows?
Not it’s not late, I think the stock would go 5,000 in the next 10 years. So if you share the vision of the reliance industries then you could start investing monthly and if it’s fall then invest more so that your average price would come down.
Reasons, what one should invest in RIL? Well, there are so many but essentially Jio is going to be the next big thing and right now there is no separate listing of Jio. So, even if Jio is listed separately in the next 3–4 years, Reliance stock would rally.