There are different cases where people became billionaire through the career in stock market by long term investment. Also at the same time many people lose their entire capital overnight in this stock market.
In this article we will discuss about how a person who invested Rs. 10,000 in 1980 in WIPRO turned to 452 Crores (Rs) in 2017.
In Long term investment, shareholders will get all the benefits from the corporate actions by means of Bonus, stock split etc.
Here we are not discussing about the return which earned through Dividends.
Wipro has done various such bonuses and stock splits in its history of 1980-2017. Lets now see the different corporate actions and how the number of stocks would’ve grown.
|YEAR||ACTION||NUMBER OF SHARES||FACE VALUE|
|1980||Initial Investment||100||Rs. 100|
|1981||1:1 Bonus||200||Rs. 100|
|1985||1:1 Bonus||400||Rs. 100|
|1986||Stock split to FV Rs.10||4,000||Rs. 10|
|1987||1:1 Bonus||8,000||Rs. 10|
|1989||1:1 Bonus||16,000||Rs. 10|
|1992||1:1 Bonus||32,000||Rs. 10|
|1995||1:1 Bonus||64,000||Rs. 10|
|1997||2:1 Bonus||1,92,000||Rs. 10|
|1999||Stock split to FV Rs.2||9,60,000||Rs. 2|
|2004||2:1 Bonus||28,80,000||Rs. 2|
|2005||1:1 Bonus||57,60,000||Rs. 2|
|2010||2:3 Bonus||96,00,000||Rs. 2|
|2017||1:1 Bonus||1,92,00,000||Rs. 2|
The current stock price of Wipro is about Rs.235.69 per share, as of December 2017.
Rs.235.69 × 1,92,00,000 = Rs. 4,525,248,000.00 i.e. about 452 crores .
So the persons who invested only 10,000 Rupees in year 1980 turned to 452 crores in 2017.