Rs. 10,000 to Rs. 10 lacs in 10 years

Stock markets are a dream place to get great returns.

Stock markets are the place where you can loose your financial wealth too.

You need to know the risks and rewards before jumping into markets.

I am a person with 16 years of experience (both bad and good) in stock markets.

Here I try to share my knoledge by starting a small portfolio which invests Rs. 10000 now with an aim to make it Rs. 10 lacs in next 10 years.

Ananda Kumar
http://www.winfromus.com/

dear mr. anandays,

reaslly interesting to see to make 10000 as ten lakhs in ten years.

there are methods (to work out therotically) to make 10000 to ten lakhs in just one year.

but great pundit in stock market will not allow you take the taken after a win - there will be further temption and it will make you make ten lakhs to zero or minu in just one day. that is the mageic of stock market which I have seen in three decades.

I just gave the answer to our friend Mr. Finizsrd - as a nutral - Arbitrator look at the reply and come bak to the quarum by end of June 2008 and report whether I am correct or wrong.

there are many things in the stock market - which one cannot forsee, I am not exceptiuon to it.

As far as Stock market is concerened, as matter of thumb rule, no one should follow others guidance - and one should take their awards associated with all risks associated with investments.

history remebers A.Mehta and other - they also should remember Tata Timken bearings subscrited upto 120 time (interest earned during those days druing part of IPO subscriotion) was equal to total IPO value. ACC was once quoted Rs.12,000 per share. UB Group Herbertson was quoted Rs.24,0000 and many others - where are they now. Had any one invested during their Bull where are those investors.

let us be realistic - expect a small return say between 15% to 24% (or say upto 36%) and get satisfied - otherwise -- let me not conclude.

kind regards

What Anand said is that whatever market is, he will be able to maintain profit that will be slow but steady.

I agree
at the same time one should also rember that none can predict the market.

in the stock market Hedge Funds/Pension fund/ Participatory funds play ahavoc - they have computer models with core maths in their functiuon - no one can match with them - still they promise only between 15 to 24 % return - that is very high in international terms of return (ROI).

If any one so interested in therotical maths. let them calculate return at the monthly compunded interest of 15% p.a. - it is will be mind boggling - even gold has not given such return - monthly compuded interest doubles its value in every 4 years 11 months (approx). when you see it at the end of 100 years (for Rs.100.00) you cannot even digest the real answer what you have worked out. just for academic interest try to work-out the return of 15% p.s. -- monthly compounded in excell sheet (just you will get the answer in a fraction of a second) for Rs.100.00 for 100 years.

in the stock market not only technical analysis, fundamentals, etc., behavious opf market, internation/national events, force majure and many more things plays a vital role - which no one can predit.

Let me give you one example (there are many a share by a name Nagarjua Fertiliser quoted between Rs.9.00 to Rs. 12.00 per share which touched hundred - take the case of RPL - IPo Listed at Rs.120/ then gone down to Rs.58/- and then movedf up to Rs.320/- and then fell at Rs.150/- (reason is Promoter sold 4% of the stake at peak bull run - can any one before hand predict) there are many thing like this - none can predict the market for a longer terms.

after all many investors pour their money from the hard earned fall back reserves - my sincere appeal is let us give our views (whatever may be) but tell clearly to all that rewards as well as riks are for them only. in the stock market past performance will never be a guidance for the future - that is the bitter lesson one should first learn.

Every minute in the stock market is as risky as rewarding. any happending any part of the world will affect/ruin our purse.

subject to the above I sincerely take the advice of Mr. Anandays.

any way without a ridder i may not able to give only positive answers in respect of stock market..

Good.

People have started to reply.

I assume that it is time for me to start building this portfolio and answer the questions.

Now I am starting with 10000.

Invest 5000 each in the following 2 stocks.

1. Simmonds Marshal - CMP Rs. 75 - 66 shares = 4950
2. Bombay Paints - cMP Rs. 74 - 67 shares = 4960

Total = 9910
Commission = 90

Total = 10000

Let us start...

respected sir,

sorry, at first instance I have not understood the way you have taken-up the case (investments).

in otheer words, I have misunderstood you - plainly speaking

normally in Y/A, just for advertisement people use to give some question with their web site I thought yours also of the similar nature - to discourage such things in open quorum, just I counter the question on weak links -

In your case also I did the same. - sorry

In your patient response, you have proved you are at right track (on positive side). Now I am convinced that you can guide the eTI on investments in a better way.

kindly proceed with your version.

Let me withdraw my earlier reponses honourably.

with kind regards

sincerely
psnswaminathan

[p.s.] all small investors put their hard earned money in savings/investments/portfolio. I will be thankful if you can highlight risk elements also while giving positive sides. these savings are meant for their children settlement and to protect themselves during old ages. People who have experience in stock market (like your goodself), it is better to say what not to do while giving positive sides.

had I interfered at wrong time on our course of action, please excuse me, as my intervention is not intenstional, but to protect eTI community. Let me also admit that the I am a new entrant who don't know the dicipline of the group.

regards

sincerely

psnswaminathan

Hi Swaminathan,

No hard feelings.

It was good that you started this conversation, so that I started the actual investment course.

About risk: Althogh I feel these stocks are very good, and risk is very small ( around 10%), One should really know that stock market is a place for high risk and high rewards.

But, I just started a thread of low risk ( Rs. 10k) with an aim of high returns (9.9 lacs). But One should see how big is 10000 for him. If you are comfortable with a risk of 10k, you can really jump start this investment.

thanks

Hi Anand, can we have discussion here or if you like then all discussion can be moved on separate thread reagarding this investment protfolio ?

thanks

Hi Ricky,

you can move it wherever you find attractive and correct place.

a good article - mr. anand deals with an affordable stake - useful for everyone who are interested in stock market.

now with every young people there is a crazy in investing both in real estate and 2nd preference goes to stock market.

certainly this subject will receive good response.

thanks.



[p.s.] my personal view -
until September, market is likely to be under the control of bear (recession 2nd quarter may begins - change of government may also be on the cards -
any predictions after September 2008 will brings GOLD MINES and give great value for Mr. Anand

That is good to know.

@Anand, I meant that maintaining portfolio in single thread and discussion on same on other thread.

that is welcome

One has to be very very lucky for dreams to come true .
Be ware of the market trends
no fundamentals are working
sentiments are sensitive they are fast changing
so take care
Good luck

wellwisher

do you think that in the present recession scenario, investing money in Indian share market is profitable..

Definetely it is.

It is more rewarding to buy a good profit making, growing stock at Rs. 90 now than when it was at Rs. 300.

Example Genus Power now available at 95-100 range.

Simmonds quoting at 120 and Bombay paints ( Now Gruaver and weil) quoting at 73. Book profits. One should be able to realise 12700 after brokerage.

That is 27% in 19 months. At this rate Rs. 10k will become 53k in 10 years (Not bad) but way short of our target Rs. 10 lacs.

Sensex was at 16316 when we started this. Now at 17465 giving 7% in the same period. Against this our portfolio has given 27% ( 4 times)

We need to be active and alert with more participation.

Happy Investing
Ananda Kumar
www.mumbaibull.com

Very nice article.good over all approach as well.Thanks.

Non participation of members is preventing me to give more calls from www.smallcapbuys.com

One can buy Menon Pistons now available at Rs. 70 for the cash in hand.

That is one can buy 100 Menon pistons at Rs. 70 and 125 Tera software now at 39.

This should utilise all the money we have.

Happy Investing
Ananda kumar
http://www.mumbaibull.com
http://www.smallcapbuys.com

Hi Anandmys !

This is really interesting to view it after more than 2 years now, the stock market has recovered in bullish way though slightly going down these few days, so could you share what has been the performance of your selections so far and now what your advise could be like?

You can check all the closed calls by me at

http://www.smallcapbuys.com/Track_Re...ockMarket.aspx

I do not think anyone is following my calls here.

Otherwise I would have given the Menon piston book profit call at 84 as I did in www.smallcapbuys.com

Thank you for your prompt revert Ananda Kumar, watched the link, guess one has to pay to subscribe to it for a year. But myself still a fresher and just looking to get some useful tips directly from you.

It is wonder why you feel that people on this forumn not active, as the site it good and it sends me email for any conversation to the topic of conversation and interest.

Have a nice Day AK, hope to read more from you :)

M.Singh - rcmbusiness

Hi M Singh,

When I give a call, if someone says he has purchased the stock, it makes me commited that I have to update the thread on when to sell/ add etc.

Will try give my next call here.

Seems lots of investors dreams must have come true today with the good uptrend in the Sensex and Nifty, how is it going to perform tomorrow? Any guesses friends?

The 50-share NSE Nifty fell 6.95 points, to close at 5,133.25 and the 30-share BSE Sensex dropped 34.13 points, to end at 17,065.15.

Nifty Futures Trend-
Nifty September 2011 futures closed at 5135.15, at a decrease of 21.55 points over spot closing of 5155..............

Any good FMP's this season?? The last one that i heard was one with a 9 % - 10 % for a min of 6months duration...
Is there anything better ??