a Site on personal investments

Some examples are given to understand the real potential of stock market. Of course these examples are top performers of the whole lot. We don’t know the best of the best all the time. They are like hidden diamonds. But even the easy picks or average, well known stock also perform well and gives higher returns compared to other investments.

Following returns of the stocks calculated starting from 30.4.2003 to 25.9.2006, in the span of 3 years.

Stock name	Price on 30.4.2003	Price on 25.9.2006	Returns in %	Period
Elder pharma	31	343	1006	42 months
CESC	16	299	1769	42 months
Bombay dyeing	48	741	1446	42 months
Mercator lines	24	40 x 10*	1567	42 months
pantaloon	47	1914	3972	42 months
Sesa goa	85	956	1066	42 months
Usha martin	2	153 x 2*	15200	42 months
Bajaj Hindustan	70	297 x 10*	4143	42 months
BEML	70	926	1223	42 months
L&T	201	2611 x 5*	6395	42 months
Gammon India	118	354 x 5*	1400	42 months
Simplex Infra	24	310 x 5*	6358	42 months
Unitech	42	291 x 5*	3364	42 months
ACC	131	967	638	42 months
India cement	13	219	1585	42 months
Birla corp	13	330	2438	42 months
Jaiprakash associates	32	469	1366	42 months

	average		3231%	42 months

* denotes stock split. i.e. one share of Rs10 (1 x 10) may be split into 2 x 5 or 1 x 10 or 5 x 2 etc.

This is the miracle of stock market. We can aim at average return of 25% to 50% per annum which is a small fraction of above example. Yet it is very big in the long run year of after year.