Stock Market Learning Blog


Friday, May 15, 2020

How patience works in the stock market

How patience works in the stock market???

                            HI, investors today I am going to write an article about how patience works in the stock market, before going to the post you can analyze yourself what kind of investor you are? Because every person has financial goals in their life we should consider and decide what our investment approach according to my category you should decide are you a

  1. Short term investor
  2. Long-term investor
  3. (or) seasonal investor

But this article is mainly focusing on long-term investment approach, in Warren buffet way

Patience is the biggest investment in the stock market, why patience is more important, how patience works in the stock market, how patience beats the market, this are all the questions raises before the post, below I show you some stocks in the long run how the company performs:

1.     INFOSYS:

Infosys is a one of a topmost IT company in India, Infosys listed as an IPO in 1993 February, the price of 95 Rs each share after that the company has given 8 bonuses and one stock split.

If you bought a 100 shares in 1993 worth 9500 Rs, it becomes now 1,02,400 shares.

Capital appreciation:

Your investment in 1993 is 9500 of 100 shares 100*95= 9500

Now the share was trading at 730 Rs today’s market

102400*730=7,47,52,000 today

Overall worth is approximately today the value is 7.47 crores in 25 years see the small 9500 investments turn into 7 crores

Don’t forget dividend:

Infosys have a good healthy track record in paying a dividend to their shareholders lets calculate simply last 2 years

2016: Rs 24.26

2017: Rs 25.56

Assuming the worth of 100 shares became 102400 shares today and we see the dividends record

2018: Rs 30.50*102400 shares =31,23,200 just one year calculation


If you hold Infosys stock in long term it will enjoy the dividends rest of your life and capital appreciation will be compound effect, and don’t need to hold for 25 years you may sell or buy it in mid’s 2005 to 2018 you may enjoy some bonus issues and dividends, definitely you will be benefited.

2.     WIPRO:

Wipro is one of the top most company in the IT industry; it creates a loyal income to their shareholder to live a happy life with a decent income level. it has created a good wealth to their shareholders in the long run, Wipro is listed as an IPO in the 1990’s at Rs 10 per share

Let's imagine you may buy a 100 shares of Rs 10 each =1000

Now the current share price of Wipro is 330 and its issued bonus and stock splits to their shareholders as follows

100 share of Wipro is turned as 120000 shares now the share price of Wipro is trading at 330 Rs

Don’t forget dividend:

Wipro have a good healthy track record in paying a dividend to their shareholders lets calculate simply last 2 years

2016: Rs 6

2017: Rs 3

Let’s calculate the dividend for last 2 years

2017: Rs 3*120000=480000/-

Apart from that you may buy the stocks in 1990’s the dividend and capital appreciation will be applicable to shareholders, and you may buy some shares in mid-2000 to 2010 and bonus and stocks will applicable and you will get somewhat benefits.

Infosys and Wipro are just an example for long-term investors here there are many companies are there in stock market which as given an income better than Wipro and Infosys you can study other companies listed below and you can analysis your own, still there is a lot of companies in stock market which creates wealth to their shareholders, some of them are follows.

Eicher motors



Page industries



Pidilite industry

Dalmia Bharat

Whirlpool of India

3M India

IIFL Holdings

Gellite India


Its little bit difficult to hold a stock for a long-term, but you have minimum patience level you can get reasonable profits, you can receive an amazing return from your investment.

Hope its helpful….

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