_*Sunday ki Pathashala*_
_Knowledge is Power_
*_Financial Literacy Series_*
21-May-2023
_*Equity investment For Long Term...*_
*Let this Think on it!*
Reliance Industry Ltd made a profit of Rs.1.53 Cr in the year 1973.
In the quarter of Jan-Mar 2023, it made PAT of Rs.19,299 crs. This translates into hourly profit of Rs. 9 Cr every hour.
This is what can happen in once life time!!!
During the last 50 years, the company's leadership/ credentials/ business plans/ strategy/ business model/ financial abilities, etc, got questioned and got tested.
The founder of the company had paralytic attack/ died/ brothers took over / brother splitted. V. P. Singh ran a campaign along with Indian Express Group and got elected as PM.
The company started as a yarn / textile company and got morphed in refinery/ retail/ telecom giant/ renewable energy, etc, and so on and so forth.
But what mattered most was the people running the business had entrepreneur streak and the company was in India.
The Story of Reliance, in a way, is the story of India.
This also is the reflection about equity ownership. Just focus on profitability and profitability only. All other things are distraction. The stock delivered amazing returns, absolutely in line with growth in the profit of the company, and has been a huge wealth creator.
During the last 50 years, the stock (post listing ) has seen years of negative returns and years of no returns!!!
This is not a recommendation to own Reliance but analogy of equity markets!!
_*One of the best ways to create wealth is to own equity MF and hold it for a minimum of a decade.*_ If decade is too much, then just look at the return-less period of Reliance!
-Vijai Mantri
*_Start Early, Invest Regularly for LONG Term..._*
Mutual Fund investment are subject to Market Risk. *Consult Your Financial Advisor (Wealth Doctor) before Investing & Regularly for Portfolio Check up...*
_"Sunday Ki Pathashala"_ is initiative by: -
_*Hitesh R. Pujara.*_
_*Baroda BNP Paribas Mutual Fund*_
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