MRF story...
There was this news article recently about a man who received few share certificate from his grandfather. The shares were that of MRF Ltd. and were supposedly worth INR 130 Crores now. Apparently the shares were bought sometime in 1990 or 1991 and were long forgotten by his grandfather.
To illustrate the wealth creating impact of MRF Ltd, let us look at the returns given the share over the years. For simplicity, I have considered only the closing prices and have ignored the stock splits and the dividends the stock may have given.
As can be seen from above the stock has exhibited a stupendous CAGR 34% since 1991 till 2017. All data is sourced from BSE website.
Hypothetically speaking if someone had invested Rs 5000 in 1991 in this stock, he would have had a capital of Rs 1.01 Crores at present valuation.
This illustrates the wealth creation potential of good businesses.
To illustrate the wealth creating impact of MRF Ltd, let us look at the returns given the share over the years. For simplicity, I have considered only the closing prices and have ignored the stock splits and the dividends the stock may have given.
As can be seen from above the stock has exhibited a stupendous CAGR 34% since 1991 till 2017. All data is sourced from BSE website.
Hypothetically speaking if someone had invested Rs 5000 in 1991 in this stock, he would have had a capital of Rs 1.01 Crores at present valuation.
This illustrates the wealth creation potential of good businesses.
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