"It is easier to find men who will volunteer to die, than to find those who are willing to endure pain with patience." -Julius Caesar
So too works in case of investments. However ,it is difficult for common men and women to concentrate and hold on when so many business channels , with their business analysts and equity experts go on hammering upon you the story that it is sensible to take the profit out of table. They will give much more emphasis on trading or short term investing because it is at the end that the brokerage houses stand to gain!
That is why the brokers on all the major stock exchanges shall cheer at the end of the trade day suggesting when the people go long or short , they stand to gain.I have more often than ever taken names of Warren Buffet, Charlie Munger, Peter Lynch to prove the efficacy of my views. And more often than not many people have suggested that these names are exceptions to the rules.
True!! That is why they are what they are. Fortunately , I know quite a few people around me who have done exceptionally well for themselves. How? Of course, by doing nothing. Nothing at all!
They had family to look after which they did. They took good care of their children's education and added a little bit of knowledge to their already existing kitty.
Now planting a tree is easy. But maintaining it and see it to its full bloom is not that easy.But when you do you get multiple benefits. So happens in case of a company too. And during the long period of investment in these companies all the ways possible.
The different ways in which a company rewards its investors are:
1.Dividends: A very good company not only distributes dividends to its investors but also increases the dividend amount over the years.
2. Bonus shares: A company declares bonus shares for its share holders in order to show th financial strength of the company and also instill the belief that the company has done well financially and will continue to do show in the future.
3. Stock split: A company splits its shares into equal parts when it believes that the price of the stock is on a higher side and hence becoming difficult for investors to buy the stock. It also aims to increase the liquidity of the company.
4. Buy back : A company offers to buy back its shares , when the management believes that the company is highly undervalued and trading at a low price on the bourses. By buying back shares the companies soaks in excess of liquidity and also increases the eps and p/e of the company.
5. De-mergers: The blue chips usually go for de-mergers when they see potential in different divisions of its company. This actually helps in unlocking tremendous value for the existing investors when there is a price discovery on the bourses.
6. Asset sale: Sometimes the company may bed holding large blocks of land and they sell at the current market price which adds value to the company and existing investors.
So too works in case of investments. However ,it is difficult for common men and women to concentrate and hold on when so many business channels , with their business analysts and equity experts go on hammering upon you the story that it is sensible to take the profit out of table. They will give much more emphasis on trading or short term investing because it is at the end that the brokerage houses stand to gain!
That is why the brokers on all the major stock exchanges shall cheer at the end of the trade day suggesting when the people go long or short , they stand to gain.I have more often than ever taken names of Warren Buffet, Charlie Munger, Peter Lynch to prove the efficacy of my views. And more often than not many people have suggested that these names are exceptions to the rules.
True!! That is why they are what they are. Fortunately , I know quite a few people around me who have done exceptionally well for themselves. How? Of course, by doing nothing. Nothing at all!
They had family to look after which they did. They took good care of their children's education and added a little bit of knowledge to their already existing kitty.
Now planting a tree is easy. But maintaining it and see it to its full bloom is not that easy.But when you do you get multiple benefits. So happens in case of a company too. And during the long period of investment in these companies all the ways possible.
The different ways in which a company rewards its investors are:
1.Dividends: A very good company not only distributes dividends to its investors but also increases the dividend amount over the years.
2. Bonus shares: A company declares bonus shares for its share holders in order to show th financial strength of the company and also instill the belief that the company has done well financially and will continue to do show in the future.
3. Stock split: A company splits its shares into equal parts when it believes that the price of the stock is on a higher side and hence becoming difficult for investors to buy the stock. It also aims to increase the liquidity of the company.
4. Buy back : A company offers to buy back its shares , when the management believes that the company is highly undervalued and trading at a low price on the bourses. By buying back shares the companies soaks in excess of liquidity and also increases the eps and p/e of the company.
5. De-mergers: The blue chips usually go for de-mergers when they see potential in different divisions of its company. This actually helps in unlocking tremendous value for the existing investors when there is a price discovery on the bourses.
6. Asset sale: Sometimes the company may bed holding large blocks of land and they sell at the current market price which adds value to the company and existing investors.
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