Investment better den consumption.

userid114437

Well-known member
Classic example of How investment is better than consumption!

How Many People are riding ROYAL ENFIELD BIKE ? or wish to ride i t ?
Look at the company's growth

Eicher Motors (Makers of Royal Enfield).

Share Price on September 2001 = Rs. 17.50
Price of Royal Enfield bike in 2001 was Rs.55000/-

If any one would have bought the shares of Eicher Motors instead of a bike than he would have got 3143 shares ((Rs. 55000/ Rs 17.50 (share Price) = 3143 Shares))
Eicher Motor's Share Price as on 4th Aug 2015 is Rs. 20,158, Total Value as 3143 x 20,158= 6.33 crore
55000/- is worth 6.33Crore in 13 Years.
Now he could hv bought a Rolls Royce.
 

kyl

Elite
This is called survivorship bias.

There are more than 5000 listed shares in NSE. How one can be sure that one investing in a particular share will get a such a high return. Had you invested that time in HFCL like Kerry Packer the legendary Australian Investor your share will now be worth only Rs 14-15 from Rs 1450 per share value of those times.

But you are right in overall scenario. Everyone should invest 20% of savings in Stocks for long run.
 
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