Stock Market or Real estate which one will give better returns ?
Which will give better returns in long term ? : This question will arise in everyone's mind, whether it is better to invest in Real estate or in Stock market ? In my opinion investing in Stock market is better and best in long term. it will give you enormous profit compared to real estate if you are ready to take the risk.
I give you a simple calculation : I take Reliance Industries as my stock for the analysis ( period 1996 -2005 ) Why this ten year period ? because it's a mix of two decades , that is the second of 1990's and first half of 2000. Ok, Why reliance industries ltd ? because it's a large cap company even in those days and well known to everyone, most of the other companies which are large caps today were mid caps at that time, so i avoided mid-caps (?!) . i like to get good return in stock market with large caps without losing my money. That is why Reliance industries limited. Doubt cleared ?
Ok, how i compare real estate with stock ? First i take stock market : Assume i started investing in reliance industries through SIP method , ie., I bought 1 share on Day 1 or first trading day of every month at the closing price . 1996 jan 1 to 2005 dec 1
my total investment comes to : Rs 39422 Total stocks owned : 120 stocks ( 12 stocks each year )
So, as on Dec 30 2005 my portfolio value should be : 120 x Rs 889 = Rs 106680 nearly 160 % return.
In 1997 september reliance issued a bonus of 1:1 So, i got 21 stocks ( ie. from 1996 1 jan to Sep 1 1997, i will own only 21 stocks , so extra bonus 21 stocks ) now the total stocks i owned as on 2005 dec 31st is 141 stocks of reliance. Well the total value of my portfolio is Stocks 141 * Rs 889 ( As per dec 30 2005 closing price ) = Rs 125349 nearly 210% return.
i assume, i have not made any further investment thereafter, and also not sold any single stock.
i let it . in 2008 jan 14 the market value of reliance stock was Rs 3300 .
So, 141 x 3300 = 465300 nearly 1200% return in 12 years. for 24 years i let my money grow, so my investment of Rs 55,83,600. in 36 years : Rs 6,70,03200 . So, your total investment of Rs 39422, grows into Rs 6 Crores, 70 lacks, 3200 rupees. Dividend is extra income.
if you invest Rs 39422 in real estate, i assume you will get 400% return in 10 years, so it will grow upto a maximum of Rs 6 lakhs and 40,000 only. If you take risk and invest in mid caps, the investment return will be much bigger than the large gap. So, i suggest to invest in stock markets, that will give you best returns than real estate investments.
Can we become a Millionaires or billionaires through stock market investment ?
People who are optimistic will believe they can become millionaire or billionaire through stock market trading / investments. Pessimistic will tell it will ruin the life. Well both are true. It all depends on your luck and also your knowledge in stock trading. If i am an optimistic then i should give some proof, here it is.
If you are having doubts whether Stock market can make someone a Millionaire or billionaire with a small amount of investment ? Here you can find how Rs 10000 turned to 53 lakhs in just 8 years - unbelievable watch TTK Prestige stock
Investing in stock market is a good investment. No doubt, you can beat the inflation through the investments in large cap stock, but in addition to that if you filter and select a right stock, then you can become a millionaire or billionaire within a decade time. the recent example is TTK Prestige stock.
TTK Prestige stock traded at Rs 6 in the year 2003 , now in 2011 the stock trading at Rs 3200. Unbelievable return, nearly 533 times your investment amount.
If you invested rs 10000 in TTK prestige, now you will own Rs 53 lakhs.
Not only the increase in price, but they are also giving dividend each year. starting from 20 % to 125 % of the face value.
Face value Rs 10.
So, select right small cap stock and stay invested in the stock for a long time, you will sure become a millionaire, investing rs 10000 is not a big risk.
Traders who made millions through stock market
You can be rich through stock trading, but you can be a wealthy person only if you invest in stocks.
But, there are lot of people who made millions in stock market through stock trading, i list some of them.
1. Jesse livermore : He was a stock trader as well as commodity trader, he made millions of Dollars and lost them in trading, not once, three times in his life time. i write a separate page about this trader. if you read his life history, you will be inspired.
2. Rakesh Jhunjhunwala : A Indian trader who made millions. Joined the billionaire club recently. Every Indian trader should know about this trader as well as investor, he is mix of both. he is called as warren buffet of India.
But, his trading history is not that much open as Jessie.
SIP investments for long term to become a crorepati
Suggestion is, if you are planning to invest rs 2000/ per month in SIP ( Systematic investment plan ) recommend you to invest Rs 1000 in gold, either through ETF or directly buying gold. For the other RS 1000/- buy stocks of a single company, try to find a fundamentally good company in the range of RS 50 - Rs 100/- and start investing in that company every month for Rs 1000/- don't care about the rate whether it goes to Rs 1000, or it goes to 500 rupees anything. , buy every month at the market price without any technical research, continue this method for 10 years, you could be a crorepati. Read the thread about a farmer who invested through SIP every quarterly and became a crorepati ( Millionaire ) in 10 years.
How a farmer became a millionaire through SIP method
I read a story , that a farmer in north india became a millionaire by investing Rs 5000/- quarterly in a particular stock and in 10 years, his portfolio worth Rs 6 crores and even in the down trend of 2008, his net worth in stocks was Rs 2 crores. total amount he invested was just Rs 2 lakhs in total
How to get profit in stock market - Follow FIIs and make profit
How to get profit in stock market, ? everyone will be eager to know the answer, eventhough it is not easy, it is also not a tough job. In recent years, indian debt and equity market is mainly controlled by FII's ( Foreign Institutional Investors ), i found a method to make profit in the market, follow FII's. that's it. How ? well, let us assume that the market is in downtrend, ( ie falling nearly 600 points in nifty or more ) and if FII's make a net buy in cash market in any day ( some huge net buy compared to previous days ) , i suggest you to start buying in the market, within a month, the market will go up, and you can cash atleast 10 % profit. if the market is trending up, and FII's making a net sell in the cash market ( huge net sell compared to previous days ) on any trading day, then just sell your stocks and wait for a downtrend to re-buy as i mentioned above.
please note, that i mentioned net cash buy / sell only in cash market, not in Futures or options, someday they will do net buy in futures or in options and vice versa, but it will not work. buy, only if they make a net buy in cash market, or sell, only if they make a net sell in the cash market. let me know how this theory works for you.
Commodities trading
Q3
Simple method to trade in Nifty option trading
Technical indicators
Stock Market or Real estate better-returns
Tradersir calls - archives
Previous Analysis
Tradersir.com
Which will give better returns in long term ? : This question will arise in everyone's mind, whether it is better to invest in Real estate or in Stock market ? In my opinion investing in Stock market is better and best in long term. it will give you enormous profit compared to real estate if you are ready to take the risk.
I give you a simple calculation : I take Reliance Industries as my stock for the analysis ( period 1996 -2005 ) Why this ten year period ? because it's a mix of two decades , that is the second of 1990's and first half of 2000. Ok, Why reliance industries ltd ? because it's a large cap company even in those days and well known to everyone, most of the other companies which are large caps today were mid caps at that time, so i avoided mid-caps (?!) . i like to get good return in stock market with large caps without losing my money. That is why Reliance industries limited. Doubt cleared ?
Ok, how i compare real estate with stock ? First i take stock market : Assume i started investing in reliance industries through SIP method , ie., I bought 1 share on Day 1 or first trading day of every month at the closing price . 1996 jan 1 to 2005 dec 1
my total investment comes to : Rs 39422 Total stocks owned : 120 stocks ( 12 stocks each year )
So, as on Dec 30 2005 my portfolio value should be : 120 x Rs 889 = Rs 106680 nearly 160 % return.
In 1997 september reliance issued a bonus of 1:1 So, i got 21 stocks ( ie. from 1996 1 jan to Sep 1 1997, i will own only 21 stocks , so extra bonus 21 stocks ) now the total stocks i owned as on 2005 dec 31st is 141 stocks of reliance. Well the total value of my portfolio is Stocks 141 * Rs 889 ( As per dec 30 2005 closing price ) = Rs 125349 nearly 210% return.
i assume, i have not made any further investment thereafter, and also not sold any single stock.
i let it . in 2008 jan 14 the market value of reliance stock was Rs 3300 .
So, 141 x 3300 = 465300 nearly 1200% return in 12 years. for 24 years i let my money grow, so my investment of Rs 55,83,600. in 36 years : Rs 6,70,03200 . So, your total investment of Rs 39422, grows into Rs 6 Crores, 70 lacks, 3200 rupees. Dividend is extra income.
if you invest Rs 39422 in real estate, i assume you will get 400% return in 10 years, so it will grow upto a maximum of Rs 6 lakhs and 40,000 only. If you take risk and invest in mid caps, the investment return will be much bigger than the large gap. So, i suggest to invest in stock markets, that will give you best returns than real estate investments.
Can we become a Millionaires or billionaires through stock market investment ?
People who are optimistic will believe they can become millionaire or billionaire through stock market trading / investments. Pessimistic will tell it will ruin the life. Well both are true. It all depends on your luck and also your knowledge in stock trading. If i am an optimistic then i should give some proof, here it is.
If you are having doubts whether Stock market can make someone a Millionaire or billionaire with a small amount of investment ? Here you can find how Rs 10000 turned to 53 lakhs in just 8 years - unbelievable watch TTK Prestige stock
Investing in stock market is a good investment. No doubt, you can beat the inflation through the investments in large cap stock, but in addition to that if you filter and select a right stock, then you can become a millionaire or billionaire within a decade time. the recent example is TTK Prestige stock.
TTK Prestige stock traded at Rs 6 in the year 2003 , now in 2011 the stock trading at Rs 3200. Unbelievable return, nearly 533 times your investment amount.
If you invested rs 10000 in TTK prestige, now you will own Rs 53 lakhs.
Not only the increase in price, but they are also giving dividend each year. starting from 20 % to 125 % of the face value.
Face value Rs 10.
So, select right small cap stock and stay invested in the stock for a long time, you will sure become a millionaire, investing rs 10000 is not a big risk.
Traders who made millions through stock market
You can be rich through stock trading, but you can be a wealthy person only if you invest in stocks.
But, there are lot of people who made millions in stock market through stock trading, i list some of them.
1. Jesse livermore : He was a stock trader as well as commodity trader, he made millions of Dollars and lost them in trading, not once, three times in his life time. i write a separate page about this trader. if you read his life history, you will be inspired.
2. Rakesh Jhunjhunwala : A Indian trader who made millions. Joined the billionaire club recently. Every Indian trader should know about this trader as well as investor, he is mix of both. he is called as warren buffet of India.
But, his trading history is not that much open as Jessie.
SIP investments for long term to become a crorepati
Suggestion is, if you are planning to invest rs 2000/ per month in SIP ( Systematic investment plan ) recommend you to invest Rs 1000 in gold, either through ETF or directly buying gold. For the other RS 1000/- buy stocks of a single company, try to find a fundamentally good company in the range of RS 50 - Rs 100/- and start investing in that company every month for Rs 1000/- don't care about the rate whether it goes to Rs 1000, or it goes to 500 rupees anything. , buy every month at the market price without any technical research, continue this method for 10 years, you could be a crorepati. Read the thread about a farmer who invested through SIP every quarterly and became a crorepati ( Millionaire ) in 10 years.
How a farmer became a millionaire through SIP method
I read a story , that a farmer in north india became a millionaire by investing Rs 5000/- quarterly in a particular stock and in 10 years, his portfolio worth Rs 6 crores and even in the down trend of 2008, his net worth in stocks was Rs 2 crores. total amount he invested was just Rs 2 lakhs in total
How to get profit in stock market - Follow FIIs and make profit
How to get profit in stock market, ? everyone will be eager to know the answer, eventhough it is not easy, it is also not a tough job. In recent years, indian debt and equity market is mainly controlled by FII's ( Foreign Institutional Investors ), i found a method to make profit in the market, follow FII's. that's it. How ? well, let us assume that the market is in downtrend, ( ie falling nearly 600 points in nifty or more ) and if FII's make a net buy in cash market in any day ( some huge net buy compared to previous days ) , i suggest you to start buying in the market, within a month, the market will go up, and you can cash atleast 10 % profit. if the market is trending up, and FII's making a net sell in the cash market ( huge net sell compared to previous days ) on any trading day, then just sell your stocks and wait for a downtrend to re-buy as i mentioned above.
please note, that i mentioned net cash buy / sell only in cash market, not in Futures or options, someday they will do net buy in futures or in options and vice versa, but it will not work. buy, only if they make a net buy in cash market, or sell, only if they make a net sell in the cash market. let me know how this theory works for you.
Commodities trading
Q3
Simple method to trade in Nifty option trading
Technical indicators
Stock Market or Real estate better-returns
Tradersir calls - archives
Previous Analysis
Tradersir.com
कोई टिप्पणी नहीं:
एक टिप्पणी भेजें