No..No..It’s not about life story of Mr.
Buffet or Mr. Jhunjhunwala or other such great Value Investor..
Today’s email relates to Interesting, True
and Inspiring story of a common man (actually 2 common men)...
But, first tell me have you watched “The
Shawshank Redemption” (an American Drama Movie released in 1994)?
In this movie (considered as one of the best
films of all time), the hero was sentenced 20 years’ imprisonment. In the
prison cell, the hero used to dig the (stack) wall of Jail compound with help
of little hammer consistently. His daily output was just fistful of wall debris
but he was having great perseverance. In this way he literally dug a 4.46
metre long* tunnel in period of 17 long Years and escaped through it.
When I watched this movie few days back, I
thought it’s just a movie..how much
patience a man can have...no one waits so long for results in today’s fast
paced life..Nothing such happens in real life.
But as said Human being is the best Creation
of God and Nothing is impossible for him (her).
Mr. Manjhi, on whose life bollywood movie was
released last month, was a labourer from Bihar, India. He did the almost same
type of “magic”.. actually hundred times Bigger Magic than abovementioned movie
hero’s. He cut the mountain which was barrier for his villagers using his
hammer & chisel and made 360 ft long and 30 feet wide path in 22 TOIL FULL
YEARS. Yes, you guessed right. No Govt or other help and No use of other
tools except hammer & chisel. The Mountain Man (popularly known name for
Manhji) was given state funeral by Bihar Govt and the govt also proposed
his name for Padam Shree Award in 2006.
For more..just Google or click above link.
Now, you must be thinking my subject relates
to Money/Wealth and I am talking here about movies.
Wait...What next I am going to share with you
is also like a movie...but 100% true & Inspirational for Long-term
Investors and Supporters of Value Investing and who follow Warren Buffet
Ideology.
Here is our 2nd Common Man...Mr. Mohammed Anwar Ahmed, aged 62 years from Amalner,
Maharashtra, India who personally & literally broke “Mountain of Poverty”
& accumulated huge wealth in 34 odd years
THE BACKGROUND
It was year of 1980. Young Ahmed, aged 27
years inherited Rs. 20,000/- after his father’s death. Coincidently he met one
Mumbai Broker who was there to sell shares of newly set up vegetable oil
company (Yes, Wipro was Vegetable Oil Maker at its start).Due to help
provided by Ahmed in selling shares, the broker offered 100 shares having FV of
Rs. 100 each for Rs. 10,000/- and luckily he accepted this offer and thus
invested Rs. 10,000/- in this promising company.
THE JOURNEY TO WEALTH
After buying 10,000/- shares, Ahmed started to
think himself as Wipro’s owner in part (and rightly so as shares are not
just piece of papers or entries in D-mat A/c but Share in Business/Ownership in
Company) and vowed that he will NEVER sell a single share of WIPRO till
Mr. Azim Premji is there.
Now, see the power of this ultimate FAITH
in Business & Management and PATIENCE to hold this investment
through all the ups-downs-scams of Indian Share Market:
Let’s us first see how his 10,000 shares
became 96,00,000 shares (yes, you read it right 96 Lacs shares in number)
without buying any further single share.
Source:
http://www.wipro.com/investors/faqs/#q13-DIVIDNED
In 1980, the company declared a 1:1 bonus. He
now had 200 shares.
In 1985, the company declared 1:1 bonus. Now,
400 shares.
In 1987, the company declared 1:1 bonus. 800 shares in his name.
In 1990, the company split the share to Rs.10.
He thus had 8000 shares.
In 1990, the company announced a 1:1 bonus. 8,000*2 = 16,000 shares.
In 1992, the company declared a 1:1 bonus. Shares doubled again, 32,000 shares.
In 1995, the company declared a 1:1 bonus. Again doubled, 64,000 shares now.
In 1997, the company declared 2:1 bonus. He now held 1,92,000 shares.
In 1999, the company split the share to Rs.2. 1,92,000*5= Now 9,60,000 shares.
In 2004, the company declared 2:1 bonus. He thus had 28,80,000 shares.
In 2005, the company declared 1:1 bonus. He came to have 57,60,000 shares.
Latest bonus declared by WIPRO was in 2010.
Ratio was 2:3.
So, by end of 2010, he owned 96,00,000 shares of WIPRO.
Now, his wealth calculation is simple. The
current market price of WIRPO is Rs.555.90** per share (As on 04.09.2015). The
shares are valued at Rs.533.66 crores.
(** Can’t ignore even 0.90 i.e. 90 paise from
share price as this Paisa also contribute Rs.
86.40 Lacs-a very huge & handsome amount for today’s
investors/traders)
Now, “Sone Pe Suhaaga” Part of this story..
Over the past years, the company regularly paid out dividends and increased
them almost every year. Cumulatively he received more than Rs.119
crores as dividend over the past 33 years.
THE PRESENT
Thus Rs.10,000/- investment converted into
minimum of 533+119 = Rs 652 Crores.
Mr Ahmed is now retired (Ooh..Whether such
investor need to work..Yes.. to keep body & mind fit and not for his daily
bread-butter & monthly bills) and donates freely to charity from the
dividends he receives. His “foreign educated” children often advice
him to sell the shares but he has kept his vow of not selling a single share
till Mr.Azim Premji is the working Chairman.
Huuhhh....
What a true &
inspiring story related to Patience...Conviction....Faith....
Really, if a
person has Enormous Patience and Indispensable Faith over his decision & has
CONTROL over Emotions like FEAR & GREED, he can be very Successful in EVERY
FIELD of Life including Stock Markets.
“Have Conviction. Be Patient. Your Patience
may be tested, but your conviction will be rewarded”- Rakesh Jhunjhunwala [Big
B of Indian Stock Market (Big Bull)]
Also See:
http://www.moneycontrol.com/news/business/amalnercitymillionaires-thanks-to-wipro_331113.html
Enjoy NOW!
Pawan Kabra
