Invest with High quality stocks - why?
- Penny Stock Return % (Price always low) vs Quality Stock Return % (Price always High)
- Lets begin, I bought 1000 qty of penny stocks with the price of Rs.25/per share
- My principal amt=(Qty X Price/share) = 1000X25=Rs. 25,000/-
1/n
- Penny Stock Return % (Price always low) vs Quality Stock Return % (Price always High)
- Lets begin, I bought 1000 qty of penny stocks with the price of Rs.25/per share
- My principal amt=(Qty X Price/share) = 1000X25=Rs. 25,000/-
1/n
After 6 months, Let's assume 2 usecase, i.e
- Usecase-1 Penny gives 50% negative return
- Usecase-2 Quality gives 50% negative return
Let see, earnings and returns on both usecase.
2/n
- Usecase-1 Penny gives 50% negative return
- Usecase-2 Quality gives 50% negative return
Let see, earnings and returns on both usecase.
2/n
UC1-The Penny Stock gives negative return of 50%
Per Stock Earning price (Stock price bought per share X return of per stock)=25 of (50/100)=Rs. 12.5/-
Per stock value now (Stock price bought per share - Per Stock Earning Price)=Rs.25 - Rs.12.5/-=Rs. 12.5/-
3/n
Per Stock Earning price (Stock price bought per share X return of per stock)=25 of (50/100)=Rs. 12.5/-
Per stock value now (Stock price bought per share - Per Stock Earning Price)=Rs.25 - Rs.12.5/-=Rs. 12.5/-
3/n
- Overall stock value (Stocky Qty X Per Stock Value now)=1000 X Rs.12.5 = Rs. 12,500/-
- Portfolio Value (Overall stock value - Investment Capital) = Rs. 12,500 - Rs. 25,000/- = - Rs. 12,500/ Loss.
sometime, you can't retrieve principal at all.
4/n
- Portfolio Value (Overall stock value - Investment Capital) = Rs. 12,500 - Rs. 25,000/- = - Rs. 12,500/ Loss.
sometime, you can't retrieve principal at all.
4/n
Penny Stock Risks:
- Liquidity issue, Promoters not be genuine.
- Quickly loss your capital
- No dividends, 50% or 100% retrieval very difficult-stock junks at your portfolio all time.
- Your roadpaths towards deadline, does not create wealth, only helps for traders.
5/n
- Liquidity issue, Promoters not be genuine.
- Quickly loss your capital
- No dividends, 50% or 100% retrieval very difficult-stock junks at your portfolio all time.
- Your roadpaths towards deadline, does not create wealth, only helps for traders.
5/n
Usecase2- The Quality Stock gives negative return of 50%
- Per Stock Earning price (Stock price bought per share X return of per stock)=500 of (50/100)=Rs.250 lost per share
- Per stock value now (Stock Price while Bought - Per Stock Earning Price)=Rs. 500-Rs.250/-=-Rs. 250/-
6/n
- Per Stock Earning price (Stock price bought per share X return of per stock)=500 of (50/100)=Rs.250 lost per share
- Per stock value now (Stock Price while Bought - Per Stock Earning Price)=Rs. 500-Rs.250/-=-Rs. 250/-
6/n
- Overall stock value (Stocky Qty X Per Stock Value Now)=50 X Rs. 250=Rs. 12,500/-
- Portfolio Value (Overall stock value - Investment Capital)=Rs. 12,500 - Rs. 25,000/- =- Rs. 12,500/- Loss.
7/n
- Portfolio Value (Overall stock value - Investment Capital)=Rs. 12,500 - Rs. 25,000/- =- Rs. 12,500/- Loss.
7/n
Quality stock benefits :
- No Liquidity issue, business operations and promoters always professionals
- Ethics of business to become turn positive, it recovers quickly
- Defends your capital - protection
- Growth is widen, gives an awarding
8/n
- No Liquidity issue, business operations and promoters always professionals
- Ethics of business to become turn positive, it recovers quickly
- Defends your capital - protection
- Growth is widen, gives an awarding
8/n
- Dividends, Spilts, Bonus, Dilution i.e. Multifolds returns expected.
- 50% or 100% returns very often recovers.
- Defining a roadpaths for capaital protection and wealth creation in passive manner.
- It doesn't help for traders - only rewards for Long Term investor.
9/n
- 50% or 100% returns very often recovers.
- Defining a roadpaths for capaital protection and wealth creation in passive manner.
- It doesn't help for traders - only rewards for Long Term investor.
9/n
Key matters,
- Qty doesn't matter - Quality matters
- Price doesn't matter - Governance is important
- UPs/Downs good - Recovery possibility is important.
- Investment cost is "ZERO" at somepoint in Quality stock.
#investing #saving @ipo_mantra
10/10
- Qty doesn't matter - Quality matters
- Price doesn't matter - Governance is important
- UPs/Downs good - Recovery possibility is important.
- Investment cost is "ZERO" at somepoint in Quality stock.
#investing #saving @ipo_mantra
10/10
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