My uncle purchased Maruti Suzuki 800 in the year 1998.
I asked him: “Why did you purchase Maruti in 1998?”
“Becuase it was the best entry segment car in India and had a great market report. The cost was reasonable, the mileage was great and the customer service was fantastic.”
In 2003, Maruti Suzuki has an IPO. The stock rose from the level of 160 in 2003 to 7500 in 2018–19. If he had also invested the same amount in buying the stock, with 40+ times return, Rs 2 lakh would have been valued Rs 80+ lakh.
My brother in law is a distributor of Shree Cement company. They have taken the distributorship in 2008.
I asked him: “Why did you take Shree Cement distributorship?”
“Their product quality was good and they were one of the fastest growing companies. The management was dynamic and the sales and marketing team was impressive.”
After the recession in 2008, Shree Cement stock was trading at the level of Rs 300–400. In 2018–19, it is trading at the level of 16000–17000. If he had also invested some amount in the share price, he would have received almost 50 times return in 10 years.
I started wearing Jockey underwear for the last 10 years. It was the time when people started wearing branded underwear. I remember people wearing low waist jeans to ensure that the word “Jockey” is visible. It was a “craze”.
For me, it is the most comfortable underwear ever. I still wear the same brand.
Page industry ( the parent company of Jockey) share price has moved from the level of 450 in 2008 to 21000 in 2018–19. If I had the wisdom to invest in such a quality product, I would have received 45+ times returns on my investment in 10 years.
My dad loves Titan watches. He purchased his first Titan watch in 1988. Since then he has been buying Titan watches. He even buys Titan watches for gifting purpose.
When I ask him: “Why do you buy Titan watches?”
Dad: “I just love the product quality. I have been wearing the watches since 15–20 years and they are still working fine. The price is also reasonable.”
Titan share price was trading at the level of between 2-10 until 2005. In 2018–19, it is trading at the level of 900. That’s more than 90 times return in 14 years.
There are many more examples of such companies with exemplary products and services. For a retail investor, the best way to earn money in the stock market is to identify such products and services with a consistent track record and invest with a long-term financial goal.
Can you identify such product and services?