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Friday, September 4, 2015

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 Sep 2015 (Today) is Rs. 18,100, Total Value as 3143 x 18,100= 5.68 crore
55000/- is worth 5.68 Crore in 13 Years.


Now he could have bought a ROLLS ROYCE.