From Rags To Riches
From Rags To Riches
From Rags To Riches
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.
(*Actually, exact length not disclosed in movie but one person who watched this movie
tried to calculate it in his ways & assumptions. Check his calculation working at
https://yamaloka.wordpress.com/2010/09/06/shawshank-redemption-the-tunnel-
length)
When I watched this movie few days back, I thought it’s just a movie..how
how much patience
a man can have...no one waits so long for results in today’s fast paced life..
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).
So, now we meet our Ist common man of today’s mail. He was (Late) Mr. Dashrath
Manhji (https://en.wikipedia.org/wiki/Dashrath_Manjhi)
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.
Mr. Mohammed Anwar Ahmed, Ahmed, aged 62 years from
Amaln
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.
After buying 10,000/- shares, Ahmed started to think himself as Wipro’s owner in part
(and right
rightly so as shares are not just piece of papers
papers or entries in D-
D-mat A/c but Share
Share in
Business/Ownership
Business/Ownership in Company)
Company) and vowed that he will NEVER sell a single share of
WIPRO till Mr. Azim Premji is there.
Source:
http://www.wipro.com/investors/faqs/ (See Q 12 & 13 for Bonus & Dividend History)
1980, the company declared a 1:1 bonus. He now had 200 shares.
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
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)
THE PRESENT
Thus Rs.10,000/
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
“foreign educated”
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....
http://www.moneycontrol.com/news/business/amalnercitymillionaires-thanks-to-
wipro_331113.html
http://www.seasonalmagazine.com/2014/10/how-modi-can-solve-impossible-land.html
With regards,
Pawan Kabra
pawankabra.blogspot.in