Why Investing in Stock Market is Not Risky
In the following images we have the rise in the stock price over a period of 5 years along with the increase in the EPS of the stock over the same period. As one can see stock prices always retraces the growth in per share earnings. Therefore betting on good businesses for long term can a good way to compound the principle because equity has been the highest returning asset class for many decades.
Indusind Bank
Earnings Per Share
2011
|
2012
|
2013
|
2014
|
TTM
|
12.88
|
16.86
|
21.4
|
26.41
|
31.59
|
Total (%) 245.263%
HCL Tech
Earnings Per Share
2011
|
2012
|
2013
|
2014
|
TTM
|
11.81
|
17.22
|
28.6
|
45.97
|
52.2
|
Total (%) 441.99%
MindTree Software
Earnings Per Share
2011
|
2012
|
2013
|
2014
|
2015
|
12.43
|
27.07
|
40.88
|
53.3
|
63.85
|
Total (%) 513.67%
Divi's Lab
Earnings Per Share
2011
|
2012
|
2013
|
2014
|
2015
|
32.41
|
40.19
|
45.34
|
58.26
|
69.49
|
|
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