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

 

 
 

 Total (%) 214.409%

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