Is It True That Stock Investment is Profitable for Young Entrepreneurs?

Stock Investment Graphic

As someone critical and intelligent, of course, the truth of a statement needs to be examined. How about you?

Have you ever gotten a call from telemarketing or anything that promises to be profitable? I think almost everyone has gotten a call like that.

But if I invite you to invest in shares, do you want to? If you immediately want it just because I asked him, it means you are not investing in stocks, but investing in my trust. And that is the wrongest and problematic thing: trusting something without researching it first.

Alright back to the question of the title of this article, “Is it true that investing in stocks is profitable?” Too bad, the answer is no. Precisely: not always!

In this article, apologize without intending black campaign or entrusted promotion, examples of shares that have proven to make investors profitable, and examples of stocks that have proven detrimental will be displayed. But remember! This is not a recommendation for you so that after reading this article to buy or sell these shares, this is just a fact.

If I mention Krakatau Steel, do you know? Krakatau Steel is the largest steel producer company in Indonesia. Do the stocks benefit the investor? Let me give a price chart.

Krakatau Steel Stocks Graphic

How to assess the benefits of owning this stock? Yes, it can be answered by looking at the first time this stock was on the stock exchange to this day, stock investors from Krakatau Steel always lose regularly. Let me take the example of other companies.

Do you know Unilever Indonesia? A consumer goods company that produces a lot of products that are used daily. I can hardly believe that there are people in Indonesia who have never been in contact with one of Unilever’s products. Is it profitable to own the shares? Here is the price chart.

Unilever Stocks Graphic

Obviously, from the growth in prices, Unilever’s stock investors benefit. Do not stop there. It turns out there is an interesting story if we want to study the movement of stock prices that are profitable for us, for example, Unilever in its past.

Unilever Indonesia (UNVR) listed on the stock exchange in 1982 for Rp 3,175. Let us illustrate by buying one lot (500 shares) in 1982. In 1989, UNVR gave 6: 1 bonus shares, which means that each has six shares will get one bonus. Then, 500 shares will be 583 shares earlier. In 1993, UNVR again distributed bonus shares at a ratio of 66.88: 1. Then, we will have 592 sheets.

In 2000, UNVR conducted a stock split of 1:10, i.e., everyone share became ten shares. So that, 592 sheets to 5920 sheets. In 2003, UNVR returned to stock split 1:10. Thus, our current number of shares is 59,200 shares. Let’s try to calculate how much dividend you got in 2014.

How much capital do you buy UNVR 1 lot? IDR 1,587,500 In 2014, UNVR distributed a dividend of Rp 701 per share, meaning that the total dividend for shares owned was 59,200 x Rp 701 = Rp 41,499,200. So what percentage is the profit of having UNVR shares without having to sell the shares? 2,614 percent!

Is it profitable to own shares? From this article, the picture is clear that wrong in choosing stocks will make us fall into losses.

The importance of learning how to choose profitable stocks is the need to invest knowledge in yourself, such as by reading a book or learning from various sources.

It is true. There are various controversies from the failure of large companies, as I demonstrated in this article. I discussed examples of other stocks that were not successful in my sixth book, titled Bandarmology: When all shares have a bookie.

Investment is like choosing and developing a duck that has a golden egg. It requires patience and sufficient knowledge to succeed — greetings for investment in Indonesia.