Don’t Buy Depreciating Assets! Rather Buy Appreciating Assets!!
Scenario 1 - Buying a TATA Tiago Car❌
➦TATA Tiago ex-showroom price in Bengaluru cost Rs.7,79,000/. Approx
➦The moment you take delivery from the showroom, it depreciates at least 40%
➦Maintenance costs and fuel costs are increasing exponentially on a daily basis
➦It does not yield any returns rather it decreases the vehicle value
Scenario2 - Buying a TATAMOTORS shares✔️
➦Total shares that you can buy 1833 qty (7,79,000/425), CMP is 425
➦Even if you buy the shares, it does not fall immediately 40% of their value
➦Since not been given any dividends in the last 5 years which indicates growth
➦49.54% in last 1 year, and since its inception performed by 859.54% returns
➦Largecap with a market cap of ₹1,54,927 cr, the stock is ranked 34
➦Moderate Risk of 2.86x as volatile as Nifty
➦Hold it for at least 10 years and evaluate it, you will be surprised with returns
➦Once you start getting dividends you can use this dividend income for your traveling expenses by hiring the car rental services i.e. OLA, UBER, and other car rental services
➦Assuming you get Rs.20 dividend per share, which is Rs.36,660 per year dividend income, which is sufficient for your annual travel vacation expenses if you are conservative
Disclaimer: These views are for only illustrative purposes to show the difference between appreciating and depreciating assets and not discouraging you to buy a car. Also buying a car will give you a social status but buying a share will make you accumulate wealth. The choice is yours! Just think smartly to make your money work for you!!
link
TATAMOTORS Stock Overview