Tuesday, July 21, 2009

Does buying a safe heaven help?

I am talking about companies/sectors which are considered safe heavens, i.e. fast moving consumer goods (FMCG) and Pharmaceutical. In a previous article, I already mentioned about the raw deal an investor got when he invested in HUL in 1999. The same applies to Colgate but the time frame is a bit longer. Instead of ten years, it is fifteen years of nothingness. The following figure shows chart of colgate's share price from 1994 January. The price was at INR 500 in January 1994 and it crossed that price in 2009 June, almost after fifteen and a half years.

The only returns an investor got were dividends and after inflation that too will be wiped out. Stay cautious when you invest.
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