Most people think of penny stocks as multi-bagger stock as most of the time, when we look back and check the stock price of successful companies, we see their stock price selling under 1 rupee ₹2 or ₹5 rupees (typical stocks selling at penny prices - that looks undervalued and in cheap valuation). However, that's the effect of stock split and stock bonus offered to the investors who's been investing in that company for the long term.
Multibagger stocks do not necessarily have to be priced at ₹2 or ₹5. They can still sell at more than ₹10,000 and help you get rich and create huge wealth. Whether it's 2021 or any period of the year, the goal of successful investing should be to look for a business that can compound at a high rate and create wealth for investors with the power of compounding effect. Warren Buffett never did stock split because you can buy fractional shares in the US but there's no such option in the Indian stock market. Hence good quality companies need to split their shares very often. More details will be covered in future videos.
Timestamps: 00:00 Intro 00:24 Rakesh Jhunjhunwala Titan Investment at Rs. 3 01:01 How to Find Good Penny Stocks? 01:26 What is Penny Stock Investing? 02:06 Why People Buy Penny Stocks? 02:40 Multibagger Stocks Are Not Penny Stocks 03:41 Stock Splits 05:15 How Stock Split Works? 07:16 Reality of Penny Stock 09:42 Live Example of How High/Low Can It Go? 12:10 Tickertape 12:32 Outro
