Wealth Erosion in PSU stocks in last 10 Years

If you had invested in these 15 PSU Stocks 10 YEARS BACK , some of them have gone up but most of them eroded investor wealth .

Total Rs 2960 invested (1 share each ) in December 2009 has been reduced to Rs 1486 as on 17.12.2019. i.e. almost 50 % lost

Just because its a Govt  Stock  and giving high dividend yield of sometimes 5 to 9 %  doesn't make investing sense because at the end of the day your principal investment value is  eroded.

Based on proper study one can  exit  from losing trades and prevent the loss. 

Warren Buffett once proposed a Fourth Law of Motion to explain the pitfalls of active management

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac's talents didn't extend to investing. He lost a bundle in the South Sea Bubble, explaining later, he said  'I can calculate the movement of the stars, but not the madness of men.'


If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion which would have been " For investors as a whole, returns decrease as motion increases ".

Yes. Simply put it means that lot of activity of buying -selling-buying-selling  will only decrease your wealth since you end up paying Brokerage, Capital gains tax , and Consultancy fees and other taxes.

Instead , Buy a good stock and stay put.