How being a lazy investor in Infosys would have rewarded you i n spite of its recent downturn in its fortune
04-Dec-2014 •Research Desk
Time is the friend of the wonderful company, quipped Warren Buffett once. One of the finest examples you will find of such a business is Infosys. True, Infosys has had its good years and bad but let's take a look at what an ordinary investor would have made had he held on. If you had bought only a 100 shares of Infosys at its IPO in 1993, it would have cost you ₹9500. If you had forgotten about it or just never found the time to sell those shares, you would be in luck. Those shares today would be valued at a cool ₹6,10,79,466 to be exact after considering dividend reinvestment.
Of course not all companies are Infosys and not all companies with net you the same results. Time is also the enemy of the mediocre business, Buffett added. Many low-quality businesses will fall by the wayside unable to cope with the changing times. A major factor behind Infosys' success has been its promoters, led by Narayana Murthy who said on Infosys' 30th anniversary, "We have demonstrated that business can be run legally and ethically; that is possible for an Indian company to benchmark with global best; and that any set youngsters with values, hard work, team work and little bit of smartness can indeed be successful entrepreneur." This goes to prove, side with high-quality managements in high-quality businesses and you can expect to make your gains large over the long run. Happy long-term investing!
| Financial Year | Dividend per share (₹) | Dividend amount (₹) | No. of shares after dividend reinvestment |
| FY-94 | 3.5 | 700 | 200 |
| FY-95 | 4.5 | 900 | 200 |
| FY-96 | 5 | 1010 | 202 |
| FY-97 | 5.5 | 2244 | 408 |
| FY-98 | 6 | 2460 | 410 |
| FY-99 | 7.5 | 6165 | 822 |
| FY-00 | 4.5 | 7416 | 1648 |
| FY-01 | 10 | 16490 | 1649 |
| FY-02 | 20 | 33060 | 1653 |
| FY-03 | 27 | 44874 | 1662 |
| FY-04 | 129.5 | 866614 | 6692 |
| FY-05 | 11.5 | 78971 | 6867 |
| FY-06 | 45 | 621180 | 13804 |
| FY-07 | 11.5 | 161138 | 14012 |
| FY-08 | 33.25 | 468559 | 14092 |
| FY-09 | 23.5 | 338847 | 14419 |
| FY-10 | 25 | 366875 | 14675 |
| FY-11 | 60 | 888900 | 14815 |
| FY-12 | 47 | 709183 | 15089 |
| FY-13 | 42 | 644112 | 15336 |
| FY-14 | 63 | 980217 | 15559 |
| FY-15 | 30 | 475740 | 15858 |
