With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Motherson Sumi. Below are my key takeaways.
- I have invested 6 times across these five years.
- It has been a roller coaster ride with this stock because when I first invested in the company, the share price was already at its peak. And then the share price started its downfall.
- During the COVID-19 market crash my XIRR went from an already negative 15% to negative 45%. Ouch!
- The company very recently demerged its wiring business in a separate entity as Montherson Sumi Wiring. With the demerger I got 1 share of Motherson Sumi Wiring for every share of Motherson Sumi Systems. I am including that also in my calculations. Hopefully this demerger should unlock value like it did in the case of my investment in Greenply.
- After four years of negative XIRR, last year I finally saw it go positive. Yay! But the Russian invasion of Ukraine pulled it down. Ouch! And the listing of demerged Motherson Sumi Wiring pulled it up again. Yay!
- My investment in Motherson Sumi has not been able to beat the index fund. Hoping to beat it in the next five years. 🤞
Returns
Profit
XIRR
