The miracle of Suzlon … or so… the story goes. One upon a time 3 decades ago there was

a company called Suzlon.

Suzlon – Is it a sureshot multibagger?

Poor people will buy lottery tickets again and again, but will never buy shares. In their whole lifetime they will spend lakhs of rupees on lotteries but will never invest even a thousand rupees in shares. The rich invest their money in shares of the best companies in the country.

There is a big difference between a Share Investor and Share Trader. A Trader will always be poor and work for a living. The rich will NEVER sell their shares. Do you see Mr Tata, Wadia, Birla, Ambani, etc trying to trade shares daily, monthly or yearly? Dividend income is their biggest source of Income.

A share trader has very little respect for dividends. Similarly the shares too has very little to give a share trader. You will be shocked to learn that 99% of the people involved in share market are short term share traders… most of them trade daily (buy & sell the same stock on the same day) which is very, very risky (unless they have some inside information).

Rule number 1. The truth about Money is that you cannot make it quick. If it comes quickly, then it will go quickly.

Rule number 2: Money only stays with those with patience. If you cannot wait 10 to 20 years then you need to leave this video here. It is like growing a tree.

Rule number 3: You cannot become rich without increasing/improving your knowledge. Without Saraswati there will not be Laxmi. Even if you get Laxmi without Saraswati you will end up spending the money. It will not stay with you.

Best examples of people who had Laxmi (wealth) without Saraswati (knowledge) and lost all their money are people who won lottery ticket. Almost all of them have lost that money within 1-5 years and ended up destroying their life and relationships.

That is why Robbers/Thiefs/Conmen never become rich. Because they lack knowledge in things other than robbing.

Everyone who has become rich in any way has done it with their specialization of knowledge – doing research, building real estate, doing business, teaching, selling something, making movies, singing songs, etc.

If you are not rich with the knowledge you now have… that means that knowledge you have is not sufficient to earn you money, so you have to seek/learn something new.

History of Suzlon
Started in the year 1995 by Mister Tulsi Tanti, Suzlon had by the year 2007 reached its pinnacle and was the 5th largest Wind Energy company in the world and its share price was Rupees 398.

Not many companies in India came 5th in the world in manufacturing anything. Suzlon was a rare gem. The success of Suzlon made it the favourite of a lot of Indians in the Share Market.

Then Suzlon did what every company would try to do,It felt the Indian market could saturate, so in an attempt to expand, it tried to expand into western countries. It entered the European Market in 2007 by buying couple of European companies.

In 2007 Suzlon bought Senvion (then called REpower Systems), for Euro 1.4 billion, mostly with borrowed money. On top of that Suzlon couldn’t use cash reserves of Senvion in spite of buying it because of European laws. This was kind of a double whammy.

Came 15 September 2008 and Lehman Brothers filed for bankruptcy. Overnight the credit flow stopped, and these big wind-infrastructure projects needed big credit. This was a triple whammy, the rug was pulled from under Suaz-lon.

Big projects were less after the Lehman Brothers crash, credit was still tight… the Stock Market the world over had one of the biggest crash and Suzlon Energy Share because of its exposure to credit risk started to feel the heat.

Debts started to pile up and the Stock started to sink… it fell from Rupees 398… to Rupees 200 … then to Rupees 170… then to Rupees 150 … to Rupees 85.

By 31 Oct 2008 Suzlon Energy share was trading at Rupees 40, before touching the single digit abyss from where most stock market scripts never comes back.

On 15 Nov 2019 Suzlon Energy share was trading at Rupees 2.25.

Then the turn around miracle happened… watch the above video to learn more.