D-Mart Owner RK Damani Success Story: Radha Kishan Damani or RK Dami is a Mumbai based billionaire investor, businessman, and owner of the mega-retail chain stores “D-Mart” in India. The veteran investor Rakesh Jhunjhunwala considers him as his guru (mentor) in the Indian share market. Here are some interesting facts about RK Damani
Current Age: 66 (Born 1954)
Net worth: $15.5 Billion
Occupation: Trader, Investor, Businessman
Status: Self-Made Billionaire
According to Forbes’s latest Richest Indian’s list, RK Damani is the 7th richest person in India, with a net worth of over $15.5 Billion, which is equivalent to over Rs 116,200 Crores.
RK Damani Success Story
— Background
RK Damani does not consider himself as a highly educated person. He dropped out of college while pursuing B Com from the University of Mumbai. Before entering the stock market, RK Damani had a small ‘ball-bearing’ business. However, after the death of his father, he started working as a stockbroker in his family business. He was 32 at that time.
Therefore, unlike most tech entrepreneurs who start their startup journey in their 20s, RK Damani was a little late to join this journey, still was able to make it big.
— Stock Market Career
Although RK Damani started his career as a stockbroker, he soon understood that if he wants to make real money from the market, then he needed to trade his own money in the market, instead of being just a broker. And soon he started trading his in the Indian stock market.
RK Damani made a lot of profits from his trading in stocks. He was a very flexible trader and believed in making profits using different market swings. For example, during the Harshad Mehta scam, he made a lot of money by ‘Short-selling’ the stocks, which was not common at that time. However, after getting influenced by value investor Chandrakant Sampat, later RK Damini changed his approach. He shifted to long-term value investing.
RK Damani made a lot of money by investing and holding multi-baggers stocks. A few best-performing stocks from his portfolio are VST Industries, Sundaram Finance, Indian Cement, and Blue Dart. He also invested in VST Industries at an average of Rs 85 and it is currently trading at Rs 3,400. Further, India cement gave a return of +115% to his porfolio.
Some other companies in his portfolio are Food & Inns Ltd, Simplex Infrastructure Ltd, Mangalam Organics, Spencer’s Retail, BF Utilities, Prozone Inty Properties, Kava Ltd, Astra Microwave products, etc.
— D’Mart Owner – The career as a Businessman
RK Damani has been very interested in consumer retails for a long time. That’s why he opened D-mart in 2002 with one store in suburban Mumbai. Nevertheless, being a value investor, this was a very planned move by him.
In March 2017, D-Mart went public by offering its IPO, under the name of the parent company- ‘Avenue Supermarts’. The IPO was a big hit. Avenue supermart offered its shares to the public at a price of Rs 299 and got listed at Rs 604 after over-subscription. (Also read: 10 secrets behind the stunning success of D-Mart’s Radhakishan Damani). Currently, the shares of Avenue Supermarts are trading at Rs 2,372 per share, as of 30 April 2020.
Further, by 2019, D-Mart has over 176 stores spread across Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Daman and Diu, and Punjab. Dmart stores generated a total revenue of Rs 19,916 Crores in the year ending March 2019.
(Fig: Dmart Stores Success Story)
— Other Facts about RK Damani
RK Damani considers himself as both a trader and an Investor. He trades in market swing and invests when he’s getting long-term value.
Personally, Mr. Damani lives a very simple life. He is known as ‘Mr. White and White’ because most of the time he wears a simple white shirt and white trousers. Besides, he avoids media and public gatherings.
That’s all for this RK Damani success story. I hope this article will motivate you towards your own success journey. Let me know whose story should we cover in the next article by commenting below. Happy Investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
A Brief Study on Raamdeo Agarwal Success Story: If you are involved in the Indian stock market for quite some time, you might already have heard the name of “Raamdeo Agarwal” somewhere on financial websites or the News Channels. Mr. Raamdeo Agarwal is one of the most renowned names in the Investing world. His influence and ‘so-called genius’ was such that he is also known as ‘Warren Buffet from India’.
Raamdeo Agarwal is also popularly known for co-founding Motilal Oswal Financial Services and his family today owns about 36% stake in the company. As of 2018, Mr. Raamdeo Agarwal had a net worth of $1 billion according to Forbes. Further, he is regularly in the spotlight where he has been even interviewed by Saif Ali Khan.
Today, we have a look at Ramdeo Agarwal’s journey in his personal life and in the investment world in search of the spark that has catapulted him to this status. We’ll particularly focus on Raamdeo Agarwal Success Story in the Indian stock market industry.
Raamdeo Agarwal’s Early life
Raamdeo Agarwal hailed from Raipur, Chhattisgarh. Being the son of a farmer he talks shares that the only investment strategy his father knew was saving and investing in his kids. Raamdeo Agarwal moved to Mumbai to complete his higher studies. He pursued Chartered Accountancy and completed the course in five years.
It was in Mumbai where he met his soon to closest associate and business partner Motilal Oswal. Their paths crossed as they lived in the same hostel. Oswal described him as a very bookish person who was very interested in reading company reports and Balance Sheets.
(Left to Right: Raamdeo Agrawal and Motilal Oswal)
Nothing so far? Let’s keep looking for that spark that one of the richest men in India must possess.
Life After entering the Stock Market
Raamdeo Agarwal and Oswal had one common interest, it was the Stock Market. In 1987 they decided to become sub-brokers in the BSE. He managed to become a stockbroker by 1990 and also began investing for himself in the stock market. By doing so he was able to develop a portfolio of over Rs 10 lac.
Over the next few years, we could say that he was lucky to have stayed invested in the stock market when the Harshad Mehta bull run arrived in 1992. His investment of 10 lac had now become 30 crores. Once the bull run was over reports of the Harshad Mehta scam broke out. This saw his investment value drop from 30 crores to 10 crores.
(Left to Right: Warren Buffet and Raamdeo Agrawal)
This was the period where he took a step back to rethink his approach to the markets. In 1994, he went to the US to attend the shareholders meeting of Berkshire Hathway and meet his idol Warren Buffet. After his meeting with Warren Buffet, the first thing he focussed on was getting the most by reading all the letters written by Warren Buffet to Berkshire Hathaway.
It was after this that he changed his investment strategy. Till then his 10 crore portfolio included 225 stocks. He sold most of them and invested in only 15 stocks. This was because he realized that it was the quality and not the quantity that mattered. H later came to call this the Focus approach. His portfolio increased its value to 100 crores by the year 2000. In 2018 Forbes listed him as a billionaire.
Some of notable investments of Raamdeo Agarwal
Here are a few of the famous and most profitable investments made by Mr. Raamdeo Agarwal in the early phase of his career:
Hero Honda – He had purchased Hero Honda stock at Rs. 30 in 1996 and sold it Rs. 2600 in the year 2016. In the 20 year period, he also received a dividend of around Rs 600 per share.
Infosys – He purchased shares of Infosys in mid-90s and sold them to get a return of over 12 times. In this holding period, he also received consistent bonuses and dividends from this stock.
Eicher Motors – He purchased Eicher at Rs. 900. The investment touched over Rs. 32,000 in 2017.
If we consider an investment of one lac in each of these stocks, the three lac portfolio would increase wealth to 1.5 crores i.e over 50 times.
The investment strategies followed by Raamdeo Agarwal have been suited as per his experience. They are as follows
— QGLP (Quality, Growth, Longevity & Price)
QGLP stands for the four factors considered while purchasing a stock.
1. Quality
Raamdeo Agarwal realized the importance of this factor after investing in Financial Technologies. This is an example he shares as one of his poor choices. He made a loss while investing in Financial Technologies (India) Ltd. This made him realize the importance of the quality of management in a company. He purchased the shares of at Rs. 1150 and later was forced to sell at Rs. 150.
Raamdeo ensured that after this he always paid extra attention to the management. He also considers this as a deciding factor as in comparison all the other data is accessible or computable by the regular public. But it is the management that is left in the dark. He ensures that his investments have good, honest, and transparent management. The management should also take care of the shareholders and give timely dividends and at the same time also have capita for growth.
2. Growth
Raamdeo considers a growth stock as one that is of a big company that is not yet popular. By investing in these companies the returns will be high but secured at a low cost. Raamdeo says that investing is nothing but figuring out the present value of all the future earnings and deciding accordingly.
3. Longevity
This factor encourages investors to invest in companies that have been around for a long time. This not only gives the investments some stability but also gives the investors enough data to enable them to take decisions.
4. Price
According to this at the time you buy the stock, its price must be lower than its valuation.
— Raamdeo Agarwal’s Strategy with regards to portfolio
According to Raamdeo an investor for his personal purposes should have invested in a maximum of 15 stocks. According to him, 15 stocks is too much. He instead would suggest 4-5 stocks. Investing in multiple stocks gives investors the benefits of diversification.
But 90-92% of the benefits are claimed by the time the portfolio reached 15. From here on the benefits are slim. An investor wishing to tap into the final 10% would have to invest in numerous stocks. It would reach a point where it also impairs the quality judgment. This because it would not even enable him to go deep enough into finding about the stock.
— Buy and Sell Strategy
Raamdeo put forward the theory of ‘Buy Right, Sit Tight’. According to this, one should research in-depth while purchasing a stock. He should be confident enough to invest at least 10% of his portfolio. He also adds that if things go really awry the price of a quality stock will not just suddenly drop. An investor who has researched enough will see it coming and the gradual decline will give ample time for the investor to exit.
— Disciplined Approach to portfolio
The discipline Raamdeo follows with regards to his portfolio is remarkable. When he noticed that the shares of Berkshire Hathway no longer suit his portfolio filters he decided to sell them. This was despite his idol Warren Buffet remaining invested.
The success story of Raamdeo Agrawal is one of hope to all investors. Throughout his journey, we never found the special greatness spark that we thought is made available to only a selected few. His story shows that at times luck may be in our favor but not to be dependant on it.
Most importantly it also shows that we are to have a disciplined approach to our investments and also to learn from our mistakes. It shows how market tests patience and reward conviction.
Track where the Big Players are investing in the market: There are many investors who keep an eagle-eye on where the big players are investing in the market their stock portfolio. It makes complete sense to track where the big players are investing in the market as these players have already proved their expertise in stock picking through their success in the share market and created huge wealth for themselves. Moreover, a common investor cannot match the mastery, opportunity, resources, and expertise available to these investors.
Therefore, a retail investor can avail the maximum benefit of their expertise by keeping an eye on where the big players are investing in the market.
NOTE: Tracking the portfolio of successful investors is a good idea. However, investing blindly in the stocks where these big players are investing, might get you in trouble. Please do a proper study of the stocks before investing. After all, even these big players are humans and are capable of making mistakes. (Also read: Is Copycat Investing Hurting Your Portfolio?)
How to trackwhere the big players are investing in the market?
There are a few ways by which you can track the investments of big players of the stock market in any share. Let’s discuss those ways.
1. Check the block/bulk deals list
This list of the block and bulk deals are publicly disclosed on NSE/BSE website daily. Investors can check the block and bulk deals to track where the big players are investing in the market.
In a block deal, either theminimum number of 5 lakh shares or an investment amount of Rs 5 crores should be executed. On the other hand, a bulk deal happens when the total quantity of shares bought or sold is greater than 0.5% of the total number of shares of a listed company. Read more here.
You can use this list to find the names of the big players in any stock. Here’s the link for the bulk/block deal on BSE website: Bulk Deals / Block Deals
2. Check the shareholding pattern of the companies
Every company discloses the names of those investors who are holding 1% or greater of the total number of shares. You can check the shareholding pattern to find the name of big players in any stock. You can find the shareholding pattern of a company on the company’s website, NSE/BSE website or financial websites like money control, investing, etc.
For example, here’s the publicly available shareholding pattern for TITAN COMPANY. We all know who holds a large chunk of this stock (RAKESH JHUNJHUNWALA)!!
3. Track Portfolio using financial aggregator websites
There are many financial websites that track the latest portfolio of these big players. For example TRENDLYNE- Superstar Large Shareholder Portfolios. You can follow these financial websites to get the names of the big players in any stock.
Similarly, you can also use the Stockedge mobile app or website to find out the portfolio of big investors in the market. Here’s the link to Stockedge web.
Here are links to the portfolio of a few of the most successful investors in the Indian stock market:
That’s all for this article. Using these simple strategies, any common investor can track where the big players are investing in the market. I hope this post is useful to the readers. If you’ve any questions, feel free to comment below. I’m eager to help. Till next time. Happy Investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Rakesh Jhunjhunwala success story: According to the latest updates on Forbes, the net worth of Rakesh Jhunjhunwala is $3.1 Billion, which is equivalent to over Rs 19,000 Crores. So, how did a regular guy from Mumbai with just Rs 5,000 became one of the most successful stock investors in Indian history? This is what we are going to discuss today.
In this post, we are going to walk you through the journey of Rakesh Jhunjhunwala in the Indian stock market. How he made over Rs 19,000 Crores starting from just Rs 5,000. Let’s get started.
Rakesh Jhunjhunwala success story
— Childhood
Rakesh Jhunjhunwala, also known as the ‘big bull’ or ‘Indian Warren Buffett’ was born on 5th July 1960 in Mumbai. His father was an Income tax officer.
Rakesh Jhunjhunwala consistently used to hear his father discussing stock market with his friends. As he was very curious about stocks, so once he asked his father why the stock price fluctuates daily? His father suggested him to read newspapers as its the news that makes the price of stocks to fluctuate.
Rakesh Jhunjhunwala also expressed his wish to pursue a career in the stock market. However, his father suggested him to first get a graduate degree from a college. Rakesh Jhunjhunwala graduated from Sydenham College in 1985 as a chartered accountant.
After graduation, he again discussed his career goal as a stock market investor with his father. To this, his father replied that he is permitted to pursue any career. However, he also added that he’s not going to give him any money, nor he can ask the initial capital from any of his father’s friends.
— Entering the stock market world
Mr. Rakesh Jhunjhunwala entered the stock market with just Rs 5,000 in 1985. At that time, Sensex was at 150 points (currently Sensex is hovering at 35,000 points).
Nevertheless, soon Rakesh Jhunjhunwala was able to take an amount of Rs 2.5 lakhs from one of his brother’s clients by promising to give higher returns compared to the fixed deposits.
Rakesh Jhunjhunwala’s first big profit was Rs 0.5 million in 1986. He bought 5,000 shares of Tata Tea at Rs 43 and within 3 months it was trading at Rs 143. He made a profit of over 3 times by selling the stocks of Tata tea.
In the next few years. Rakesh Jhunjhunwala made a number of good profits from stocks. Between 1986-89, he earned Rs 20-25 lakhs. His next big investment was Sesa Goa, which he initially bought at Rs 28 and then increased his investment at Rs 35. Soon, the stock rallied to Rs 65.
— Multi-baggers stocks in Rakesh Jhunjhunwala’s Portfolio
Rakesh Jhunjhunwala manages a privately owned stock trading firm called ‘RARE Enterprises’. The name is derived from the first two initials of his name and his wife Mrs. Rekha Jhunjhunwala’s name.
During his long career in the stock market, Rakesh Jhunjhunwala invested in a number of multi-bagger stocks.
In 2002-03, Rakesh Jhunjhunwala bought ‘Titan Company Limited’ at an average price of Rs 3 and currently it is trading at a price of Rs 817. He is holding over 7.5 crore shares of titan company. He has an ‘overall’ holding of 8.45% in the company.
In 2006, he invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 822.20. A few other multi-baggers in Rakesh Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.
Quick Fact: Apart from being in the board of directors of big companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc, Rakesh Jhunjhunwala is also a movie producer. He has produced movies like ‘English-Vinglish’, ‘Shamitabh’, ‘Ki and Ka’. He is the chairman of Hungama Digital media entertainment Pvt Ltd.
Rakesh Jhunjhunwala considers himself as both a trader and a long-term investor. Here’s a quote from his interview with Economic times:
“Short-term trading is for short-term gain. Long-term trading is for long-term capital formation. Trading is what gives you the capital to invest. My trading also helps my investing in the sense I use a lot of technical analysis for trading at times.
If the stock is overpriced, I should sell but my trading skills tell me that the stock can remain overvalued or get more overvalued. Hence, I hold on to my investments.
So, I think they complement each other in many ways but they are two distinct compartments totally.”
Further, Rakesh Jhunjhunwala is extremely bullish towards India’s growing economy and its success as an emerging market.
Overall, Rakesh Jhunjhunwala’s success story is really inspiring for new and old investors. In the end, here’s an amazing quote by Rakesh Jhunjhunwala:
“Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.” – Rakesh Jhunjhunwala
That’s all for the article. Let me know what do you think of Rakesh Jhunjhunwala’s success story in the comment section below. HappyInvesting
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Porinju Veliyath Success Story: The famous stock market investor Porinju Veliyath comes from Kerala from very humble family background. His story is really captivating, he started his career in Mumbai as a floor trader with Kotak securities in 1990, later he joined Parag Parikh securities as a research analyst and worked as a fund manager till 1999. Here he learned the skill of buying and selling of stocks. Then he shifted back to Kochi and founded his own ‘Equity Intelligence’, a portfolio management service.
He is a small-cap value investor. Porinju Veliyath has identified several multi-bagger stocks early in his career such as Shreyas Shipping, Kitex Garments, KRBL etc. He is reported to have made crores for himself and his clients in multi-bagger deals.
In one interview with ET he said:
“Equity investment is not a hectic activity if someone makes it that way, they will underperform. This is something we have to keep simple. Too much information/noise is not good, it takes away a lot of spirit of living”,
and that is why he prefers to come to his farmhouse often where he was actually born. In a calm situation, he’s able to analyze more effectively.
Equity Intelligence is a SEBI registered portfolio manager which was incorporated in the year 2002. The Fund has three key personnel, namely, Porinju Veliyath, the fund manager, Abhilash Varghese, the Director of Operations and Miriam Philip, the relationship manager.
In an interview with ET, Veliyath claimed his investment portfolio has generated 33 percent average compounded returns every year since 2003.
Indeed he is a master of choosing the right stock, here is the portfolio and shareholding of Equity Intelligence, the main fascinating thing about his portfolio is the YoY(year on year) gain
Stock
CMP (Rs)
YoY Gain
Lakshmi Vilas Bank
161
81
TCI
200
50
Hindustan Sanitaryware (HSIL)
324
24
Jubilant Life Science
706
90
Jubilant Industries
315
95
BBTC (Bombay Burmah Trading Corp)
716
102
Tata Global Beverages
143
31
Future Consumer
28
32
Bengal & Assam
1306
202
Vindhya Telelink
643
5
Emkay Global
74
38
Talwalkars
228
12
Nevertheless, he is not correct all the time, for example in the case of Selan Exploration which has yielded a negative return over three years. He said that “We cannot go and casually buy any stock in any industry. One has to be really choosy in picking stocks and that is required every time, anytime,”
As of Feb’17, they are worth of Rs. 742.92 crores. He has also written one insightful book ‘Ohariyiloode Engane Nettam Koyyam’ (Complete step-by-step guide to share market and investing) in 2008 by Dhanam Publications.
Apart from stocks, he loves nature and he has a huge farmhouse in his hometown. Porinju Veliyath is an organic farmer and his farm is spread over acres. There is plenty of water and thus he has a huge pond, the source of water is natural as spring water runs through it. As the land is very fertile, he grows chikku, mangoes, and a number of other vegetables. A lot of birds and animals are there.
He is quite active on twitter and has a huge fan following, there is no doubt that he is a mastermind as it is evident from his recent tweet “Select Indian equities could be the second-best hedge against domestic inflation, the global slowdown, negative rates and deflation, fanaticism/terrorism!”. Some of us might understand this, some might not. But the truth is everyone in the market wants to lose small, whereas he wants to win big!
Being a realist, I don’t have any big ambitions on my India – we just need a below-average corrupt party and an above-average intelligent leader!
That’s all for this post on Porinju Veliyath Success Story. Let me know who is your favorite stock market investor/trader in the comment section below. Happy investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
Dolly Khanna Success Story: Every market produces players- those who churn one multi-baggers after another. Dolly Khanna, although the name may not be quite well known as Rakesh Jhunjhunwala, she is doing quite well off. Her portfolio was quite a mystery for a long time! She has not been interviewed or known before until she bought 1% stake in a company and Indian law makes it compulsory to disclose it to the exchange. Her stake is more than 1% of 14 listed companies now.
Dolly Khanna, the name we hear along with Rajiv Khanna. The couple is based in Chennai. Rajiv Khanna has graduated as a chemical engineer from prestigious IIT Madras. During their initial days, they raised capital from the sale of a family business named ‘Kwality Milk foods’ to Hindustan Unilever in 1995. Since then the golden couple has not looked back. She is in the stock market since 1996 and her portfolio is managed by her husband Rajiv Khanna. Rajiv Khanna is widely known as the brain behind Dolly Khanna’s holdings in the equity market. Her holdings range from the plastic company to the pressure cooker manufacturer.
What makes it interesting is that her stock picks perpetually becomes mega multi-baggers. The couple is quite accurate and expert in picking small potential businesses. Khanna’s are named among the top individual players of the Dalal Street. In 2014, she picked up Nilkamal (India’s top manufacturer of Home and office furniture), the stock which surprisingly has gone up 900% (from Rs 197.30 on March’14 to Rs 1966 as of March’17) in the past 3 years, nearly 10 times.
Their first multi-bagger in their portfolio was Hawkins Cookers. They kept buying stocks till June’09 at the price of 130-140. Today is stock is worth Rs 3400 and also the company has given 70% of its profit as dividends.
Avanti Feeds, Nilkamal, Rain Industry, Emkay Global, NOCIL, PPAP Auto, Sterling Tools, Thirumalai Chemicals, Asian Granito are the few examples of her stocks that went to become multi-baggers once she added them to her portfolio.
Here is the partial portfolio of Dolly Khanna as of December 2017.
Rain Industry is the prime target of her investment followed by Manappuram Finance, NOCIL, Thirumalai Chemicals, and many more. Her other interesting investment is in Trident where she holds 1.03% of the stake as of Dec’16. Since her investment, the price has risen up to 82.25 as of March’17 form 57.55 on Dec’16, giving 42.92% return, She recently bought a lot of shares of Butterfly Gandhimathi, which is also a favorite of Ashish Kacholia. But her main target is Rain Industries where she bought 1.27% of the equity in June’17 and increased it up to 2.57% of equity until December’17.
Nevertheless, if the couple sells some stock, then it doesn’t always mean that they have lost their confidence in the company. It’s just that they might have found something else that’s worth more investing. Avanti Feeds is such an example where she sold many of them even at a low price and prices went even high after the sell-off. Though Avanti had given her a fair amount of gain even at that stage.
The above stocks (along with some others) make up around INR 1 billion. as net worth. Also, there are few stocks that are not yet disclosed to the stock exchange as they are below the statutory limit for reporting. So, the aggregate will definitely roar above INR 1 billion!
During a seminar, Rajiv Khanna said,
“Investors have to move beyond value investing and look at growth stocks if they want to find multi-baggers for their portfolio.”
Generally, the couple is a believer in long-term investment, but sometimes they also sell off the stock if it’s giving them a pretty sum of returns at that stage. Rajiv Khanna says that he relies on public information to make his investment, unlike some market analyst who bothers themselves talking to the management of companies.
So how do they decide? Here are his words :
“Like in tennis you play different games on different courts – hard court, clay court and lawn, we also study the market situation and pick our stocks accordingly. It can be either a value stock, growth stock, momentum stock or buying based on technicals”
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
“One must understand that stock market is a “high risk- high gain” business. It is a full-time business which has its own rules which need to be strictly followed. One has to fall in love with the market. The market rewards you as per your perception of it. If you treat it as a gambling den, it will prove a gamble for you.” -Vijay Kedia
Vijay Kedia is one of the most successful stock investors of the present time. His stock market journey is inspiring for many old and new investors.
Today, let’s re-visit his journey to learn how Vijay Kedia became one of the most triumphant stock investors of India.
Introduction
Vijay Kedia is an ace Indian stock investor based in Mumbai. He is the managing director of ‘Kedia Securities Pvt Ltd’ and his net worth is over 1,000 crores.
Mr. Kedia is involved in the stock market since an age of 19. He is also described as ‘market master’ by economic times.
Background
Vijay Kedia was born in a Marwari family of stockbrokers. His family has a background in the stock market for over decades.
He joined the family business of stock broking at an age of 19 after the death of his father. Since that early age, Vijay Kedia started working as a stockbroker. Nevertheless, just after few years of working in his family business, he left stockbroking to start his trading career.
During his initial days of trading, Vijay Kedia made a number of profitable trades from the market. However, he soon realized that even after making frequent profits, few big losses easily destroyed all his profits. Overall, he wasn’t earning much from his trading.
Therefore he started learning fundamental investment to start investing in the stock market instead of just trading. In the meanwhile, he also moved to Mumbai from Kolkata.
Investing Career
While in Kolkata, Vijay Kedia identified ‘Punjab Tractor’ at Rs 50 which multiplied 10 times in next 3 years. But his investment base was very low in that stock.
In 1992-93, he picked ACC at Rs 300 and sold at around Rs 3,000 within a year and a half. He bought his first house in Mumbai using that money. That gave a lot of encouragement to Vijay Kedia.
During 2004-05, he picked a number of multi-bagger stocks which gave him a return of over 1,000% in the next 10-12 years. Few of the stocks were Atul Auto, Aegis Logistics, and Cera sanitary ware.
For Aegis Logistics, he picked that stock at Rs 20 and bought 5% stake in the company for the very first time in his career. The share did not move much for next one year. However, the market realized the stock’s potential later and the share moved to Rs 300 in no time, giving Vijay Kedia a return of 15x.
Recent Investments: Few of the recent investments of Vijay Kedia in 2017 are Everest Industries, Caplin ltd (Indian stationary company) and Vaibhav global.
He purchased Vaibhav global at an average price of Rs 350 in 2017. Currently, the stock is trading at Rs 714.
Investment Ideology
Vijay believes that an investor must have three qualities: Knowledge, Courage, and Patience.
After his initial losses in trading, Vijay Kedia shifted to investing with an ideology to hold the stocks for long term. Here’s a quote regarding his investment strategy.
“Invest only for long term. Minimum time frame is five years: Rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multi-bagger returns.”
Apart, Vijay Kedia also gives a lot of importance to the management of the company while selecting a stock to invest. Here’s a quote by Vijay Kedia regarding the role of management in a company:
“Management, business growth and understanding the downside risk are the most important things that I look for before buying any shares in any company. I believe that best businesses can be ruined by bad management and bad businesses can be revived by the best management. If management is experienced, aggressive, transparent and dedicated to their business, they will protect your investment in order to protect their own wealth and reputation.”
Vijay Kedia’s success story is motivating for all those investors in the Indian stock market who want to make a huge fortune from stocks. Here’s a quote by Vijay Kedia to end this post:
“Be balanced in your approach. Don’t be very optimistic in an uptrend and very pessimistic in a downtrend. Also, never have regrets;”- Vijay Kedia
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
3 Insanely Successful Stock Market Investors in India that you need to Know– My blog ‘Trade brains’ recently got listed in the top 100 stock blogs and websites for stock traders at feed spot. Hurray!! And in this cheerful occasion, I decided to write something different. Something that every stock investors in India need to know.
And then this idea came to my mind. All those who enter the stock market in India has same dreams. They all want to become absurdly wealthy like few of the known richest investors in the world.
However, I strongly believe that if you want to learn something new; then it’s best to learn from one who has already done it.
If you want to become successful in the stock market, then you should learn from the lives of these iconic stock market investor. How was their journey, what principles they follow, how long they have been investing? etc. So, today I decided to write a post about the ones who are insanely successful in Indian stock market.
How many of them do you know?
Everyone who enters the stock market world knows about Warren Buffet. The greatest investor of all time and one of the richest person in this world who made his fortune by investing in stocks. You might also have heard about Benjamin Graham, Charlie Munger, Peter Lynch etc
But do you know about the preposterously successful investors who made tons of money by investing in Indian stock market?
Yes, I can hear the name in your mind. Rakesh Jhunjhunwala. The name which comes instantly on the mouth of every Indian when we hear the term ‘Rich-Indian-stock-market-investor’. But how much do you know about him? And what about the other successful stock market investors in India?
In this post, I am going to tell you about 3 insanely wealthy stock market investors in India. Further, I will recommend you to read this post till the end as I have kept a surprise bonus there. So, be with me for the next 8-10 minutes to learn all about the most successful stock market investors in India.
3 Insanely Successful Stock Market Investors in India
Rakesh Jhunjhunwala
Net worth: 2.4 Billion USD Born: 5 July 1960 (Age 57), Mumbai India Education: Chartered Accountant College: The University of Mumbai, The Institute of Chartered Accountants of India (ICAI) Occupation: Owner of rare enterprises, investor, Film Producer & trader
Rakesh Jhunjhunwala, also known as, “India’s Warren Buffet” and “The Big Bull’, is one of the most renowned and successful stock market investors in India.
The son of an income tax officer, Rakesh joined the stock market after completing his degree as a chartered accountant. Starting with the initial investment of only Rs 5,000, currently, he is sitting on a huge net worth of around Rs 15,000 crores.
Jhunjhunwala today manages the privately owned asset management firm “RARE Enterprises”. The name RARE is derived from the initials of his name and his wife’s name. That is- ‘Ra’ from his name (Rakesh) and ‘Re’ from his wife’s name (Rekha). He is also the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd.
From the very start, Rakesh Junjhunwala’s ‘risk and reward’ taking ability along with impressive imagination & wisdom earned him great profits.
His first ever large income was from selling 5000 shares of Tata Tea which he had previously bought for Rs. 43 per share and selling them at Rs. 143. His later career was marked by his buying of six crore shares of Titan in 2003 at an average price of around Rs 3. The stock is still in his portfolio and currently trading at Rs 530.
Rakesh Jhunjhunwala follows the ideology of Warren buffet and believes in long-term investment. He strongly advocates the growth of India and it’s rising economy. Mr. Jhunjhunwala is also confident in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’
According to Forbes 2016, Rakesh Jhunjhunwala is India’s 53rd richest person.
Net worth: 11.7 Billion USD (-as of May’2018) Age: 61 Occupation: Investor, Stockbroker, Trader and the Founder & Promoter of Dmart
Radhakishan Damani, also known as ‘Mr white and white’, because of his simple dressing- white shirt and white trousers, is an investor and owner of D-mart. He is also the mentor of billionaire investor Rakesh Jhunjhunwala. RK Damani is known for his low profile and he rarely makes an appearance in public events or press conferences.
On 21st March 2017 i.e. the listing day of Avenue supermart (parent company of D-mart), the stock price rose more than double, from the offer price of Rs 299 and ended up 116% upwards to Rs 648. In the IPO of Avenue Supermart, RK Damani made around Rs 6100 crores in just two days.
RK Damani owns 52% stake in Avenue Supermarts, and Bright Star Investments – his investment company, holds another 16% stake.
RK’s journey in Indian stock market is truly inspiring. He was not always involved in the stock market. He started his career as a trader in ball bearing, with no intentions to enter the stock market. However, his future has something else reserved for him.
“RK Damani entered the market at an age of 32.”
At an age of 32, post his father’s death, RK was forced to close down his ball bearing business and had to join his brother in the stockbroking business, which was inherited from their father.
RK Damani had no idea of what to do in the stock market then. His knowledge of the stock market was very limited and can be considered next to zero when he entered. He made few mistakes initially by speculating the stock prices. However, he soon understood that the market is a heaven for those who want to make a great fortune in life.
As he was involved in stock broking, he also understood that he can’t make lots of money just by watching other people invest. Finally, he started investing for the long term. Gradually, his judgment began getting right, and within the next couple of years, he was standing as one of the most successful investors in the market.
RK Damani’s strategy is quite simple- Invest for the long term, like 5 to 10 years. RK always sees the future prospects of the company before investing and invests only if the product has a potential far ahead in the future.
Net worth: 8000 Crores (1.24 Billion USD) Age – 61 Education: HR College, Mumbai (Bachelor’s degree in Commerce)
California State University (Master’s Degree in Business Administration) Occupation – Founder of Ramesh s Damani Finance Pvt Ltd
Ramesh Damani, the investment guru and one of the most successful stock market investors in India, started his journey to riches in 1990’s when Sensex was 600 points. He holds a bachelor’s degree in commerce from HR College, Mumbai and a master’s degree in Business Administration from California State University.
Ramesh Damani works at privately owned Ramesh s Damani Finance Pvt Ltd.
The son of a successful stock investor, Ramesh Damani became a member of the Bombay Stock Exchange(BSE) in 1989. Initially, Ramesh planned his career as a stockbroker. However, later he started enjoying picking winning stocks and switched to become a long-term investor.
Ramesh Damani’s first famous investment was ‘Infosys’. Coming from a techie background in the US, he knew that Infosys has great future potentials. So, when Infosys became public in 1993, he invested Rs 10 lakhs in it. By 1999, this investment has given him more than 100 times return.
“I learned that just because a stock doubles, it is not a reason to sell it.”- Ramesh Damani
The investment philosophy of Ramesh Damani is easy and simple to understand. He is a long-term investor and suggests not to invest for short-term gain. Further, he advises everyone to make an exit strategy clear before making an investment in any stock. He further adds that the economy of a market is hard to predict; however if you have researched the stock carefully, and had made a good strategy, then you can easily make fortunes in the stock market.
If you want to learn stocks from scratch, I will highly recommend you to read this book: ONE UP ON THE WALL STREET by Peter Lynch- best selling book for stock market beginners.
Raamdeo Aggrawal, the co-founder of Motilal Oswal Group, is another most respectable stock market investor in India.
He is famous for investing in the legendary stock of HERO HONDA in 1995 when HERO was a small cap with a market capitalization of only 1000 crores. Raamdeo Aggrawal invested around Rs 10 lakh in the shares of the two-wheeler manufacturer at Rs 30 apiece, and held on to them for the next 20 years, till the share price rose to Rs 2,600 apiece. Today the market cap of HERO is above 73,000 crores.
During the last 30 year career, Raamdeo Aggrawal investing strategy is based on QGLB: Quality, growth, longevity and bargain value of a company.
Like most great investors, Raamdeo Aggarwal too follows the principles of long-term investment. Among his favorite books to read are- ‘One Up on Wall Street‘ by Peter Lynch and ‘The Intelligent Investor‘ by Benjamin Graham. Further, he is also excited by Michael Porter’s ideas on the competitive structure.
“After 30 years, I understood economic moat is the mantra of investing” -Raamdeo Agrawal
Raamdeo Agrawal suggests the investors not to be driven solely by market trends and advice to research the stock intelligently before investing.
As promised, here is the bonus section. List of few other best stock market investors whom you should know. Further, I have added a link to each of the investors so that you can read further.
Porinju Veliyath, 55 Investor, Founder- Equity Intelligence India Pvt Ltd
That’s all. I hope this post- “3 Insanely Successful Stock Market Investors in India that you need to Know” is helpful to the readers. Please share the post if you liked it. Happy Investing.
Further, do comment below who is your favorite Indian stock market Investor?
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Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting
