- Posted by: admin
- Category: Stock Market
Why are you interested in the stock market?
I don’t mean which aspect of the market appeals to you.
What was it that first attracted you towards the stock market?
I don’t know about you. But for me, it was all the success stories I kept hearing about and reading about that got me thinking there’s got to be something worthwhile in this, right?
I kept hearing about these individuals who did nothing but watch TV all day long and buy stuff. That’s the dream, right?
That is what motivated me to delve deeper into the intricacies of the stock market.
So, what I’ve done today, in an attempt to inspire you, is compile a list of the most successful Indians who have gone up against the unbeatable stock market and emerged victoriously.
And besides, it’s just nice to hear about remarkable individuals, isn’t it?
So, here goes.
Rakesh Jhunjhunwala is an Indian investor and trader. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises. He is one of the most successful equity investors in India. He made $2.1 billion with a starting capital of $100.
Jhunjhunwala grew up in Mumbai, where his father was an income tax officer. He is on the board of Aptech and Hungama Digital Media and a number of other companies.
Rakesh Jhunjhunwala believes that trading is not opinion based; it is trend and price based. According to him, in order to be successful in investments, it’s important to keep four things in mind. There has to be an attractive external opportunity, sustainable competitive advantage, operating leverage and high-quality management.
In case you’re curious, I’ve compiled a list of the stocks owned by Rakesh Jhunjhunwala and his wife below.
- A2Z Maintenance and Engineering
- Adinath Exim Resources
- Adlabs Entertainment
- Agro Tech Foods
- Anant Raj
- Aurobindo Pharma
- Autoline Industries
- DB Realty
- Delta Corp
- Dewan Housing Finance
- Edelweiss Capital
- Federal Bank
- Firstsource Solutions
- Geojit BNP Paribas Financial
- Hindustan Oil Exploration Company
- HT Media
- ICICI Pru Life Insurance
- Ion Exchange (India)
- Jet Airways
- Karur Vysya Bank
- Kesoram Industries
- Mandhana Retail Ventures
- Mcnally Bharat Engineering
- Orient Cement
- Pipavav Defence and Offshore
- Polaris Consulting and Services Ltd.
- Prakash Industries
- Prime Focus
- Prozone Capital Shopping Centres
- Rallis India
- Radico Khaitan
- Sterling Holiday Resorts
- Titan Company
- TV18 Broadcast
- VIP India
- Viceroy Hotels
Rakesh Jhunjhunwala is pretty much a legend in the Indian stock market.
His story is really inspiring, isn’t it?
You can watch his whole story here (link)
Are you guys ready for the next one?
You must have heard of the D Mart supermarket chain, right?
Well, Radhakishan Damani is the owner of D Mart.
Today, Damani is valued at about $1.1 billion, which he earned from almost nothing at all.
Radhakishan Damani began his career as a trader in ball bearings. He had no intentions of entering the stock market. After his father’s death, however, circumstances forced him into stockbroking.
It took him a while to figure his way out. A few of his initial bets tanked. Gradually, however, he figured it out.
Damani followed a simple strategy. He would take a time horizon of about 5 to 10 years, and see whether the company had the potential to grow in that time horizon.
This strategy paid off for him and he gradually built up his fortune during the late 80s and the early 90s.
Radhakishan Damani is also one of the few people to have gone up against Harshad Mehta, the big bull of the stock market, and emerged victorious.
Over a few decades, Damani evolved into one of the best value investors in the stock market. His investments included the following.
- GE Capital Transportation Industries
- VST Industries
- Samtel Ltd
- Schlafhorst Eng
- Somany Ceramics
- Jay Shree Tea
- 3M India
You know what the funny thing is, though?
After reaching such great heights in the stock market, in 2001, Radhakishan Damani suddenly quit stock trading and entered the retail industry. That was when he set up D Mart.
D Mart is a chain of supermarkets owned by its parent company, Avenue Supermarkets Ltd. D Mart has 91 stores across India and is the third largest in the industry.
Damani owns a 52% stake in D Mart
Radhakishan Damani’s story is incredible, isn’t it?
He’s actually one of India’s finest value investors.
So read up on his investing techniques. Clearly, they work!
Nemish Shah is the co-founder of ENAM, one of the best investment houses in India. He’s also one of the top retail investors in the country.
Nemish Shah’s investment philosophy is actually quite similar to that of Warren Buffet. He believes in investing in firms that benefit from growing consumption.
Shah’s investments in Asahi India, the supplier of automotive glass, have multiplied about 3 or 4 times in 3 years.
I’ve listed his main investment principles below.
- If the return on capital employed (ROCE) numbers are less than nine percent, the company is not worth investing in.
- The most important thing is how the firm’s future growth is planned. When promoters constantly raise capital, the equity gets diluted.
According to Nemish Shah, it is mandatory to look at the quality of management before investing. As long as the management is focused and understands the allocation of capital, the company has the potential for future growth.
Shah focuses on long-term investing in the Indian equity markets. He uses a bottom-up research approach to identify high-quality businesses which have sustainable competitive advantages and the capability for long-term growth.
Although Nemish Shah is one of the best retail investors in India, there is not a lot of information available about him. He is a deeply spiritual person and is notoriously private.
However, his investing techniques are excellent and you can certainly try them out yourself.
There are, of course, a lot of other noteworthy investors in India. I just picked three that inspired me.
You can look up the other impressive investors and their respective techniques. And if there is anything you would like to add, feel free to leave a comment.