Francis Bacon says,
“Knowledge is power”.
Yes. That’s true.
But from where does knowledge comes?
Is it only from education?
Now, all of you must be pondering upon the previous question.
All of us are just jumping on the bandwagon to get higher education, to pursue IIM, IIT, Engineering, and Doctor Ship etc. The list is infite. Education is certainly a significant part of life but is it the only benchmark of success. Can success be achieved only through getting higher degrees?
Then, what was the phenomenon that Mahindra Singh Dhoni, Sachin Tendulkar, Steve Jobs, Mark Zukerberg, Bill Gates turned into warhorses in their corresponding fields being dropouts of the colleges and schools?
The inner-self of a man makes him a conqueror in life. Education is an important asset that all of us possess and it is being considered a quintessential weapon for ages but it is also the inner-self of a man which changes his destiny.
Can farsightedness be so strong that net worth is hiked by $3.6 bn in a single day?
No. It is possible.
The determination, passion, farsightedness, confidence, and Knowledge can beat all the qualifications of the world. Such is a man is India’s 11th richest person, an entrepreneur, a stock Market investor and owner of D-mart Radha Kishan Damani who proves it wrong. Just a 12th pass man built an empire of $10bn.
Radha Kishan Damani was born in Bikaner, Rajasthan in a Marwari family in 1960. His father ran a small business. Radha Kishan never realized his potential unless his father expired. His father’s untimely death led him to start a small business of Ball bearings. Radha Kishan had no practical knowledge of business and stock market. He just scrutinized and reviewed the stock market in his initial days and learned ample valuable lessons. He was greatly influenced by a value investor Mr.Chandrakant Sampat. He made a profit by trading and investing in MNC companies. He first invested in the stock market at the age of 32.
Radha Kishan began investing in the stock market at the age of 32 when SEBI granted him the registration as a stockbroker in 1992. After five years his membership was converted into corporate membership on the name of Damani Shares and Stock Brokers Pvt.Ltd.Radha Kishan Damani initially faced some failures but earned a hefty profit later. Radha Kishan strengthened his knowledge of the stock market through the scam of Manu Manek who used to be a ‘Dalal’ in the 1980s. Presently, he has earned profit mainly through three stocks, a Tobacco Firm VST Industries, Sundaram Finance, and Logistics Service Provider Blue Dart.
Radha Kishan is inspired by a value investor named Chandra Kant Sampat. He considers him his ‘guru’ who has taught him to unlock the intricacies involved in the stock market. The strategy of Mr. Sampat is very lucrative for stock market for beginners and should be applied by every beginner. He followed the strategy of value investing and long term investing from Mr. Sampat. He used to purchase the stocks at a lower price, keep it for longer periods and then sell it. He became the biggest individual shareholder of HDFC in the year 1995.
In 2014, he invested in Logistics called GATI and TCI. Both of these stocks were fundamentally strong and bottom out and earned good returns. He likes to keep his stocks for 10 to 12 years and earns a major profit from long term investment. In 80s and 90s, Radha Kishan held a wide range of stocks of multinational companies and became one of the top investors of India.
In 2001-2002, Ketan Parikh scam occurred wherein he earned well by short-selling. After the crash of 2001 in the stock market, Damani diverted himself into another passion named retailing.
In the same year, Damani grabbed the opportunity when the real estate business was down, he earned a good profit. Radha Kishan had earned good returns from HDFC bank, GATI, Blue Dart, Sundaram Finance, Gillette, and India Cement. The major investments of Radha Kishan are GE Capital Transportation Industries, VST Industries, Samuel Ltd. Somany Ceramics, Jay Shree Tea, 3M India, Century Textiles and Industries, Jubilant Food works limited, etc.
Thus, Radha Kishan Damani made a huge profit just by learning the stock market basics.
Radha Kishan Damani came in limelight in the era of 80s during Harshad Mehta scam when Harshad Mehta was manipulating the stock market by short-selling. Short –selling is a process contrary to the general process of selling the stocks. Generally, first, the stocks are purchased and then it is sold when share prices increase. Thus, shares produce a profit. On the contrary, in short-selling, the shares are sold first and then purchased and profit is availed when the share price is decreased.
Harshad Mehta used the money of the bank to manipulate the stock market. He bought several stocks and reached the stocks to the highest price which was not justifying the fundamentals of the stock market. Despite no change in fundamentals, the stock price was reaching the sky.
Mr. Damani was shocked to witness such manipulation of Harshad Mehta. Radha Kishan was silently figuring out and analyzing the act of controlling the stocks. Soon, Radha Kishan too started short-selling on the same stocks. On one hand, Harshad was continuously buying the stocks and on the other hand, Radha Kishan was continuously selling the stocks. Harshad Mehta manipulation of the stocks caused excessive loss to Radha Kishan but when it was exposed, Mr. Damani earned a huge profit and enhanced its net worth manifolds. Radha Kishan’s ability and insight of stock market basics proved vital.
Radha Kishan had taken franchise of Apna Bazaar in Nerul, Navi Mumbai where he learned a lot more new things about retail business prior onset of D-mart. In 2002, he started purchasing properties at different places for D-Mart. He bought some properties outside Thane and Navi Mumbai where property rates were low in the impression that these properties will come under residential area when it is expanded.
In this way, Radha Kishan’s farsightedness benefitted him greatly. Most of the D-Mart stores are owned by Radha Kishan himself which minimized the cost of the products. In 2011, he had 25 stores of D-Mart and presently he possesses 170 stores all over India. Avenue Supermarts is the parent company of D-Mart under which it is listed in IPO which received a phenomenal opening in the National Stock Exchange which stood Radha Kishan Damani among the top 20 Billionaires. D-mart is the third biggest retailer brand in India-mart has also performed favorably on stock exchange but D-mart share price is dropped by 11% on Monday.
Why D-Mart stores are so popular and successful?
In 1995, many of the shareholders suggested him not to invest in the banking sector because he had purchased abundant shares of HDFC. They advised him that many other profitable shares are available in the market, so as not to waste his money and time on a small venture like HDFC. After some years, those HDFC shares made him a multi-bagger. Then, retail brokers suggested Radha Kishan commence an e-commerce business but Radha Kishan concentrated only on bricks and mortar businesses. Today, D-mart is one of the most successful and popular stores in India.
Radha Kishan Damani is known as Mr. White & White because he likes to wear only a white shirt and trousers. He keeps away from the media. Till now, he has not given any interviews to any media channel. The Big Bull Rakesh Jhunjhunwala who is also known as ‘Warren Buffet of India’ calls Mr. Damani his ‘mentor’.Radha Kishan Damani is an extreme introvert and humble personage. He inspires us to be a personality whose “actions are louder than his words”.Ankur Warikoo; the CEO of NearBuy says,
“It’s not what you know today, that makes you awesome or not.
It’s who you can be tomorrow, should you continue on the path you are on.
Today we are all a fact. Tomorrow we can also be a dream.”
So. Be a dream. Be determined. Be knowledgeable. Be passionate. Be courageous and be the next Radha Kishan Damani because success doesn’t ask your education.
“Stop chasing the money, start chasing the passion”.