People who have played the stock market well in India
The stock market is a tricky place. It is not possible for everyone to make a profit off of stocks. Investors have traditionally had a tough time trying to figure out which stocks to invest in and which ones to avoid. In order to obtain information about specific stocks and indices lie NIFTY 100, you can visit BankBazaar.com. For every investor who has been successful, there are hundreds, if not thousands, of people who have not been successful. For every investment that an investor has got high returns on, there might be tens of other investments in which he or she did not get a high return on. It is important to understand that there is no magic formula for investing in the stock market. Getting good returns on the market is a product of years of careful study, investments, losses, and some measure of luck. There are no shortcuts to investing in the stock market and there is no overnight success. Like all good things, high returns on the stock market will take time.
Through all of this, there are some who have profited from the stock market. These people often shy away from the limelight. In order to help newer investors who are looking for guidance in investing in the stock market, we list some of the success stories here. This list does not include extremely famous people. The list comprises people who have different approaches to investing in the stock market and have had success following their line of investing. It is worth noting that this list is not an exhaustive one.
A person in his late forties, who began stock investments in the late 1990s, Mukul Agrawal from Mumbai is one of the few success stories on Dalal Street, India’s equivalent of Wall Street in the USA. His secret to success is having two separate portfolios. He keeps one portfolio for investments alone. He keeps the other portfolio for trading in stocks alone. He bases all his investments on solid research. He believes in trading aggressively on the stock market. He also makes use of a strategy that involves multiple entries into and multiple exits from a given sector. In order to perfect his trades, he talks to top-level people involved in the stock market.
Kalpraj Dharamshi is also from Mumbai and he is also in his late forties. He began trading in the stock market in the late 1980s. He makes sure to perform a lot of research on companies before investing in their stocks. His speciality lies in identifying niche businesses that have great potential to give big returns. He also invests in a company that is known for running casinos in Goa. A significant point to note is that he lost most of his investments in the stock market during the downturn in the market after the incidents of 9/11 that rocked the USA. Instead of despairing and giving up altogether, he chose to clear his portfolio and start afresh. This is the hallmark of a true investor. He cut his losses to begin anew. This is something admirable.
Khemani, who is based out of Delhi, is one of a rare crop of youngsters who have made it big in the stock market. Before foraying into the stock market, he read up on books about the stock market by illustrious people. These books appear to have guided and shaped his ideas on stock investments. He claims to have invested in some multi-baggers that gave him close to 900% returns in some cases. His method of investing is based on understanding the business that he is investing in. He also prefers to invest in companies that are operated by owners rather than companies that are not. He also prefers to invest in lesser known companies. He feels that this is the best method to approach investments in companies.
Rakesh Jhunjhunwala is one of the more prominent investors in the stock market scene. He has been investing in the stock market for close to three decades. He prefers to make his investments based on trends. He does not shy away from making bigger bets if he believes in a company’s potential to show a positive trend. As early as 1986, he made one of his bigger bets on Titan Industries. While he does make big bets, it does not imply that he makes them with his gut feeling. While he does not spend too much time analysing a company, he ensures he is aware of the base figures of the company. He also sets store by the price-to-earnings ratios of companies he wants to invest in.
Arguably another one of the more prominent investors in India, Ramesh Damani believes in investing in companies for the long term. In order to do this, he prefers to invest in successful companies. He does not believe in selling a stock just because its value went up. He prefers to wait and see if the price of the stock goes higher. He also prefers to get an early start to investing in companies. That is, he prefers to be an early investor in companies. He also believes that when the market is down, it is time to buy aggressively.
Parag Parikh is one of India’s most successful stock market investors. He has clean ideas on how to invest in the stock market. He believes in buying a stock cheap and betting long-term on it. A precondition to buying a certain stock is that he should be able to understand the business model of the company. He believes in setting aside emotion when it comes to studying the market. He believes in disciplined investing for the long term.
While this is by no means an exhaustive list of Indians who have played the stock market well, it identifies some of the more prominent investors and lesser-known investors. What most of them have in common is that they prefer to get in on a stock early on, betting on a company before it becomes famous. This investment is based on research and is not random. But other than this, nothing else appears to be common. Some invest for the long-term, some for the short term. Some believe in making big bets, some do not. The key takeaway here is that each person has a different approach to investing. What works for one person may not work for another person. With the sole exception of one young investor, the rest are seasoned people who have been investing in the stock market for decades together. You will have to find your own method of investing in order to stay ahead in the stock market. Be sure to perform adequate research that takes into account your current and possible future financial commitments. Also, take into account your personal risk appetite. This will help you understand which stocks might work out best for you.
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