Rome wasn’t built in a day – is what most successful investors, brokers and traders will tell you as their pet investment philosophy. So it doesn’t come as a surprise when the likes of Raamdeo Agrawal, joint MD of Motilal Oswal Financial Services or Manish Chokhani, Director Of Enam Holdings tell you that when you spot a great investment opportunity, put your money in it, stick to your conviction despite what others might tell you and hold on to it for dear life.
But digging deep, there are many other philosophies and theories that these great minds swear by. For Agrawal it is the power of value migration. He says huge value migration is already underway and the next value migration is happening in globalization of generics.
One of his best investment decisions is bet Hero Honda. He adds it is a classic example of value migration – in the 1980-90s, it was all about scooters and he spotted a great story in the motorcycles segment and believed that the combined capacity of Hero and Honda would be unbeatable by anyone. His investment continues to pay him rich dividends till date.
He says one of his worse decisions was to sell HDFC Bank.
Manish Chokhani, director of Enam Holdings believes it is important to spot them young. He says equity is about rate of change and young people create change. According to him, it is less about the sector and more about the company or the person running the show. Typically, CEOs in their 40s are the people to bet on, they have the enthusiasm and energy of the 30s and the wisdom of the 50s.
Chokhani also has an interesting Holi-Diwali philosophy. According to him, there are all those stocks which are meant to be bought cheap and then sold off – buy in Diwali and sell by Holi or vice-versa.
Another big name to reckon with, Ramesh Damani, member of the Bombay Stock Exchange says it is important to make the right investment decisions and then be patient and let them pay you rich dividends. Staying power is one of the most important things, according to him. He adds great businesses will go through periods or cycles, but investors need to sit it out.
Damani believes there is still huge opportunity to earn healthy returns from equities. He adds that investor needs to think like he/she owns the company. He says Warren Buffett had once famously said that believe that you are buying a piece of the business, believe you are the owner of the business. He adds that wealth is created by people who sit it through.
Madhu Kela, Chief Investment Strategist at Reliance Capital says if you (investor) really identify a theme or individual who is really very passionate, then success is just round the corner – bet on the theme or the person. One of his greatest decisions was to invest in Divi’s Lab. At the time of listing, the company’s market cap was Rs 140 crore and it is now Rs 2400 crore.
Kela says one of the most difficult things in the stock market is to digest profit.
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