"Raamdeo Agrawal: A Symphony of Financial Mastery"
A Humble Beginning
In the bustling corridors of Mumbai's financial district, amidst the frenetic energy of the stock exchange, there exists a figure whose presence commands respect and admiration – Raamdeo Agrawal. With a keen intellect and an unwavering dedication to his craft, Agrawal has carved a niche for himself as a titan of the investment world, his name synonymous with wealth creation and financial acumen.
Early Challenges and Determination:
Born
into a middle-class Marwari family in the vibrant city of Raipur,
Chhattisgarh
Agrawal's journey to prominence was not predestined. Raised amidst modest
surroundings, he imbibed the values of hard work and perseverance from an early
age. It was these very values that would come to define his illustrious career
in the years to come. Raamdeo Agrawal’s father doing his traditional farming
business from which he earns money which hardly make up his basic family need.
There was no any another earning source in his family.
A Fortuitous Encounter:
Agrawal's
foray into the world of finance began with humble beginnings. He came to Mumbai
to take coaching in CA and exploring world. Armed with a degree in Chartered
Accountancy from the Institute of Chartered Accountants of India, he wants to
create something own. Then he got interest in reading balance sheet of various
companies. Daily he reads many balance sheets of various companies and do
analysis on this. Slowly, he got interest in stock market. Then he started to
learn many things about stock market, then he decided to do career in stock market
but biggest problem in front of him was lack of money, so he was in search of
opportunity.
Biography / Journey of Investor Raamdeo Agrawal
The Genesis of Motilal Oswal:
One day, he met with Motilal Oswal, in
discussion with him, he got to know that Motilal Oswal’s brother is looking for
good stock broker and from there only he embarked on his professional journey
as a sub-broker in 1987. Little did he know that this would mark the beginning
of a remarkable odyssey that would shape the course of Indian finance.
It was in the crucible of Mumbai's bustling financial markets that Agrawal forged his partnership with Motilal Oswal, a fellow visionary with whom he shared a common vision of revolutionizing the investment landscape. Together, they laid the foundation for what would eventually become the Motilal Oswal Group, a powerhouse in the world of financial services. And they started to provide good services to customers.
Weathering the Storm:
In 1990, Raamdeo Agrawal, understood the power of investing and he started to invest in stock market. By the time he earned 15-20 lakhs and he put all money in stock market. But luckily that was Harshad Mehta’s bull era, within 2 years he made 30 crores from 20 lakhs. Those 2 years were golden period for Raamdeo Agrawal.
But their journey was not without its challenges. In the aftermath of the Harshad Mehta scam of the 1990s, Agrawal's portfolio took a hit, dwindling from its peak to a fraction of its former glory. Then he understood, where he made mistake inselection of stocks and in 1994 after undeterred by setbacks, he embarked on a pilgrimage to the United States, seeking inspiration from none other than his idol, Warren Buffett. It was here, amidst the hallowed halls of Berkshire Hathaway, that Agrawal gleaned invaluable insights into the art of value investing, laying the groundwork for his future success.
Redefining Investment Strategy:
Armed
with a newfound sense of purpose and clarity, Agrawal returned to India, armed
with a radically transformed investment philosophy. Gone were the days of
unwieldy portfolios and speculative bets – Agrawal streamlined his holdings to
just 15 stocks, focusing on quality over quantity. Before this, Agrawal having
more than 225 stocks in their portfolio but after his redefining investment
strategy he sold out all those stocks and focused fully on quality stocks. This
shift in strategy would prove to be a masterstroke, catapulting his portfolio
to new heights and establishing him as a force to be reckoned with in the world
of finance.
After lot of learning and hardcore
research, Raamdeo Agrawal developed his strategy of investing. He follows
golden “ QGLP Strategy”
Where
Q
stands for to check Quality business and management
G
stands for to check Growth of profit
L
stands for Longevity means Quality of business and management & growth of profit will continue for
longer period of time
P
stands for Price. It should be at reasonable price to buy
If any
one of pillar not satisfies the condition then they ignore this company.
Agrwal thinks, this four pillar are must
and play’s vital role in company’s growth. Then he invested single money by
proper analysis and hardcore research. He gave two beautiful advices that each
one should remember, Do not speculate and second is Never invest from borrowed
money.
Achieving Financial Success
He
invested in many companies which became multibeggar for him over a period of
time. In which, he bought Hero Honda shares in 1996 at 30 Rs and sold out in
2016 for Rs 2600. Eicher Motors shares bought at Rs 900 and sold out to 32000 ,
Infosys bought at 900 and sold at 11000.Also he bought shares which over period
of time becomes multibeggar for him like Ajanta Phrama, VYSYA Bank. Also in
Financial technologies shares he made huge loss, he bought per share at Rs 1050
and sold at 150 Rs. In one interview, he explained that he did not analyze the
company’s management properly and eventually company’s management did
corruption which results massive fall in share price. According to Raamdeo
Agrawal, which stocks not to buy is more important than which stocks to buy.
After reforming his investment strategy, he
invested in only 15 selective, quality stocks. At that time, his portfolio
around 25 crores then within less than year his portfolio becomes 100 crores in
2001. But after this again in 2003, due to bear run his portfolio comes to 30
crores but he never sold out single share because he had faith on this
companies. And after that bear run, again his portfolio took pace. In 2008,
Raamdeo Agrawal started Asset Management Company which manages portfolio of
wealthy peoples. In 2013, he started Housing Finance Business which grown
rapidly over period of time.
Contributions Beyond Finance:
Agrawal's influence extended far beyond the realm of personal wealth creation. Recognizing the power of knowledge sharing, he authored several seminal works, including the acclaimed "Corporate Numbers Game" and "The Art of Wealth Creation." These books served as guiding beacons for aspiring investors, offering them practical wisdom gleaned from Agrawal's years of experience in the markets.
A Champion of Integrity:
Throughout
his career, Agrawal remained steadfast in his commitment to integrity and
ethical conduct. His unwavering adherence to the highest standards of
transparency earned him the admiration of his peers and the trust of his
clients. It was this unwavering integrity that earned him the prestigious
Rashtriya Samman Patra from the Central Board of Direct Taxes, a rare honor
reserved for those who exemplify the highest ideals of ethical conduct.
In Conversation with a Visionary:
In a candid conversation with Agrawal, one is struck by his optimism and foresight. His bullish outlook on the Indian stock market is rooted in a deep understanding of economic fundamentals and market dynamics. As he articulates his vision for the future, one cannot help but be captivated by his conviction and passion for India's potential
His belief in India's resurgence as the 'sone ki chidiya' – the golden bird – is not merely rhetoric but a reflection of his unwavering faith in the country's intrinsic strengths. As he envisions a future where corporate profits soar and technological advancements drive economic growth, one cannot help but share in his optimism for the road ahead.
A Legacy of Excellence:
As Agrawal reflects on his journey, one thing becomes abundantly clear – his legacy is not measured in wealth or accolades but in the lives he has touched and the values he has upheld. For Agrawal, true success lies not in personal gain but in the impact one has on others.
As he
continues to chart new frontiers and inspire future generations of investors,
Agrawal's legacy will endure as a testament to the power of vision, integrity,
and unwavering determination. In a world where financial markets are often
viewed with skepticism and mistrust, Agrawal stands as a shining example of
what is possible when one approaches investing with honesty, humility, and a
genuine desire to create value for all.
