How Ordinary People Found Success in Stock Market?
Created on 25 Jan 2024
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According to Bloomberg’s Global Wealth Blueprint, 72% of wealthy people profit from the stock market. The market has always allowed individuals to realize their dreams of wealth.
Contrary to the belief that stock market success is only for a chosen few, the truth is that anyone with the right mindset and determination can find success.
In this article, we will explore the inspiring stories of 4 entrepreneurs who started with very little but went on to make fortunes in the stock market.
These stories prove that you can achieve financial prosperity with hard work and a desire to learn no matter who you are.
Raamdeo Agrawal: Mastering Success Through Discipline!
Raamdeo Agrawal is renowned for co-founding Motilal Oswal Financial Services, where his family currently holds approximately 27% of the company's shares.
Mr Agrawal was born into a farming family in Raipur, Chhattisgarh. Upon relocating to Mumbai for higher education, Agrawal pursued chartered accountancy, eventually transitioning into a stockbroker role in 1990.
He crossed paths with Motilal Oswal, his future business partner, and they founded Motilal Oswal Financial Services. Agrawal's success comes from:
- Disciplined investing
- Patience in his approach
- Deeply understanding the businesses he invests in
- Belief in a long-term investment perspective
Vijay Kedia: Small Broker, Big Portfolio!
Vijay Kedia, an Indian investor and the founder and CEO of Kedia Securities Pvt. Ltd., grew up in a small stockbroker family in Kolkata. Despite lacking knowledge about the stock market, he started investing at 18 to support his family after his father's death.
Initially facing significant losses, Kedia moved to Mumbai for better opportunities. Despite financial challenges, he saved money, learned from others, and developed successful investment strategies.
2004-2005, Kedia invested in seemingly worthless companies like Aegis Logistics, Cera Sanitaryware, and Atul Auto.
Over the next decade, the value of these investments increased over 100 times, leading to his success. Starting with ₹35,000, Kedia's portfolio is now estimated to be over ₹1,200 crore. His journey highlights the power of perseverance and learning from failures.
Porinju Veliyath: The Art of Picking Prestigious Value Stocks
Porinju Veliyath, a Kochi-based investor and fund manager, founded Equity Intelligence India Pvt. Ltd.
Born on 6 June 1962 in a middle-class family, he faced financial difficulties during his teenage years, leading to the sale of their house to repay loans. Determined to support his family, he took on various jobs while studying, starting with a role as an accountant, earning ₹1000.
Despite obtaining a law degree, he struggled to find a well-paying job. In 1990, he moved to Mumbai, where he began his career as a floor trader at Kotak Securities. He became a professional trader after gaining valuable insights into the financial world.
In 1994, he transitioned to a fund manager and research analyst role at Parag Parikh Securities, staying for 5 years before returning to Kochi in 1999.
He leveraged his stock market knowledge in Kochi, successfully investing in Geojit Financial Services and Shreyas Shipping. These profitable ventures led to the founding of Equity Intelligence India Pvt. Ltd. in 2002, managing both investors' portfolios and Veliyath's own.
Veliyath's investment strategy:
- No hesitation to invest in lesser-known firms
- Emphasising stable businesses, not market capitalisation
- Following a Value Investing approach akin to Warren Buffett
- Selecting undervalued stocks for potentially profitable returns
Ashish Dhawan: A Journey from Wall Street to Philanthropy
Ashish Dhawan, born on 10 March 1969 in New Delhi, India, was a bright student who dreamed of contributing to his nation. After excelling at St. Xavier's Collegiate School, he graduated with honours from Yale University and later earned an MBA from Harvard Business School. At 30, he became an entrepreneur, and at 45, he dedicated himself to social activism.
Beginning his career in 1992 as the sole Indian analyst at Wasserstein Perella & Co., a Wall Street investment bank, Dhawan later worked in private equity in California and at Goldman Sachs in New York.
Returning to India in 1999, he co-founded ChrysCapital, which grew into one of India's leading equity funds under his guidance.
In 2010, Dhawan co-founded the Young India Fellowship, and in 2012, he started the Central Square Foundation to improve education for disadvantaged children. In 2014, he founded Ashoka University, India's first liberal arts university.
Ashish Dhawan attributes his investment success to a well-thought-out and researched approach. One key strategy he advocates is smart and diversified investing for favorable returns.
During the Dot Com crash, despite losses in telecom companies, Dhawan's diversified portfolio earned him six times more returns on SpectraMind, helping him survive the market downturn.
ChrysCapital, under Dhawan's guidance, achieved significant profits by investing in various companies, including Axis Bank, Yes Bank, Shriram Transport Finance, Global Vantedge, TechTeam, Gammon, and IVRCL.
Market analysis is another crucial element in Dhawan's investment strategy. Before committing to a business, investors should thoroughly assess market profits and potential risks. Dhawan experienced losses in Allsec Technologies, Orient Green Power, and Mastek due to insufficient consideration of associated risks.
Dhawan emphasizes the importance of long-term investments to navigate market fluctuations successfully.
Despite a drop in Mphasis share prices from ₹350 to ₹50 in 2001, Dhawan's commitment to long-term holdings resulted in a fivefold return on investment. He encourages investors to withstand market instability and stay invested for extended periods to achieve higher returns.
Lessons from These Inspiring Stories
The stories we just read offer valuable lessons for aspiring entrepreneurs and investors. Here are some key takeaways:
1. Perseverance and Resilience
All these individuals faced significant challenges and setbacks on their path to success. They encountered failures, financial difficulties, and criticism but never gave up. Their ability to persevere through tough times and continue working towards their goals ultimately led to triumphs.
2. Thirst for Knowledge and Continuous Learning
Each entrepreneur recognised the importance of acquiring knowledge about the stock market. They sought expert guidance, learned from their experiences, and continuously updated their investment strategies. Their commitment to learning helped them make informed decisions and identify lucrative opportunities.
3. Patience and Long-Term Thinking
The success achieved by these entrepreneurs did not happen overnight. Realising substantial gains took years of patience and a long-term investment approach. They understood the value of holding onto their investments and allowing them to appreciate over time.
4. Courage to Take Calculated Risks
These individuals were not afraid to take risks. They invested in companies that others considered worthless or made bold trading moves. However, their risks were calculated and backed by thorough research and analysis. Their courage to step outside their comfort zones and seize opportunities set them apart from the crowd.
The Bottom Line
The inspiring stories demonstrate that success in the stock market is attainable for anyone with determination, a thirst for knowledge, and the courage to persevere.
These entrepreneurs started with humble beginnings but built significant wealth through their investments.
Their stories remind us that the key to success lies within ourselves- the willingness to learn, the ability to adapt, and the determination to never give up.
So, if you dream of making it big in the stock market, take inspiration from these stories and start your journey toward financial success today.
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