Did you ever ask yourself that what is the best approach towards investing or earning from the Stock market?
Is there any best approach or there isn’t?
Some people earn huge profits and income from a very small capital involved and some people fail and blow their accounts with also a huge sum of capital.
Some people buy stocks and some of the people short the stock, some people buy options and some people write options.
The thing with the stock market is there is not a particular approach that can be considered the best, all of them have their pros and cons.
Some people are solely devoted to the fundamental side of the analysis of any stock denying that the technicals mean nothing and then some people are solely dependent on the technicals and charting blindly following the philosophy of “Bhav Bhagwan Chey”.
Both the categories fail and both of their wins, but there is one approach that I have found to be the best, not for earning income but to build wealth.
I am not considering the daily profits or the capital double philosophy. I am here to talk about the “Value investing” approach which can never go wrong in the longer term and was first introduced by the Guru himself Mr. Warrent Buffet, in this approach you cannot expect daily profits and monthly incomes but can guarantee generational wealth if done the right way.
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Let’s look at one of the greatest personalities and the follower of this value investing approach who tried both and stuck to this becoming one of the richest investors of India Mr. Ramesh Damani with an appreciable net worth and is an MBA graduate from the University of California who turned into a fulltime investor.
We will dive deeper into his early life and will also try to take a look at his current holdings and his huge net worth.
Ramesh Damani Wiki
Ramesh Damani or Ramesh Srichand Damani is the owner and fund manager of Ramesh S Damani Finance Pvt. Ltd. He is a California State University MBA graduate but decided to dwell in the stock market of India due to some very interesting turn of events which we will be discussing in detail in the latter part of the article.
Ramesh S Damani belonged to a well-to-do family and his father indulged in the same stock market activities only and was a successful trader and investor.
His father was into trading and the stock market professionally and was generating a good income.
Ramesh completed his graduation from HR college of Mumbai with a bachelor’s degree in Commerce and for his higher education, he moved to the states and earned an MBA degree from the State University of California.
He was the only child in his family so, naturally, his father and mother were very attached to him and wanted him to come back to India and get into the same stock market business with his father but, he was not very interested in joining him in his endeavor.
So, after nagging for a while his father decided to play a trump card by giving Ramesh 10000 US dollars and asked him to use this money and do investment activities, and if in the end, he could double this money then it will all his to keep but, if not then no other questions would be asked. So, that was Rameshs first kick that he thought how hard it could be for him to double this amount when especially there is no deadline.
Unfortunately, as the tradition goes with all the novice traders, he lost all of the 10000 US dollars in a mere 6 months span, and as promised no questions were asked by his father.
This incident shook him and he was adamant that how an MBA graduate from California university could do this and lose all the investment in a mere 6 months and which in turn made him come back to India and work with his father.
In the bull run of the Harshad Mehta period, he generated very good profits as a registered BSE broker for his clients but himself only got to keep a small commission.
In the year 1994 he started investing unlike his father who was a trader and sold his holding as soon the price hiked, he practiced value investing following the guidelines of the guru himself Mr. Warren Buffet. He looked for strong companies with good fundamentals and by learning from his mistakes from his 10000USD loss in which he only bought dirt cheap companies and expected them to hike and give good returns. He learned a few things that
If a company is available for cheap that does not mean it won’t get any cheaper and The reason for selling a stock should never be the price hike because it doesn’t mean that the price won’t go even higher.
In one of his interviews, he said “His father always sold the stock when the price of the particular stock got doubled” and that generated very good income for the family but did not generate any kind of generational wealth, which he gained a major in and generated 100crores from 10lakhs.
Ramesh’s first value investing was an arbitrage trade for the company Infosys which got listed in India in 2003 and almost 100xed his investment.
Let us look at some of his personal present holdings
Goldiam International limited
Garden reach ship builders and engineers
Godrej industries
It is never advisable to copy other investors holdings and also if you are keen to do so then please do your own research before investing as these are public data and can change at any moment of time as or whenever he withdraws or sell his stakes from any company leaving your portfolio with a dent. It is always advisable to learn or inspire from the choices not copy it as it is, this will always hurt you and your trading career in the long run.
Ramesh Damani Net Worth
The total net worth which comes down from the public holdings is almost around 200 crores and is subject to vary with the market price of the stock holdings. It is not always a particular approach that makes you money in the stock market but, the right fit which suits your personality type and remembers the value investing approach never goes against you until or unless you don’t do your research well with both the fundamentals and technicals of a company.
