Raamdeo Agrawal is one of the prominent stock traders in the Indian share market. And if you are also in the share market for a long time, then you may have heard about him on new channels and financial news sites. He is one of the sensible and highly recognized investors. Today, in this article, we will reveal some crucial information about his success. So, if you are also willing to know about Raamdeo Agrawal’s success story, then read this entire post.
Who is Raamdeo Agrawal?
Raamdeo Agrawal is the son of a farmer and belongs to Raipur, Chattisgarh. And as he belongs to a farmer’s family, he had an idea about saving and investing money in kids. But when he went to Mumbai to complete higher education, he also completed the Chartered Accountant course.
And after some time, he met his associate and current business partner, Mr. Motilal Oswal. As per Mr. Oswal, Mr. Raamdeo was a very bookish person who loved to read the company’s books, including reports and balance sheets.
How Raamdeo Agrawal Started Investing in Share Market?
Both Raamdeo and Motilal are interested in the Indian share market, and both wanted to do some wealth maximization. In 1987 they became sub-brokers in the Bombay Stock Exchange, and Raamdeo became sub-broker in 1990. He also started investing in the share market on his behalf, and by doing it, he made an Rs10,00,000 Portfolio. He stayed away during the time of the Harshad Mehta Scam and before the investment value reached 30 crores. However, when the breakout happened, the value of his portfolio dropped to 10 crores.
After this, he planned his way of trading and updated the scenarios to make better investment decisions. To understand the share market and trading approaches, he went to the US to attend a meeting of Berkshire and Warren Buffet in 1994. Everything changed from this meeting, and he decreased his investment portfolio from 225 stocks to only 15 stocks. As he knew in the share market, quality stock matters, not quantity. In this way, he updated his investment strategy. And he created a portfolio of Rs100 crores with these 15 stocks only. And in 2018, he became a billionaire and was mentioned in the list of Forbes.
Also Read: Rakesh Jhunjhunwala Success Story
What Strategy Does Raamdeo Agrawal Use in Share Market?
Raamdeo Used a disciplined way of trading in the stock market to build wealth. Here is some strategy which he used and maximized his portfolio.
1. Wait For The Right Time to Get The Maximum Return
As per Raamdeo, the more you give time to stock, the more return you get. And the same we can see in his trading journey as he started with zero in 1987 and by 1990 he earned crores of rupees. His partner did not have good wealth due to the Harshad Mehta scam, but they waited for years and again achieved a 30 crores milestone with their persistence.
2. Investing Money in Which You Have An Idea
Another strategy Mr. Agrawal used in his trading career is investing in that share related to your field of expertise. If you understand the telecom industry, then invest in that because here, you can make better trading decisions. Having an understanding of business can help to plan investment strategies following that fruitful opportunity.
3. Long Term Investment for More Return
Short-term trading can be profitable, but as per Agrawal, investing in long-term investment schemes can bring a multiplied return. And he also suggests only the excess fund you have for investment and sell to those desperate shares to meet the requirement for long-term investment.
So, Mr. Raamdeo Agrawal’s trading strategy includes:
- Waiting for the right time,
- Investing in the field of expertise, and
- Choosing a long-term investment.
Portfolio of Raamdeo Agrawal
Raamdeo Agrawal has invested in many profitable stocks. Below are some of them which you should look at.
Infosys: Mr. Agrawal has shares of Infosys, which he purchased in mid of the 90s and sold around 12 times to earn profit. But still, he holds a good number of shares of Infosys and gets bonuses and dividends from the same company.
Hero Honda: He purchased the shares of Hero Honda in 1996 for Rs30, but now these shares sell nearly Rs2800. And during these years, he also earned dividends per share, which accumulated around Rs600 per share.
Eicher Motors: It is also one of the profitable investments of Raamdeo, which he purchased at Rs 900, and now it cost nearly Rs2800 per share.
Raamdeo has invested in many other companies and generated a good return. However, they suggest another trader decide as per their analytical skills and limit the total number of shares to 15 stocks. Although, having 4 to 5 good stocks are more than sufficient to generate sustainable income from the stock market. But you can try to maintain your portfolio sturdy by performing a disciplined way of trading.
What skill made Raamdeo Agrawal a successful stock trader in share market?
Many skills helped Raamdeo to become a successful investor in the share market. And he mainly uses the QGLP formula as his crucial tool.
Quality is essential in the share market, as if you have fewer shares, you can focus more on those. And it will help you to control the risk and maintain your portfolio clean from unnecessary stocks. For example, They purchased the stocks of Financial Technologies (India) Ltd for Rs1150. However, he had to sell its shares at Rs150 only. So, keep your number of stocks less and invest in companies with honest, sound, and transparent management.
Growth is also essential and should invest in that company which is growing and can give maximum profit with less cost.
You need to invest for the long term as many ups and downs come in the market, and it can significantly cause the price of the shares. Many traders understand this scenario and look to invest in long-term shares. It gives stability and enough time to make better decisions.
The price of the stock is another key to becoming a successful trader in the stock market. You need to understand what stock of the company is worth and what it can be its future price as per the company’s growth. So spend for the value you get as it will give you the value you want.
What Should You Learn From Raamdeo Agrawal?
If you want to learn something from Raamdeo Agrawal, then you should learn to be consistent. You also need to invest in those shares which you know about. Along with this, you can also learn fearlessness, patience, and tolerance from Mr. Agrawal.
Raamdeo Agrawal’s story is full of inspiration and motivation for the upcoming investor of the stock market. His journey tells us we need to be patient and wait for the right opportunity to get maximum return. In this article, we learned the success story of Raamdeo Agrawal. Here we discussed the background of Mr. Agrawal, his investment journey, and the skills which take him to success. Thus, I hope you liked this Raamdeo Agrawal Success Story and are ready to learn about more success stories of other inspirational investors of the share market