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Raamdeo Agrawal's Investment Insights

Raamdeo Agrawal co-founded Motilal Oswal Financial Services with Motilal Oswal in Mumbai, India. Some of his most profitable early investments included buying Hero Honda shares in 1996 for Rs. 30 each and selling them in 2016 for Rs. 2600, buying Infosys shares in the mid-1990s and receiving over 12% returns, and buying Eicher Motors shares for Rs. 900 that reached Rs. 32,000 in 2017. Agrawal recommends investors limit their portfolios to 4-5 stocks and maintains a disciplined approach, once selling Berkshire Hathaway shares even though he admired Warren Buffett.

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546 views2 pages

Raamdeo Agrawal's Investment Insights

Raamdeo Agrawal co-founded Motilal Oswal Financial Services with Motilal Oswal in Mumbai, India. Some of his most profitable early investments included buying Hero Honda shares in 1996 for Rs. 30 each and selling them in 2016 for Rs. 2600, buying Infosys shares in the mid-1990s and receiving over 12% returns, and buying Eicher Motors shares for Rs. 900 that reached Rs. 32,000 in 2017. Agrawal recommends investors limit their portfolios to 4-5 stocks and maintains a disciplined approach, once selling Berkshire Hathaway shares even though he admired Warren Buffett.

Uploaded by

Aditya Singhal
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

RAMDEO AGGARWAL

EARLY DAYS OF INVESTING


Raamdeo Agrawal was born and raised in Raipur, Chhattisgarh. Being the child of a
farmer, he says that the only investment strategy his father knew was saving and
investing in his kids and their future. Raamdeo Agrawal moved to Mumbai to finish
his higher degrees.

Agrawal pursued chartered accountancy in Mumbai and started his profession as a


sub-broker in 1987. He managed to become a stockbroker by 1990 and also began
investing for himself in the stock market.

It was in Mumbai where he met his partner and closest colleague Motilal Oswal.
Their paths crossed while living in a similar hostel. Oswal portrayed Agrawal as an
exceptional scholar, eager for the organization's reports and balance sheet records.

Raamdeo Agrawal co-founded Motilal Oswal Financial Services with Motilal


Oswal, and today, his family possesses about 36% of the organization.

In 1986, he co-authored the book Corporate Numbers Game, alongside Ram K


Piparaiya.

Portfolio
Here are some of the most appreciated and beneficial historical speculations made
by Raamdeo Agrawal in the early stages of his profession:

 Hero Honda - Bought Hero Honda shares at Rs. 30 each in 1996 and sold it for Rs.
2600 in 2016. During this 20 year period, he also obtained a dividend of
approximately 600 per share.
 Infosys - He bought portions of Infosys in the mid-1990s, sold them and got returns
of over 12%. During this period of holding, he obtained consistent dividends and
bonuses from this stock.
 Eicher Motors - Bought shares of Eicher for Rs. 900, which reached Rs. 32,000 in
2017.

Raamdeo Agrawal suggests that for an investor's own motivation, they should put
the resources within a limit of 15 stocks. According to him, 15 stocks are excessive.
He would rather recommend 4-5 stocks. Investing in different stocks gives investors
the benefits of diversification.

However, of the total benefits of the investment, around 90-92% of the benefits are
claimed by the time the portfolio reaches 15. The benefits are slim after this.
An investor who wants to take advantage of the last 10% should invest in different
stocks. Eventually, it would reach a point where it can affect the quality of judgement.
This is because it would not encourage him to dig deep enough to learn about the
stock.

A disciplined approach to the portfolio

The control that Raamdeo holds over his portfolio is remarkable. When he saw that
the portions of Berkshire Hathaway no longer matched his portfolio channels, he
chose to sell them. This was regardless of his object of worship to which Warren
Buffet remained a contributor.

Current holdings of Raamdeo Agrawal

According to Raamdeo Agrawal, one must keep large portions of few stocks.

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