How did Radhakishan Damani become rich?

How Radhakishan Damani has generated incredible amount of wealth?

So, today we will talk about the Rakesh Jhunjhunwala mentor and a billionaire, Mr. Radhakishna Damani.

Initial life

Before investing in the stock market, Radhakishan Damani used to run a ball bearing business.

At first, he received profit through trade and by investing in MNC.

During the 90s, when Harshad Mehta ruled the stock market, Damani created wealth through short sales.

Short selling changes R.K Damani life forever

Those who don't know about short sales, let me tell you that in general, we first buy shares, then sell it.

Short sales are the opposite. In short sales, the first stock was sold and then bought.

In general, we know that as stock prices rise after buying it, then you get a profit.

However, in short sales, you get a profit when stock prices fall.

If you haven't watched our video at Harshad Mehta, then watch it so you can understand this topic even better.

So, if a trader feels that certain shares might fall, he chose for a short sale of the stock

Harshad Mehta’s time and ACC HIKE

At Harshad Mehta Scam, we learned how Harshad Mehta used bank money to manipulate the stock market

Harshad Mehta made a heavy purchase in several shares and took it to a higher price level.

In just a few months, Harshad took ACC's share price from the hospital. 200 to RS. 9000.

But the basics of stock did not justify their price increases even a little

Although there are changes to the company's fundamentals, their stock prices skyrocketed.

Observing the trade trading at a higher price, Mr. Damani was really surprised

He really knew that Harshad Mehta manipulated stock prices and that they would not last long to high judgment.

And so Harshad Mehta runs out of funds, the stock price will fall,

So, Radhakishan Daman began to be the best-selling with shares where Harshad Mehta invested.

While Harshad Mehta continued to buy shares, Radhakishan Damani, on the other hand, was selling short in the same stock.

But Radhkishan Damani did not know about the Harshad Mehta funds.

He did not know about Harshad Mehta's funding resources.

Harshad Mehta is extracting continuous funds from the bank and making heavy purchases in stock

Such stock prices soar continuously and don't seem to go down at any cost,

Because of this, Mr. Damani faces one or two major losses on the stock market, However, when Harshad Mehta scam was exposed, the stock became very large and Damani made a big profit from it and as a result, the net wealth increased mostly.

Also READ: Porinju Veliyath Portfolio, investing strategy, success story, latest portfolio 

Unique investing strategy

Only a few years later for this, investor value, Mr Chandrakant Sampat who managed to employ the investment method of value in investing in stock market.

Famous investments

Inspired by him, Radhakishan Damani shifted his focus on the investment method of value for long-term investment considering the recent events, he invested in Gati and TCI logistics companies - in early 2014

The investment method is worth the following, whenever the shares with strong fundamentals get bottom out. If it becomes available on a cheap assessment,

Mr. Damani used to buy it and went patient to hold it for the long term,

This is when these two shares are fundamentally strong and fully from the bottom,

And he got a significant return from both stocks,

Mr. Damani made the most of its profits through long-term investment.

R.K Damani as a trader

However, every time he gets a short-term opportunity, he must have traded,

In 2000 and 2001, when the parikh sticky rice appeared with fraud and made stock prices higher by manipulating them,

Even at that time, Mr. Damani managed to get a decent money using a short selling method

Mr. Radhakishan Damani bought many shares of VST Industries, in 2000, with the average price of Rs. 85.

And now this stock is trading at a outstanding premium of 3600.

Damani get some return on HDFC Bank, Gati, Dart Blue, Sundaram Finance, Gillette, Indian Cement and other shares

He prefers to hold his shares for 5 to 10 years.

Mr. Radhakishan Damani always has great interest in the consumer business,

He even invested in a consumer business company.

Setting up D Mart

Before establishing D Mart, he bought a Cooperative Shop Chain Franchise - Apna Bazaar in Nerul, Navi Mumbai

He must learn a lot about the retail business of the franchise

Then in 2002, he formed a retail-d mart chain

Is it a business or investment, Mr. Damani always thinks of the long-term,

At FY 2001-2002, the price of real plantation fell completely and Mr. Damani took the total advantage of it, Since then, Mr Damani began buying property for D Mart in a different place.

Why D mart successful?

At that time, he bought several properties in the outside of Thane and Navi Mumbai, Where property rates are quite cheap.

Think that, in the future, when Thane and Navi Mumbai will develop, these properties will come under the main area.

And today, D Mart shops are located in the main and most densely populated area of ​​the city

In this way the risk of relocation of stores has been fully mitigated and the rental costs are also stored.

This let Damani remain very profitable,

This way long-term thinking from Mr. Damani helps d mart a lot in growth

None of the D Mart Store, which is in any mall and most, D Mart has its own shop everywhere

This reduces expenditure costs and as a result, they can offer exceptional discounts to their customers

Mr. Damani follows its philosophy both in business and investment

And he doesn't give interests what people should say about it

When all investors really liked expansion, following the philosophy, Mr. Damani looked at Profitability D Mart instead,

He broke the template first and then he started the rapid expansion D Mart.

In the first 9 years D Mart .I.e until 2011, D Mart only has 25 stores,

And in the last 5-6 years, he opened more than 100 D D Mart's store with fast expansion,

Even if he has enough funds to open a new store, he doesn't open it until he assures that it will be profitable like an existing shop.

This is the reason why there is no D Mart shop closed today,

When the e-retail trend begins, retail experts will advise him to go e-commerce, But Mr. Damani concentrated fully on his brick and mortar model and continued to try it to make his business better

And the results are quite clear in front of you.

Today, D Mart is the most beneficial retail company India

Likewise, in 1995, when Mr. Damani was a big shareholder of HDFC Bank, several investors asked him,

Why do you consistently invest in stock HDFC banks while many other banks and shares are available with cheap ratings on the market

After several years, the shares become multi-baggers

In the end, investors got answers to their questions,

Important points-

At the very end there are some points that everyone should follow from Mr R.K Damani:

Likewise, Mr. Damani always follows the philosophy

  • Mr. Radhakishan Damani, he was not highly educated and was not included in highly educated families
  • He is a college shift. After completing B. COM first year from Mumbai University, he left college
  • Even though it did not have a formal degree, he was still known as one of the most successful investors in India
  • And he is one of the main Indian entrepreneurs
  • He proved that determination and passion were more important than qualifications
  • Mr. Damani also made mistakes like other investors
  • While analyzing the company and stock, he learned how the ideal business must be visible
  • Stock market investors should find a high-performance business
  • But Mr. Radhakishan Damani, along with finding a good business, showing how to do good business
  • This not only produces wealth only for him but also for other investors
  • He said that he had learned a lot of things in life just by investing
  • Even though it manages an extraordinary business, he still gives time to invest
  • Mr. Rakhesh Jhunjhunwala - The most successful investor in India said that
  • "If he doesn't have his father and Mr. Radhakishan Damani by his side to advise him
  • Then I won't be so successful "
  • Good Mr. Damani and Rakesh Jhujhunwala holds investment in companies such as Aptech Ltd and Crisil Ltd
  • Mr. Radhakishan Damani remains quite simple and always wears a white shirt and white trousers
  • And therefore, he is also known as Mr. White & White
  • Mr. Damani prefers to away from media and public events,
  • He will definitely stay away from the media, but his actions speak harder than words.
  • Mr. Damani works calmly but his success speaks everything.
  • You can learn so many and things like Mr. Damani, which you rarely find in any book
  • Many people, instead of learning from such successful investors, more focused on the purchase of shares that have been purchased by this investor
  • According to Forbes, in July 2017, the net worth of Radhakishan Damani and his family was $ 7.7 billion (RS. 50,000 crores)
  • and he was still among one of Indian richest people
  • Radhakishan Damani is also a generous and contributing, he prefers to keep his name secret

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