There have been many successful long term investors in share market in India. While some have multiplied their wealth with long term investing in share market in India, some have simply created fortunes.
Let’s take a look at three of the most successful and famous long term investors in share market in India.
Chandrakant Sampat is known as a pioneer of value investing in share market in India. He started investing in the share market in India in the late 60’s and strongly believed that the best way to invest is by identifying great businesses and to remain invested in them to let power of compounding create wealth.
He preferred investing in companies producing consumer goods as he believed that their products will always remain in demand. Some of his early investments include stocks of Hindustan Unilever, Gillette and Nestle which held onto for several decades.
While choosing any business for investment, he would look for three main criteria’s such as minimum capital expenditure, minimum 25 percent return on capital employed (RoCE), and a good track record of dividend payouts.
Radhakishan Damani is a self-made billionaire and owner of the country’s retail chain, ‘DMart.’ He considers Chandrakant Sampat as his mentor and started investing in the stock market in the 80’s.
He built his fortune by investing heavily in stocks of multinational companies, during the late-80s and early-90s. Though initially started off with trading in the share market in India, he gradually transformed himself into a value Investor. Like his mentor Chandrakant Sampat, Radhakishan Damani too believed that consumer stocks were best investments for wealth creation. This explains his long term investments in consumer goods stocks like Gillette and VST Industries.
Famously known as Mr. White and White, due to his penchant for dressing in white clothes, he maintains a low profile and prefers to stay away from the glare of the media.
Often referred to as India’s Warren Buffett, Rakesh Jhunjhunwala is one of the most successful and admired investors in the share markets in India. He started investing in share market in India while he was still in college. His investing journey in share market in India, started when he heard his father discussing stocks with some friends one day.
He began investing with in 1985 with a capital of just Rs. 5000 and as of 2018 his net worth stood at over Rs 19,000 crores. He earned his first big profit of 5 lacs from the share market in India in 1986 when bought 5000 shares of Tata Tea Company, for 43 rupees per share, and sold it after three months only at the rate of Rs 143 per share.
His success formula can be summarized in his favourite quote “Buy Right and Hold Tight” which means buying the right stock and holding it for long. Some of his long term investments where he made huge returns include Titan and VIP Industries.