In one of the recent interviews, CA Raamdeo Agrawal (Chairman, Motilal Oswal Group) shared his 35 years of journey from 0 to Rs. 2,200 cr. in the stock market.
(Please note that his all investments are in mutual funds and he does not hold equity shares of any company – apart from his ownership in his company ‘Motilal Oswal’). Some key points mentioned by him for investors are as follows:
1. Always believe in the POWER OF COMPOUNDING.
2. Do not over diversify your portfolio. If investing in direct equities, 15-20 stocks are more than enough.
3. Do not mix trading and investing portfolios. Raamdeo Agrawal has NEVER traded in FUTURES/OPTIONS in his life.
4. Stock market indexes do not move in a straight line. It’s a combination of ups and downs.
5. Believe in India’s growth story.
6. It’s almost impossible for most of the investors to beat NIFTY. So, invest in good mutual funds and let the fund manager do the job and work hard in your professional life to earn active income.
7. Money is not made in the stock market because of intelligence but because of PATIENCE.
