Raamdeo Agrawal is a well-known name in the stock market. He is a successful investor and the Co-Founder and Chairperson of the Motilal Oswal Financial Services. He is a chartered accountant by qualification and has a keen interest in studying balance sheets and understanding businesses.
Raamdeo Agrawal has a current net worth of over Rs. 4,400. His investment philosophy is highly popular among investors in the Indian stock market. So, what is the Raamdeo Agrawal investment strategy? Read on to know the market veteran’s suggestions for appreciating your stock market portfolio.
A Sneak Peek Into Raamdeo Agrawal Investment Strategy
Below, we have discussed the top 5 investment lessons from the famous Raamdeo Agrawal investment strategy that can help you earn profitable returns from the stock market –
1. Invest in Those Businesses Which You Understand
He propagates that it is essential to know the kind of business you are investing in. When you understand the nuances of a specific industry, you can accurately predict its future outcomes and growth potential. This way, you can do away with being surrounded by uncertainty.
2. Value Investing
Raamdeo Agrawal believes in the power of value investing. It means investing in those stocks which are currently available at a price lower than their actual intrinsic value. The underpriced stocks, which you think have the potential of being priced way more than their current price. To identify these stocks, look for high earnings per share (EPS) and high expected growth rates.
3. Invest for Long-term
Raamdeo Agrawal Investment Strategy says you should invest in the long-term. It takes time for even quality stocks to realise their full potential. Moreover, you can also keep your market risk at lower levels by spanning them on a longer interval.
4. Invest Only in Quality Stocks
According to the market veteran, you should weigh a stock on four key parameters, namely quality, longevity, growth, and price, before investing in it. Also, keep track of the company’s leadership, how they reach government policies or what are their plans, and do your research well. Invest in stocks of companies that enjoy a good and honest reputation due to their transparent and competent management.
5. Wait for Your Returns
The ace investor believes that patience is the key to success in the stock market. Only with time do you learn and understand how to time the market, when to use which strategy, and things like that. Don’t panic and exit the market as soon as you see a dip in your portfolio value; stay invested and wait for your returns.
These investment lessons are just a few chapters from the book of success of the market legend Raamdeo Agrawal who has been investing in the stock market for over three decades now. Pick the ones that match your style of investment and risk appetite the best, and use them on an investment platform when the time is right!