Radhakisan Damani is a well-known name of the Indian Stock Market and is widely regarded for his near perfect investing decisions. Popularly known as Mr. White and White, Damani is one of the most successful stock market investors of the country. He is often considered to be the mentor of Rakesh Jhunjhunwala, a name which needs to introduction. As per the 2015’s list of 100 richest Indians compiled by Forbes, Radhakisan Damani was placed at the 98th position with a net worth value of $ 1.15 Billion!
Damani is someone who is known to purchase stocks at extremely low prices and hold on to them for a very long term. In most of the occasions, he picks up stocks which other investors avoids buying. He holds the potential to assess the future of a stock right from the day it is launched. Probably, this quality makes him different from the other investors of the country.
Radhakisan Damani keeps himself low profile in media, and, very little is known about the man. Unlike other Indian investors who love to flaunt their wealth and give stock market tips on television, he prefers to stay away from the limelight. He shot to fame in the early 1990s when most of the investors lost their money after the Harshad Mehta scam broke out, Damani managed to maintain his good run in the stock market.
Entering the Stock Market
The amazing part of Radhakisan Damani’s story is he never had intentions to invest in the stock market and make a career out of it. He started his career as a trader of ball bearings and was quite happy with what he was doing. However, after his father’s death, he decided to enter their family business of stock broking which his brother was taking care off. He was 32 then, and, had no idea on the functioning of the stock market. In the initial phases, he started with observing the movements of stocks. After gaining substantial knowledge on stocks, he decided to start investing. He followed the ideology of legendary value investor Chandrakant Sampat and started with long term investments.
Investing for long terms is Radhakisan Damani’s philosophy
Investing for long terms, say 5 to 10 years, further strengthened Damani’s understanding of stocks. It was helping him to figure out the future potential of the stocks. As days progressed, his perception too began getting perfect. During the late eighties and early nineties, Damani started picking up stocks of Multinational Companies at dirt cheap prices. Some of the companies were not even so grand as they are at present. It was Damani’s long term vision which helped him built his fortune out of such stocks. In a few years time, he established himself as a successful investor of the Dalal Street.
The Harshad Mehta scam broke out in the early nineties following which most of the investors lost their money. Some of the high valued investors even turned their faces from the stock market. Radhakisan Damani, on the other hand, emerged out as a winner even in such circumstances.
Investing in VST Industries
Investing in tobacco manufacturing company VST Industries Ltd. in 2000 is one of the finest decisions Damani ever took. He bought VST Industries’ shares worth Rs. 63 crore and most of them were purchased at different phases at prices between Rs.80 and Rs. 150 per share. Presently (as on May 04, 2016), the shares are trading at a price of around Rs. 1710. The total value of his investment in VST Industries has already appreciated more than 15 times!
Radhakisan Damani at different times invested in Samtel Ltd., 3M India, Somany Ceramics, Jay Shree Tea, Schlafhorst, etc. which remained quite successful.
In 2001, Damani entered the retail industry space and founded D-Mart. It is a chain of hypermarkets and supermarkets which offers a one-stop shopping destination for all the household needs of a family. He stopped further investing in stocks since 2001 to concentrate more on his retail business. Radhakisan Damani returned to the stock market in 2007 with the same efficiency!