Phone Operator from Rs.1000 to Rs.187,00,00,000 | Stock market investor | Stock market for beginners

Summary

In this inspiring video, Bharat Shankar introduces Paranjoy Velliath, a self-made Indian investor renowned for his success in small and mid-cap stocks. Despite early life struggles and a lack of formal finance education, Velliath's common-sense approach to investing led him to wealth. He emphasizes the importance of value investing, focusing on undervalued stocks with strong fundamentals. His strategy, which includes investing in companies facing temporary troubles, has resulted in significant returns and a CAGR of 33% for his portfolio management firm, Equity Intelligence. The video concludes with lessons on continuous learning, simplifying investment decisions, and finding a personal investment strategy.

Takeaways

• 😀 Investing in the stock market does not necessarily require a finance background or advanced degrees like CA or CFA.
• 🏠 Paranjo Veliath's early life challenges, including selling their house due to financial problems, motivated him to become rich and buy back the house.
• 💼 Veliath started working at a young age, first as an accountant and then at a telephone exchange, to support his family and earn more money.
• 📚 He enrolled in a law college for its affordable accommodation and services, which also provided him with a foundation for his future career.
• 🚄 After graduating, Veliath moved to Mumbai, where he was introduced to the stock market and began his career in finance.
• 📈 Veliath's success in the stock market is attributed to his value investing strategy, focusing on fundamentally strong stocks that are undervalued.
• 💡 The key lesson he learned from Mumbai was that common sense is crucial for making money in the stock market.
• 🏆 Veliath's first major investment was in Geojet Financial Services, where he saw potential based on the company's fundamentals and management.
• 🔑 His investment in Geojet turned out to be a multibagger, proving his common-sense approach to investing was effective.
• 🔍 Veliath looks for companies with good financial practices, strong balance sheets, and honest management as part of his investment strategy.
• 📊 He also invests in companies facing temporary troubles, using common sense to identify opportunities when others might be panicking.
• 🌟 Veliath believes that the best stocks for high returns are often found in the mid-cap and small-cap segments, not just in blue-chip companies.
• 📈 His portfolio management firm, Equity Intelligence, has shown a compound annual growth rate of around 33 percent from 2003 to 2017, outperforming the market.
• 💼 Veliath's personal portfolio is heavily invested in small-cap stocks, which has contributed to his reputation as a successful small-cap investor.
• 📚 Continuous learning is emphasized as a key to success, regardless of one's current job or salary.
• 🤔 The importance of using common sense rather than overcomplicating investment decisions is highlighted.
• 🔑 Finding and sticking to an investment strategy that works for the individual is crucial for building wealth in the stock market.

Q & A

Who is the main subject of the video script?

The main subject of the video script is Paranjo Veliath, a successful small cap and mid cap investor from India.

What significant event in Paranjo Veliath's early life had a profound impact on him?

The significant event in Paranjo Veliath's early life was when his family had to sell their house due to deep financial problems, which made a deep impact on him and motivated him to earn money and become rich.

What was Paranjo Veliath's first job and how much did he earn?

Paranjo Veliath's first job was as an accountant in a small company where he earned a salary of 1000 rupees per month.

Why did Paranjo Veliath take a second job at a telephone exchange?

Paranjo Veliath took a second job at a telephone exchange because he was ambitious and wanted to earn more money to provide for his family.

What was the turning point in Paranjo Veliath's career that introduced him to the stock market?

The turning point in Paranjo Veliath's career was when he moved to Mumbai and got a job at Kotak Securities, which introduced him to the Indian stock market.

What was the name of the portfolio management service firm that Paranjo Veliath started?

Paranjo Veliath started a portfolio management service firm called Equity Intelligence in the year 2002.

What was Paranjo Veliath's first investment decision after moving back to his hometown?

Paranjo Veliath's first investment decision after moving back to his hometown was buying an eight percent stake in Geojet Financial Services Limited.

What was the initial valuation of Geojet Financial Services Limited when Paranjo Veliath invested?

The initial valuation of Geojet Financial Services Limited when Paranjo Veliath invested was around only 2.5 crore rupees.

What is Paranjo Veliath's investment strategy according to the script?

Paranjo Veliath's investment strategy is to be a value investor, focusing on fundamentally good stocks that are undervalued, regardless of the company's size, and looking for companies with good financial practices, strong balance sheets, and honest management.

What is the compound annual growth rate (CAGR) of Equity Intelligence from 2003 to 2017 according to Paranjo Veliath?

According to Paranjo Veliath, the compound annual growth rate (CAGR) of Equity Intelligence from 2003 to 2017 is around 33 percent.

What lesson did Paranjo Veliath learn from the city of Mumbai about the stock market?

Paranjo Veliath learned that common sense is the key to making money in the stock market from the city of Mumbai.

What advice does the script offer about investing in the stock market?

The script advises to keep learning, not to overcomplicate things but use common sense, and to find and follow the investment strategy that works best for the individual.