'Success,' which is a word for many, is a 'Journey' for some others. Mr. Radhakishan Damani's journey of a successful value investor, stockbroker, trader, and founder of one of India's biggest retail chains, 'DMart,' is an inspiration.
Radhakishan Damani made his name in Indian stock markets in the '90s as one of the most successful value investors. Currently, he has a net worth of $11.9 Billion.
The Investor's Story
Started his investing journey at the age of 32, RK Damani was just like any other amateur investor who was tussled between the what's and how's of the stock market. Initially, Damani just reviewed and observed the stock market in order to gain an understanding.
As it's said that having a mentor is the first step towards succeeding at something, Damani started following 'Chandrakant Sampat,' commonly known as India's original value investor.
Influenced by Chandrakant Sampat's style of value investing, Damani made some successful investment bets of his lifetime, which not only made him a billionaire but also one of the most successful value investors in the history of Indian stock markets.
Radhakishan Damani's Investing Style
A strategy is one of the key elements for building success. Mr. Damani's strategy to invest in stocks was based on the simple underlying principle of buying quality stocks at a discounted price and holding them for the long term. He believed in buying stocks that haven't been stretched in price and hence have the potential to earn big.
A few key principles from his investing style are, having a long-term view, having a mentor, patience, buying-quality stocks with healthy fundamentals, diversifying the portfolio, rebalancing, and reviewing the portfolio on a timely basis to keep the portfolio quality in check.
RK Damani not only outshines due to his peculiar ability to pick up stocks but also on defeating 'Harshad Mehta,' in the famous Harshad scam. Harshad Mehta was another well-known and magnanimous investor during the time when RK Damani was also trying to make a fortune in the market.
In 1992, Harshad Mehta scam came to light where he was manipulating the stock price of Apollo Tyres. RK Damani caught an eye on the same, and to beat Mehta, he short-sell the stock. Eventually, this battle led to a downfall of Mehta and the rise of RK Damani as a value investor.
The Journey from Successful Investor to a Giant Retailer
From Investor to a business tycoon, RK Damani has proved to ace it all. He was the man who founded 'Avenue Supermarkets' in 2000, whose famous supermarket 'DMart' is one of the largest consumer retail supermarket chains in India.
His business acumen made him the retail giant. He launched DMart with a mission of lowest price retailer in its area of operation. In 2019 there are 176 D-mart stores across more than 12 states in India. It is a net-cash company with profit growth of 19% y-o-y in FY19. Additionally, DMart has brand recognition among its peers.
His vision of DMart has made him the Retail-King.
Read: The Business Model of DMart
There have been many legendary value investors in this world of stock markets, but each one of them has made a different kind of impact. RK Damani made his mark by not just his investing style but also his courage and knowledge to beat the Harshad Mehta scam. Where he is an inspiration to some, for some others like Mr. Rakesh Jhunjhunwala, he is a mentor. From a successful value investor to a giant retailer, his journey says it all about him.