The Indian soil has been home to innumerable wealth creators. The same period that created the Ambanis and the Tata also saw the rise of stalwart investor Ramesh Damani.
Damani shot to fame after his stock calls on Infosys and CMC became multi-baggers. An ardent follower of the Warren Buffet style of investing, Damani made his name by picking undervalued stocks to invest in and seeing them rise multifold in the long run. His life story, early journey, and portfolio hold innumerable anecdotes that can serve as a guidebook for even new-age investors. Let’s explore what a Ramesh Damani portfolio holds.
This article covers:
- Early life of Ramesh Damani
- Ramesh Damani’s stock market journey
- Ramesh Damani’s portfolio
- Lessons that can be learned from Ramesh Damani’s journey
Early life of Ramesh Damani
Ramesh Damani’s life is no typical rags-to-riches story. He came from a well-to-do family with his father earning regularly from the financial markets. After completing his Bachelor’s in India, he moved to the USA to do his MBA from California State University. Ramesh Damani’s father wanted him back and get involved in stock trading with him. Nonetheless, junior Damani did not have the same love for the markets as his father.
Things changed when Damani’s father sent him US $ 10,000 to invest in the stock market as a sort of challenge. If the money doubled, he could keep it; but should he lose, no questions would be asked. Well, Ramesh Damani ended up losing the entire amount.
While senior Damani was disheartened and accepted that maybe his son wasn’t cut out to be a market player, a flabbergasted Ramesh could not believe that with all his education and an international MBA to boot, he ended up losing so much money. This invoked in him a new interest towards the Indian markets.
Ramesh Damani’s stock market journey
Ramesh Damani got himself a membership to the BSE on his return to India. Initially, his plan was to make money through brokerage but gradually his interests inclined towards investing and making money in the long run.
During the early 1990s, he made great returns from the market for his clients but earned very low percentages on the same. He later decided to invest for himself – Rs. 10 lakh in Infosys and CMC (1993). The investment turned 100-folds, making Ramesh Damani a billionaire. One of Ramesh’s noteworthy early bets was also on the liquor industry that earned him handsomely.
Ramesh Damani’s portfolio
As per publicly released data, Damani very interestingly owns only 2 listed stocks – Godrej Industries Limited and Goldiam International Limited with a combined holding value of Rs. 203.7 cr.
Damani holds over 3,00,000 Goldiam International Limited shares which lead to him claiming over 1.35% of the company’s ownership. It is a company located in Mumbai, in India’s premier jewellery manufacturing zone that was created by the Government of India to encourage Indian industrialists to increase high-quality jewellery manufacturing for exports. Goldiam caters to global customers and 70% of its exports are made to the American market.
Damani also holds 49,04,640 shares of Godrej Industries that is headquartered in Mumbai. The company has divisions including Godrej Chemicals, Godrej Agrovet, Godrej Properties, and Godrej Consumer Products.
Note: It is important to note that just because Ramesh Damani has a stake in the above-mentioned companies, you should not invest in these shares. Every investor has different goals, different risk tolerance capacities, and varied conviction levels.
Lessons from Damani’s journey
Ramesh Damani believes in buying stocks of companies with strong management and good fundamentals in the early years and holding them for the long term to realize gains. Damani has always emphasized starting to invest as early as possible and remaining invested for as long as possible.
Ramesh Damani in the past has many times talked about simple investing. He talks about basic market understanding and identifying external opportunities.
He often encourages investors to invest in equity markets even during boom periods as he always felt equities to be a long-term game.
And lastly, as he has said many times about the stock market, “There are no losses, only lessons earned”.
No one is a born investor. In his early days, Ramesh Damani incurred losses, and only after years of gaining knowledge and being a part of the Indian stock market was he able to create bountiful wealth.
The Ramesh Damani portfolio currently consists only of two stocks but in very large quantities. Damani is an investor who has always upheld that quality pays over the long term. Your portfolio need not necessarily be stuffed with too many stocks.
A slow and steady approach to investing, patience to remain invested over the long run, and stringent research to find undervalued companies to invest in are the key takeaways from Ramesh Damani’s stock market journey.