Ramesh Damani – The stock picker who makes concentrated bets.

As per the latest corporate shareholdings filed, Ramesh Damani publicly holds a portfolio of just 1 stock with a net worth of over Rs 34.2 crore. 

Ramesh Damani, born to a successful broker, became a member of BSE in 1989, only to realise that brokerage income wasn’t the means to fulfil his aspiration for wealth creation. With his strong analytical skills and foresight, he has invested in high-quality value companies (The “Warren Buffet” Approach).

He had spotted that spark in Infosys and CMC in 1993 which swelled his portfolio hundredfolds. Later he found the same conviction in the liquor stock- McDowell (now United Spirits) and the Navratna PSU- Bharat Electronics. His investment style can be classified as Concentrated Stock Picking (a Bottom-Up approach) wherein he identifies a potential investment at lucrative valuation, strong management and promising growth potential. The level of conviction in his methodology is evident in a couple of stocks in the portfolio at a particular time. The strategy works only for those who look for fundamentals in a company for wealth creation, not those who time the market.

As per the latest shareholding data, during the September quarter, the stock picker is invested in Goldiam International Ltd, a 1.57% stake in the company for 349,000 shares held since June Quarter of 2019. During the same period, the stock has given a CAGR of 393%.

Parting Thoughts - 7 Stock Investing lessons by Ramesh Damani.  

The ace investor has presented his thoughts in a conference on investing as under- 

1. Bear markets can be cruel enough to erode wealth accumulated during the bull rally. 

2. The more the sharp rally, the longer it would take to come back to its previous peak. 

3. Long term trend of the market is always up. 

4. Longer the stability, the greater the subsequent volatility.

5. Very, very few businesses have permanent moats-Nothing is permanent.

6. Diversification is the key to success as it is not obvious which business will outperform. 

7. Buy stocks at a cheap valuation to make compounded returns in the next 5-10 years.