Parag Parikh:
A Successful Value Investor & Founder of PPFAS AMC.
He always dreamed of turning a normal investor into a High Networth Individual.
Sharing his inspiring success story. ♥️
– A Thread 🧵–
A Successful Value Investor & Founder of PPFAS AMC.
He always dreamed of turning a normal investor into a High Networth Individual.
Sharing his inspiring success story. ♥️
– A Thread 🧵–
1. Early Life
Parag Parikh was born on 12 Feb 1954 in Mumbai.
He did Masters in Commerce & Economics.
Always wanted to do something different in life.
He once worked on a project, but it failed.
Later, another company launched the same idea & it became a big success.
Parag Parikh was born on 12 Feb 1954 in Mumbai.
He did Masters in Commerce & Economics.
Always wanted to do something different in life.
He once worked on a project, but it failed.
Later, another company launched the same idea & it became a big success.
2. Entry into Stock Market
Parikh felt starting a business was tough (approvals, labour, employees).
So he chose investing.
1979 - Became sub-broker
1983 - Became BSE broker
(by selling jewellery of his mother & wife to arrange money)
Parikh felt starting a business was tough (approvals, labour, employees).
So he chose investing.
1979 - Became sub-broker
1983 - Became BSE broker
(by selling jewellery of his mother & wife to arrange money)
3. Doing it Differently
In those days, brokers only gave stock tips.
Parikh started giving detailed research reports to clients.
Later, even big investors (FIIs & DIIs) became his clients.
1996 - Started PMS which became very popular.
In those days, brokers only gave stock tips.
Parikh started giving detailed research reports to clients.
Later, even big investors (FIIs & DIIs) became his clients.
1996 - Started PMS which became very popular.
4. Dotcom Bubble (2000-01)
Tech stocks were going up like crazy.
Parikh warned clients that they were overvalued.
But markets kept rising.
Clients blamed him & many left.
He was frustrated.🙂
Tech stocks were going up like crazy.
Parikh warned clients that they were overvalued.
But markets kept rising.
Clients blamed him & many left.
He was frustrated.🙂
5. Learning & New Start
He went to Harvard Business School to study Behavioral Finance.
He learned that good investing is not just analysis, but also about understanding crowd emotions.
He went to Harvard Business School to study Behavioral Finance.
He learned that good investing is not just analysis, but also about understanding crowd emotions.
6. Launch of Mutual Fund
PMS was only for rich investors.
Parikh wanted common investors to benefit.
2013 - Closed PMS (which gave 21% CAGR) & started PPFAS Mutual Fund.
He made big money in FMCG stocks like HUL, Colgate, Gillette.
PMS was only for rich investors.
Parikh wanted common investors to benefit.
2013 - Closed PMS (which gave 21% CAGR) & started PPFAS Mutual Fund.
He made big money in FMCG stocks like HUL, Colgate, Gillette.
7. His Way of Working
- No marketing or fancy promises
- Focus only on delivering value
- Invested his own money in the fund (skin in the game)
- Never launched 10 different schemes just to collect AUM
- No marketing or fancy promises
- Focus only on delivering value
- Invested his own money in the fund (skin in the game)
- Never launched 10 different schemes just to collect AUM
8. His Investing Rules
- Simple businesses
- Honest management
- Strong brands & pricing power
- Buy only at good valuation
- Simple businesses
- Honest management
- Strong brands & pricing power
- Buy only at good valuation
He said:
- Stock market is like farming 🌱
- Be patient, don’t expect quick results
- Do opposite of the crowd
- Stock market is like farming 🌱
- Be patient, don’t expect quick results
- Do opposite of the crowd
9. Inspiration & Books
Mentors: Chandrakant Sampat & Warren Buffett.
Attended Berkshire AGMs regularly.
Wrote 2 famous books:
- Stocks to Riches
- Value Investing & Behavioral Finance
Mentors: Chandrakant Sampat & Warren Buffett.
Attended Berkshire AGMs regularly.
Wrote 2 famous books:
- Stocks to Riches
- Value Investing & Behavioral Finance
10. End of an Era
3 May 2015- On his way to Berkshire AGM, he met with an accident & passed away at 60.
A huge loss for Indian investors 🙏
Today, PPFAS AMC manages 1.2lakh Cr AUM, built on his values.
3 May 2015- On his way to Berkshire AGM, he met with an accident & passed away at 60.
A huge loss for Indian investors 🙏
Today, PPFAS AMC manages 1.2lakh Cr AUM, built on his values.
A true pioneer of value investing in India.
Tribute to Parag Parikh sir 🙏
Do repost & follow @BaluGorade for more such stories.
– End –
Tribute to Parag Parikh sir 🙏
Do repost & follow @BaluGorade for more such stories.
– End –
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