Tribute to Rakesh Jhunjhunwala | FLAME Investment Lab | 2009

[Music] guys whenever i come to a place of learning i'm always reminded by the words of a great man who said that the battles of traffic are the future value of trafford there are not only one in the waters of the atlantic but in the dorami trees and fields of vegas i mean see that is the importance of education i think this lord nelson said it remains a fact that churchill was a student of eternity and eternal hello whatever and he is the man who really led him into the war with the victory in the

second world war and he said that he'd love that one but for the fact that they all studied geography and he never knew that russia he actually said it you know the important education cannot be over emphasized now you know my life my profession my passion are including markets right and to aid frank i have to interest in life and not in the wrong sense markets are known and both are considered because markets are foreign much like movement so john temperature said markets are like woman always commanding always mister is always concerned obviously always and

you know if you can figure out markets you know how to figure out [Music] but you know she's gonna get these words and all these and i feel i should be most alert because the worst of the mistakes are made in the best of the time never forget that you know i've made a presentation where i trying to cover a large number of points one is the history of markets one is india's economic growth and security markets one is the inevitability of india's economic growth then indian equity markets in the long run and compounding investment

approach exchanging from my investment my life and career and whatever the advice i would like to do so so in the hp market what i find is that a lot of people a lot of people you know discuss markets they they are very some are very excited by market some are very contemptious but nobody really wants to understand what is the purpose of these projects where the stock market is existing are they needed can a country do without them so why did the markets exist at all why did they start see just prior to the

industrial revolution the industrial revolution there arose need for large capital which cannot be provided by single people families thus was born the idea of the joint stock family or the joint stock company now the people you all know one of the companies that have limited liability right but the people who are owning the shares of these johnstown companies were diverse they wanted to have a constant ability to sell these shares and have a valuation for this therefore arose the idea of stock markets and liquidity so why are stock markets there they provide capital from the

transfer capital from owners of capital to people who can use capital right in order to provide liquidity and a mechanism by which this can be valued and it can be exited and entered we had the stock markets so the stock markets have not come because somebody wanted to create a damn gambling done as many people think right they have a very big purpose because they are they transfer capital from users of capital from whole lot of capital to users of capital right what are these capitals capital market they are the temples of capital allocation right

and do you understand the importance of capital allocation do you know why communism failed i personally think that in a form of government communism is a very very good form but why did it fail because the state allocated capital and the allocation of capital by the state led to its inefficient use while in capitalism it is the markets which allocate capital why did russia fail russia was apparently so see russia why did communism fail because the state allocated capital and that cap allocation of capital led to inefficient use look at the steel industry in russia

it all closed down the moment capitalism the moment communism was out so but in it is the stock markets and the markets which allocate capital in capitalist societies although there might be some aberration it's not the end of capitalism right why do you think of mr nano from sex area in 1987 he had half a million tons of cement acc may be 15 20 million tons but by 2002 three gujarat became one of the top two producers of cement in this country why because he could use capital efficiency and because he could use capital efficiently

the market gave him far more capital than other companies so they are the temples of capital allocation they channelize capital into most productive assets right how do you get risk capital where are you going to get risk capital you may be able to get debt when are you going to get equity for any project right whether you do it in unlisted company listed company most unlisted companies are also funded with the idea that exit will be through listed companies so for the growth of risk capital which is the key for the growth of any society

the the channels are the equity markets could have mr money being what he is without the equity markets surrounding tata would not have put tata steel the 1 million plant in 19 1900 without the use of public money so it's very vital you know the most of the industry in india has been given work to the use of public capital and it has that capital has been accessed through the stock markets right then of course it's a parameter economic environment the finance missile always discussing that is the sensex more greater than his opinion but the

fact remains that for a lot of people these stock market movements is a barometer of cour of of the economic performance of a country although it may not necessarily be so right and finally it is a way where you know savings can be transferred from owners of capital to users of capital so therefore don't think that it's a gambling then or something needed not needed mommy will say daddy will say it's not a good place whether good or not good it is needed one of the reasons why america had they had this kind of growth

was the it's cutting edge capital markets right although there have been some problems after that but it's not the end of the story so i hope i've been able to explain the purpose of markets now you know people say i'm called a bull everywhere although i'm not necessarily a bull sometimes i'm also a bear only by size people call me bull right so but what i feel is i first when i want to talk about indian equity markets i want to first talk about indian economic growth so a lot of people tell me why are

talking economic growth interest in equity markets but i want to explain that all valuations are a slave of earnings what i want to say is that the valuation of any stock ultimately depends on the earnings of the company right after that and earnings are a function of economic growth it is a recorded fact of economic history that the profit growth of the corporate sector in a country is between 1 to 1.5 times nominal gdp growth normally gdp growth is the gdp growth plus the rate of inflation right so if i say that india is going

to have 9 gdp growth and 6 inflation so 15 nominal gdp growth now the corporate sector's profit growth is going to be 1 to 1.5 times generally it's 1.2 may be 1.11.3 so that means what that if india is going to have 15 nominal gdp growth for the next five to 10 years of profit growth in india for the corporate sector will be between 17 to 18 on an average some years it could be 12 somewhere it could be 25. so therefore a longer term bull market in india is dependent on the growth in corporate

earnings the growth in corporate earnings is dependent on normal gdp growth so therefore before i talk of the long bull market in india i want to talk about india's economic growth because i went to a lot of places and students tell me somebody was a lecturer in india's economic growth we are concerned with equity markets so i think it's my duty to explain first the relevance of india's economic growth to india's equity markets just as i said the bull market in liquid is present and future is a direct derivative of india's economic growth now i

use the word inevitability of india's economic growth i have an opinionated character i had an opinion in 1985 that come what may be i'm a qualified child accountant i go and invest money in the stock market or so my father said where is the money that you will invest right but i was opening character i thought stock market will do well i went there i am an opinion character i think india's growth is inevitable if you have just seen the trailer the picture is actually going to start and why do i feel it is inevitable

i know some of you all must have been students of chemistry you have done i've been a very bad chemistry student right but the fact is that there is a chemistry which leads to an outcome a combination of factors right now there is a combination of factors in india i think some are products of history some are cultural most are irreversible which gives me the feeling that india's economic growth is inevitable right and i mean much higher growth than what we have not the five percent six percent seven percent but ten percent why do i

feel so i feel why well india is basically a society of tolerance see it was this tolerance which brought the mughal emperors into india but what is the modern world about the modern world is about the ability to anticipate change accept it prepare for it and benefit from it and rigid minds cannot accept change if i am taught at home that this is the only truth don't believe anything else right or you are brought up in a very you know confined cultural fact you know you will your mind will never accept change but because we

and basically hindu and hindu religion is the most tolerant and open we accept change that's why we're very good at mathematics and science in the modern world societies which are not if saudi arabia cannot accept change saudi arabia cannot grow it's a fact if you know burma can't exim change but what can't grow so i think it is the culture of tolerance which is which is very very important for india's place in the modern world right then we have skill sets i don't know how to say how how skillful indians are and surely it does

not only belong to the indians to the middles and the yogis it belongs to every indian and i can give you an anecdote that you know diabetes is the most researched disease why because the rich get it they can afford the drugs the medicines have been taken every day and india is the diabetes center of the world and it's a lifestyle disease everywhere right what they have found is that indians are most diabetic pro so they did research they said is it got to do with diet did you go to relocation but you know a

completed research where anybody place where the indian population was more than half percent worldwide they did research they found indians are most improved so say they said indians are genetically prone to diabetes so if indians can be so successful worldwide the skill sets only cannot be of the non-residents so indians are genetically prone to skills it's a fact it's analogy at all right and look at our doctors look at our lawyers right where is the skill set which is not available look at our professors what is the skill set which is not available in india

you know how the whole api industry i don't know i understand the api industry the normal driver manufacturing tablets you know it started in india was 1967 or 66 government of india passed an order that glaxo or any other multinational company has to manufacture the api in india so they made a plant in india that was the end of it now india is the leading manufacturer apis in the world indians saw the plant they transplanted it they now make it cheaper than the foreigners why we have made the atomic bomb we have not chosen the

technology from anybody we have not sold it to anybody it's all indigenous indian technology we are now launching space satellites for israel because we do it at five percent of the cause and nasa once so there are so many demonstrations of indian skill sets right i mean i can go on and on and on so we are a tolerant skill society then we are an entrepreneurial society only a indian entrepreneur can pull up something like flame come to a place of from nowhere right in the middle of nowhere and then not dream of creating an

educational institution and indian entrepreneurial skills women are we are among the best entrepreneurs in the world millionaires row in london country london contains only indians and we have fluorescents see we have a history and culture of entrepreneurship right then democracy this is something people don't like but i like very much because i you know it it is what slows us down but it is what keeps us together right and if you see the list of the 15 richest countries in the world excluding singapore and hong kong all city states they don't matter when you do

me right they are all democratic they don't matter they are like puna here i mean in that importance finally in the relevance of india what is the relevance right we have to take everything in its own uh you know in its own perspective so therefore if you see the top 15 nations those who had prosperity for last 50 years 100 years they have one quality they are all democratic and i think why democracy is see we don't like democracies like not liking the husband you have what about the alternative so dictatorship anything can happen you'll

have chronic capitalism the state would be sold the politicians managed to sell it in democracy suppose you have 100 power i don't know what they'll do and i think indian democracy is now maturing there is big concern mrs gandhi wants national rural employment guarantee scheme help the rural poor why because they want the votes so you want to help the poor because you want their vote see the power to democracy and india has got deeply angry in democracy for the last 21 years we have no single party in power in parliament but all the institutions

of democracy whether it is capital whether it is the army whether it is the whether it is the reserve bank whether it is the company auditor general whether it is the judiciary everything is working independently and change of government is is absolutely aspartame and see we must understand one thing that democracy has also evolved in every nation if i give you another what happened in america you won't sleep at night yeah because in india also the democracy has to evolve i think that democracy is extremely important because we don't know if there was no democracy

i don't know if if sanjay gandhi had become the absolute dictator of this nation what could have done nobody knows right then we have demographics see i think this is extremely important every society goes through a demographic evolution right and you heard of the baby boomers in america now america went through its most prosperous phase because it was in the most pro it was in the most favorable demographic phase during those 25 years right and every society goes through this evolution and for the next 40 years india is going to have the most favorable demographic

profile of any substantial nation in the world and this cannot be reversed and china is going to lose it fast because china enforced one children we tried to i don't know we succeeded or not right but the fact remains that this demographics is extremely extremely favorable and all societies have had the greatest prosperity when they have gone through this phase and this can't be reversed even if people are start having more children or less children now the effect is going to come 40 years later not next so the next two three decades is fixed right

then you have a savings rate you know it's very peculiar you must learn that when you are poor you save more the poor say more than the rich and empirical evidence shows that where there is no banking and no loans are available and no social security saving is the highest and where loans are possible so social security is there people people spend far more but in initial stages of growth and development any society needs saving state because what is growth growth is why how much you invest and at what rate of return you get from

that investment and how will you invest if you don't see and india has youth savings i think this state will be three lakh 59 crudes of course government eats over some part of that saving by its deficits right so we have a culture of tolerance skill sets entrepreneurship democracy demographic savings rate right without in the initial stage of of growth the savings rate is extremely important and then i come to orderly evolution we are all impatient most indians are dissatisfied with india what is this load is not made airport is not good right electricity is

going but sir look at singapore look at america but sorry america is 250 years of 230 40 years of democracy 234 years of free growth of pro-government and america did not jump from a per per capita gdp of five dollars to five thousand dollars in ten years right so everything has to evolve singapore doesn't matter sir singapore doesn't have an internal language as big as puna i'm not joking if you want to make if you want to make let me make bombay prosperous i can make it in three years but what about the people who

live outside bombay right so let's not compare ourselves to the nation so what is see what grows and survives perfectly is what evolves and india is evolving and according to me it's evolving in an orderly manner i think look at the way democracy is maturing the chief ministers who are doing good work are getting re-elected right so i think you know this orderly evolution where at every stage of growth we are setting a faster place and we are doing it in a rate of growth which is not in a manner which is not satisfactory but

according to be more sustainable and then of course you'll have to take off only the problem is that the runway is like bombay airport we don't know what the clearance will take right so now you know we have a confluence of reforms see they are acting and reacting on each other if i do reform in telecom it helps all the other areas if i develop other infrastructure it helps all so these reforms act and react on each other at the same time the country is finding size is finding its own feeling of confidence right it

is being recognized internationally the urgency is getting reinforced day by day and therefore finally bombay airport will give runway clearance i think we will we will be on the way to sustainable sustained double digit growth and i see no reason why post 2012 30 or post whatever expiry of this international crisis right whatever form it takes india should not do double digit so i think this is the reason why i feel why i'm talking all this that india economic growth according to me is going to be eight nine ten percent until this the end of

the economic crisis worldwide and then we are surely going to have double digit growth so if you have ten percent or nine percent normal gdp growth five to six percent inflation with 15 percent you know nominal gdp right i don't see any reason why corporate property should not grow 17 to 18 months so i'm talking about india's inevitability because i want that nine percent growth figure i want to be confident of that figure i don't want that nine become three then three becomes six and i see no reason why it should in india and i

have tried to order out the reasons why i feel it is inevitable i can't predict the time that means my only looking at is watch right and why i say one is you have the profit growth then what about the money who will buy you know i was very bullish on public sector stocks so ndt fellows to ask me but fis don't buy who will buy i said don't worry if the girl is pretty the suitor will come right so [Applause] if india is going to have 15 growth normally will be growth right you have

a modernized training system with demoralization and we have done demoralization the fastest in the world and i think today we settle our trades faster than the new york stock exchange and we have done in the last five six years right we have corporate government through markets fault of course in bull market there's no corporate governance because corporate bus governance is the product of bull markets because it's in bull market when you lose all your senses and read overwhelms you right we have effective regulatory environment just read the semi law once you read it you won't

you'll stop trading all your life we have insurance now which is blossoming and we have inevitability of fi investments where will they invest where growth is two percent right and rate of interest is one percent or they will invest by growth is twelve percent or nine percent return on equity seventeen 17 16 right so i the question is not whether they will invest the question is only how much right and i think it's inevitable it's a course they have to invest and they have become emerging markets we have become developed markets because they have current

account deficits yeah it's a fact they are now having socialist societies because the state is controlling everything right so if you are going to have 15 to 20 corporate profit growth you have effective regulatory environment moderate trading system youth savings as far up till now when the tax priorities we don't know after the tax code no capital gains short term 15 percent dividend tax free i have a friend dubai i asked him you pay any tax he asked me what is that i don't know so until in the stock market we can say that but

i don't know whether we will do it in future or not then the question is why will money not flow into equity markets see this is the distribution of savings coming into into equity market this is rbi data right and post 2011 is my prediction now about 17 percent of indian savings in 1991 came to equity markets and it became 1.1 percent in f505 is not my daughter only if fy11 is my prediction and if it goes back to 15 percent by fy11 what kind of money can you see in equity markets see this i

made a chart fund flow for equity markets it's a complicated chart but you're all mba students so better learn in life also lead life better learn to handle complications so you know how it is explained that you have a gross gdp you have a saving which goes up every year say nominal gdp goes up 13 14 then savings rate that saving rates is going up every year because of demographic reasons because of that the quantum of savings is going up then the quantum of savings coming to financial sector is going up because of education because

of availability because of communication right then the percentage of financial sector savings coming into the stock market is going up here also the flow of money to equity markets is inevitable limited was telling me in the way that the indian mutual fund in indian insurance companies are going to invest 20 billion dollars in an equity this year and that is one side ganga it only comes it doesn't go back so if equity if india is going to grow at 14 15 percent that is why therefore it's my prediction that by you know sorry by 2011

45 billion dollars of local money should come into the market and two thousand nine ten by production is thirty four is uh 34 billion right it could be 4 billion 5 million less or more if you have going to have nominal gdp growth right which is for 15 13 14 percent you have good trading systems you have a new blossoming financial services industry you inevitability of fi investment you have huge money waiting to come in then why will the market not go up this in the short and long of it is my bulkiest don't ask

me you're bullish i don't know much i'm not a professor of economics i'm taking a share bazaar workshop right because i do trade also because no father gives no father in locust how do i get the money to invest so you have to trade earn it then invest it right so this is in the crux my bulk is for india and i have put my money where my mouth is 100 of my assets i would say 99.9 100 of my savings in life are in indian equity right that's my belief i don't buy any land

right and i don't have any investment in any jewelry so that's my bull case okay now i want to go about personal investing you know lot of people are interested about investing but what is this act of investing how does it start why do you link investing only to the stock market investing can have various asset classes so the first task of an investor is asset allocation should i put the money in debt should i put the money in equity should i put the money in gold should i put the money in land right should

i put the money in art so how do i allocate my assets right i think we will have to go to the home right now how important is this asset allocation see i had to do nothing in life in 1986 in 1975 if i had bought gold in 1980 if i had sold that gold and bought the nikai and 1989 i sold the nikkei and bought the nasdaq my return would have been 26 percent compounded you know 26 percent compounded means your money doubles in some 33 months so over a period of 30 years your

money will be some 40 50 60 times right so this is how important the task of asset allocation is so the starting point of investing is where just because racket generally says don't put all your money in equity right for any investor okay so you your first task is allocation and there can be courses and courses and courses on allocation and it is the 60 percent result is your allocation of asset and 40 percent is specific in general am i right location right so first act is asset allocation second is the importance of consistency because

you're having a lot of students from business families you know i come from agarwal marwadi family so we always say right and i'm proud to admit it here i am trading roots right and why not be spread over heritage you can't change it right so see the difference between a 10 return and a 15 return over over twenty years so once when you when you i look at where you are that warren buffets compounding compounding no marvel compounding or vulnerable compounding [Music] was missing one year also breaks you down so badly so i wanted to

point out the importance of asset allocation and of consistency so don't go for too many risky to risky assets easily right then second is choosing an investment this is another boring long one a lot of people ask me how do you choose an investment you know the most difficult adjective in the english language are beauty in a girl in value in a stock it differs so much from the beholder right so how do you find value in a store because for every buyer there is a seller some like nandita saying some like sushmita saying some

like ashwara so you know beauty has its own concept here so it's so difficult so and you know when i go to buy a stock someone is selling it so therefore that person feels there's no value in that stock so how do you choose a stock so see the basic thing i will tell you is when you invest in a stock think of the business model of that company i'm trying to invest i'm not going to trading trading may think momentum here you think when you invest think of business model right and i think the

first thing i look at when i invest in a company is the opportunity would have i invested in titan if i didn't feel that the dwelling market in india we go you know from five percent branded to say 20 branded and in five years if one lakh road is going to be the branded market in the jewelry market in india the branded market will go from 5000 close to 20 000 so it's a 15 000 crude approach so you know nobody can grow bigger than the apostrophe think of enforcers what would have enforces been without

the internet did enforcers in 93 know that the application of information technology will expand the way it did but it happened and it expanded in full system opportunity so the first thing we should look at is opportunity look at infrastructure what opportunities in india right and of course when you look at the opportunity also look at the addressable opportunity opportunity infrastructure interview 25 lakh crores but my company can only make water bombs only the knowns the unknowns to make them loans is difficult right eps carry is predicted to some extent p is only difficult to

predict but as long as your companies are gathering earning pe will can come in three months earnings can't come in three months say there was no growth in the corporate sector in in the stock market between say 299 and 2003 very bad years but once the market started moving up the ps the earnings were accumulating you got the peace just in six months so as long as the company's earnings are expanding don't worry right be patience you know right and make exit an important decision not driven by profit or loss i think very important people

want to bloody sell the flowers and water the wheats so people want to sell the profitable investments and keep the lost making ones so i think every exit should be and have a slide on exit is should be an independent decision right exiting an investment when would i exit an investment first thing is i have limited capital and everybody in the world whether it is tata whether it is builder whether it is ge capital everybody has limited capital so when i find that my asset any other asset gives me rate of return which is better

than what i anticipate on this one i will exit invest i will exit some investment right then review of critical factors suppose i feel the title business model is affected the growth will not come or some other company is able to dominate or the margins are permanently impaired i may say right relative opportunity as i explained the first one eps or eps expectation peaks this is very important you know in infosys in 90 2000 mckenzie and nasscom did a study that software industry in india is going to grow 100 every two years so for two

years three years infosys profits grew hundred percent everybody assumed for next 10 years it will go 100 so eps should not peak may not peak but if the expectation of eps peaks that could be a exit point right and observed p because expectation of peace of of absurd expectation right i think that's the time to say and remember one thing it's not driven by profit loss it has to be an independent decision okay sir i think i will pass this you can read this on your own this is what my partner has written for me

can you know see this one i thought this i like to explain red enterprises our first ethos is god's grace and and those blessings because i believe that what we are in the world is not because what we are we are what we are in the world because of the grace of god and the blessing there is something there is a set of circumstances which have come together and brought us where we are but those circumstances have not been necessarily created by us soul right and they have been created by by god by elders right

and therefore never get the belief that i am what i am because i am because i am smart i am successful never forget there is an upper hand and that hand can go anytime so i would say my biggest player is god's grace and religious blessings right they never aim to win all wars despite losing many a battle churchill said you know that you have to lose many a battle to win a war i think you all must eat his life right and i think in life i i married for 22 years i must have

shouted at my wife at least 220 times or maybe 200 times my wife would have shouted at me two times but because she doesn't shout she wins the i she wins the war right she loses the battle of shouting but she wins the war of my love and regard for her right i mean i give you so many examples for trading you made a mistake lose the battle move on and of course i have a motto where the health is high and the mind is without i don't want to do anything in life where my

head cannot be very high i have far lesser will than people think but far more than they need wealth also has a purpose in life right so why should i do anything but i can't hold my head high and that's why i don't manage anybody's money except my wife i have no choice because i don't want to be answerable to anybody right and i must tell the ladies i had a professor in law college in sydney to say as long as you're married to your wife under the provisions of the indian penal code you cannot

be charged with raping our but you can be charged with stating your money right so his money is his money and her money is her money don't forget legally also and then we have a logo rare enterprises green compounding rare because rikai is my only wife and i am r.a rakesh she's ari rikha right and we are baseline this my partner is made inside intellect integrity i don't know i will tell you all things in my life you are interested i don't know see my father was in the was a commission of income tax i

suffered a childhood sickness i had palace of the leg in hand and i had what you call those are you know menditis and i lost my sight i lost all my functions and mysteriously i don't know they gave up then i'll i'll knock off at two and a half then when doctor was there did an operation found a tumor in my spinal cord and everything came back and it was always a very curious and assertive child i know the youngest in the family or right so and because of my sickness my parents were things special

care for me i went to school first and second standard right and my father used to say business i was a reasonably good student i completed my channel you know my father was interested in the stock market so he would discuss with his friends in the evening the stock market so i tell my daddy yes what are y'all talking well you see some news comes on goalie are you on the stock goes up up and down so you see that's where the stock market moves you know at the age of 14 15 some are interested

in airplanes some are interested in crickets some are interested in girls i got it's in the stock market so i would read avidly about it first i would read balance sheet i'll say share capital reserve and surplus oh this is a good company right i used to feel those companies were good high share cable and i used to wonder it's multinational companies they don't have high reserve and high share capital why the price is so high and all these indian companies they have such high book values right then i learned to read a balance sheet

i didn't make a b com did my chart accountancy is like 1985 my father said what do you want to do i'm going to stock market so my father said never do this i'll never give you any money don't go to any of my friends right you have a house here you can live here you are a charter government if you don't succeed in the market you can always earn 15 20 000 a month he gave me that sense of security he said never forget your word is your bond be fearless may god bless you

for is the blesser no money my mom is saying we'll marry you go into the stock market doing sata nobody give you a girl also i said mummy don't worry you'll have one less daughter allowed to trouble you right i don't know the stock market started i shall carry a bag go to the street anybody who always fathers taught one ear two ears and one mouth but never learned blah blah blah tata power is good this that sort of humble beginnings initial hurdles like my mom no capital then i have a brother you know practicing

charter accountant he gave me he got me loans of 20 lakhs one go one person his client used to work in dubai he gave me 10 lakhs and he won't take security i went to his house mr mendoza in the stock market you gave me 10 lakhs i don't want to keep your money without security boss conversation i don't know what i want to say i actually won't keep you talking is that i have faith in you i said no mr middle you keep your security that's why i started 1985 boom i had nothing when

i started 5000 in one year i earned 25 lakhs paid three four lakhs tax i was a king of the world right graduate from smoking four square to five five five right [Applause] like fortunately found some girl married her parents found i won't lie married her then two three years nothing what to do my father said put a factory so i went to hyderabad i had 20 25 lakhs i don't that i kept 20 likes but tata power she hasn't given them right then my father said i will come in the factory also i say

daddy you are from the government service you can come here once in three months review everything and you please stand by me he says no no i said i'm going to bomb right so then i came back you know these are the initial hurdles but i had belief that no i'll do well and my father told me if you don't do i don't bullard kishka very careful in money matters right from childhood right so i mean i had 15 20 likes saving i said market will you know give opportunity then i find i met some

friends right i mean he took me to an image by ramesh navani kamal khabra good people and all well-intentioned people sort of interacting especially with radicalization i learned a lot of good things in life my approach to market change i also learned on the job maturity i got maturity about markets then came madhu dhanvad then came this you know again i went to my dad in 89 daddy i said i have 15 lakhs you give me 15 likes room i said you give me one year grace period after that i'll pay you money like a

truck never pays a monthly installment my father said no i'm not going so they said how to get the money so i said i'll trade there's no other way i've not never done any speculation until 89 right but i knew it's the stock markets suicide if you right and then you know i did the initial trades i learned the importance of capital protection i paid 225 likes tax in 1985 i used to feel like a king first we never stop money to go have a drink here though like attacks a check sign where you feel

like a king right this was the initial phase then came the budget then i remember i made money in saga they asked me one mr bajaj he used to explain to everybody just like i used to explain about everybody nobody would listen to him and then when he explained the facts to me i couldn't believe it here that you know in iron ore the prices are fixed one year in advance six months in advance for the next year already you know the they had got a price rise over 26 percent in iowa right and there

was considerable difference in foreign exchange rates between the last year and the current so next year was going to be a bumper here and cesaro was 26 rupees nobody would listen to me and rather he said the money and come on so i have to explain to them i was the guy i was convinced i bought three like shares i had 50 likes without tata power i bought freelancers leverage what is that i said go to 15 rupees i'll turn up one page and i turn radar and come and laugh at me and the price

went from 26 to 65 in three months and from 65 to i think 2200 in three years that's how i made the real initial movie and then came madhu dhanweda's budget i remember navigation had taken me to midnight people were so buried so penis and i was sure that you know and one thing that vp will not give a budget will hurt the business community see he was the man who first reduced rates of tax who abolished state duty and he was a although he was a he was a taker he was a businessman so

i staked my life in that budget right and i must have been worth one and a half crows when the day of the budget and i was worth 20 crores the next day i stayed my life right and that's how i made the real initial money okay then when we experience the great my you know i remember the index 3g started at 600 then i think it went to 1800 then came the gulf war right the index came back to twelve hundred and then came mr mehta the great mr ashin method right so initially when

the stock you know we bought acc i'd taken delivery a member of some 59 channel acc at 300 we sold at 2800 2900 3200 3300 price came back to 2300 2400 then it came back 3 500 we all shorted then one cold afternoon i all shot and priced either went and cut all my shots then we made money in the rice and then we knew all this thievery money when the market came down we made the money of our life and then you know trading investing cooking it can't be taught it has to be learned

and it has to be learned on the field i will marry mommy my wife cut me you know she has seen my mother make it hundred times right so it is something it is you know learn shorting and pyramiding we learned i trade actively was i'm not only an investor at all my father has not left me any inheritance so i have to go on and invest right we learned shorting and pyramiding we learned prudent betting that how in you know markets you have to be very prudent you learn to take a loss then you

know i realized one thing in life which is very important i think ambitions cannot overshoot market opportunity i think what happens look at rockets and have enough money right let's go into let's put some industry my wife will say what are you doing it all forgot the importance of reading experiencing and learning now then when you introspect to understand what you have learned what you've gone through right then participation in tech boom you know when i set up the software i am illiterate after this office comes up and all these young generation people understood up

about 97 what is this software software here never used a computer i should think it's garbage and garbage out in my ca finally i did not take our computer i never understood technically in 97 98 i understood from there without me tech stocks then you know private equity everybody was investing in priority i also said i'll invest 20 crores so beast karaoke we never earned but we learned and i knew that was one of my most forceful periods of learning as an investor because i saw how actually companies what are the problems what are unrealistic

expectations right how entrepreneurs lose their minds how competitive ability is just a myth how there are me to do companies the difference between a real company and a me too company it was a great education i think that money lost was well lost right and then of course i made the biggest money of my life in the pas us i was very bullish on the pso's and i feel very proud i started buying various electronics from 18 rupees today also the price is 1600 i have sold out right it's and i remember during the tech

boom people were buying all penta himachal global i used to buy all this pso stock shipping corporation 20 rupees i bought price is 24 i'm very happy so i used to walk in in the street of the stock market so people used to garaya bundoo buying psu stocks sherwood but that proved to be the biggest jackpot of my life and this is the defining time i realized in 2001 too that india is on the threshold of a secular and structural bull market and i wrote so in economic times right i thought i invested in both

stories concentrated portfolio concentrated and i was that was fair at the same time i thought i had some maturity as an investor buy right hold tight exit in frenzies right meaningful stakes i want to invest stakes you know where i have some at least person two person three person in the company i want to be a value-adding investor organization building right until now i was my company's damaging director chairman pune everything then i got some people trying to make a team right i have two partners now and then resisting temptations resting can be very important

people will come home i'll get a call from my sister-in-law see this company fellow wants to meet with jiji is very much interesting right so we call them you see our stock our earning is 50 rupees per share but the price is only 120. so i said your duty is to inform and perform perform an inform ula no sir you know we i said how can i help you well we will do market leaking i said what is this so then they will explain you don't understand the price is 120 we will give 10 lakh

shares at 80 rupees then we'll hit the share and make it 160. sometimes you think of the money involved resisting those temptations but i know that anybody who has tried to misbehave with a stock market or with a woman the road is half an object see fire stock market woman there's no difference never misbehave with anything else it's a learning of life right so i'm resisting i learned how to reduce those temptations right and i have a lot of aspirations and i want to share them with you right one aspiration is to be your age

so that i could have the free mind you know excitement world at your feet dating all the beautiful girls and right first is socialization i want to and a perpetual view see i want my rare enterprise to live beyond me right and i want to institutionalize it so it grows beyond occasional world right and i'm making efforts then i want to trade and invest in other asset classes maybe that of course i'm doing it in a small way to open up in india now right other geographies it's a dream i was telling you on the

way that is the dream of my life to after india's capital convertibility to trade and invest to trade and invest all over the world right of course then i want to be an investor of choice i want entrepreneurs to feel that he and not by acting but by actually doing things by adding value to my investments by adding value to the companies in which i invest right i want to do philanthropy i believe the giver of this wealth is god and it is cast this social responsibility that it must be used for good social purpose

and i don't want to give my children money beyond the point i want to give them freedom and the right of choice i don't know whether the mother will agree or not right i want to be deliverable if i have a bank balance in the night i can't sleep if i pay interest only i get good sleep right then i want to be a stylistic thinker so things statically think beyond markets and i want to be people skill focused and i'm trying to work on all of them i need your blessings and either some students

advise i would like to give students right see one thing i can tell you you can never achieve without dreaming but dream with your feet on the ground and your head also on the ground not with your feet in the air and the your hair drilled up so whatever you can do or dream you can begin it boldness has genius power and magic in it whenever you start it all don't forget in life all things big start small at the same time be practical right do something you love that is very important do it with

passion i think i succeeded in markets whatever level i did because i love markets i have a passion for them they are my life so do something that you love right the means are as important as i never forget that aspire but never envy and the means right upon the end remember one thing don't comment on other people's integrity and means and expect other people also not to commit aspire but don't envy see this is a very very important thing my father taught me see my father i always had rich friends right my father always

to tell me rakesh never ever forget the give up the ambition of being bigger richer than anybody in the world but just because they are richer today don't envy them they are different between en way and aspirin envy means it becomes zealous you know it becomes sort of jealous explanation is that i want to be so finding a very big difference between aspire and envy right i think also i know mr darwise taught me learn to learn from success in india what people do they you know they uh they they they bring down other people's

success they say oh successful ever so [Music] respect other people's success and learn to learn from it right be paranoid of success never take it for granted you know never forget one thing in life my friends that all adjectives in life are transient contemporary success beauty power wealth taste right so never take success for granted and don't be surprised if it goes away be prepared for that day you'll never be disappointed fight to have it but be prepared all right build off the fightings for you take the good with the bad you know life is

full of surprises some are good some are bad but it's all not to break down and be overwhelmed and i will say as i started life i looked at the horizon how you should you know the day when i go down 50 000 rupees a month i thought what i'll be a king here right so i looked at in horizon it seemed so so distinct and far but only when i reached that horizon did i realize how many more there are so thank you friends i can also have been going blah blah blah for one

hour more than that thank you so much for inviting me [Music] you