Young Investor

Money Talk

| Updated on: Feb 12, 2011
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A small sub-broking company that started out with just two people has now grown to be a workforce of over 2,000 employees, and has established itself as a financial services company with its foot in commodities, investment banking, institutional equities and portfolio management services. Can you guess the name of this institution? Here's a clue – it was founded in 1987.

The answer is Motilal Oswal Financial Services. This week's short interview is with Mr Motilal Oswal himself, the co-founder of what is arguably one of the leading stock broking institutions of the country. Here is his take on how he built the company and his fortune.

What does money mean to you?

I think it is an important motivator for most human beings including me. While it can buy physical possessions and luxuries, it can't buy you peace, time, respect, health and happiness.

How did you start your career? What was your first job?

My first job after completing my Chartered Accountancy degree was working for a small CA firm. I was not satisfied with what I was doing there and I left it even before I completed a year there…

What are your top financial goals?

I am a long term investor. I stay invested to see capital appreciation of minimum 15 per cent.

What is your investment portfolio made up of? How much of your wealth is invested in bank deposits, stock markets, real estate and gold?

My portfolio is 100 per cent invested in equities…this excludes the house where I stay and the little gold jewellery.

Tell us about your most successful investment... The one which made the most money for you?

My business of course. The investment in my business has yielded a return of 150 times in 23 years - i.e. my one rupee share is now about Rs 150.

One mistake on investing or saving that you regret?

I regret not buying enough gold for my wife. Now, neither she is happy nor am I. Gold has zoomed in value over the last 10-15 years.

What's the amount of wealth you hope to retire with? How are you creating this corpus?

I have no particular number in mind for this... I have put my best efforts and believe that rewards will follow.

How do you plan your investments to beat inflation?

In my view equity is the best product to beat inflation. In the last 10 years Sensex has given about 17 per cent CAGR returns.

What is your message on saving and investing to young people just starting out on their career?

One should start saving as early as possible. The beginning may be small but it would pay you well in the long term. Although, equity investing is not popular because people don't understand it properly and they don't have control over their greed and fear, in my view money if invested in right stocks and held for long term can give you very good returns. No other product can match equity in returns.

Published on February 12, 2011

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