Parag Parikh was and still is regarded as a great stock market and a veteran. He started his career in late 1970 when he founded, “The Parag Parikh Financial Advisory Services Private Limited” in 1992. His financial advisory Services Private Limited is now sponsored as PPFAS mutual funds.
Parag Parikh is renowned as a pioneer who applied the globally accepted ends of behavioral finance by investing in Indian companies. In a world where being politically correct is a norm, he started his different course— an observation on the Indian financial sector in the niches of general and stock markets (Mutual Funds in particular.)
Parag Parikh is also a prolific writer and blogger. He has contributed to various reputed publications. He has conveyed to the youth and his eager readers his opinion and stake in the stock market.
He has two books:
1) Stocks to Riches
2) Value Investing and Behavioral Finance.
Through his books, he enhanced his reputation as a thought leader and a next-level reader. It is clear in his book that he has taken a long time before investing in his field.
|Founded||Parag Parikh Financial Advisory Services Private Limited|
|Books||Stocks to Riches, Value Investing and Behavioral Finance|
Essence of Parag Parikh’s Books
Stocks to Riches
Investing in the stock market is challenging because the market is too dynamic to be protected. Brokers, analysts, and retail investors realize that investments do well but, the investors themselves don’t do well. What is the reason behind a failing investment that should be in an investor’s mind? Make a stock market bubble? How does the bubble burst? How does it burst and What is the right strategy towards investing?
All these questions are answered very well in the book. Parag Parikh, intrigued by these questions, himself answers all the questions. The Stocks to Riches is the distillate of his entire experience. He has simply done fiat investing in the stocks and provided prospective falling in vestige venturing into the market. At the end of the day, it is that the retail investor reduces mistakes by following the three guidelines. They are mentioned below:
1) Emotional Investing
2) Feelings towards gains and losses
3) Paths to glory
Value Investing and Behavioral Finance
In his book, Parag Parikh says that; it is the real-time bouts of fear and greed that are very supplementary to each other in the stock market. It is what makes the stock market rationale, volatile and successful. Investing involves knowing when to stop and when to channelize your emotions while investing and understanding the finances. At the time, when market appeals are eroding; investors’ confidence is vanishing and the trade fortunes are getting out– It is the time when the safest and guide to sane investment decisions are made.
In his book, he has talked about the opportunities that one must see while others are falling into the pitfalls.
Parag Parikh – Early Days
Parag Parikh is known as a polio-stricken child in his early childhood. He has built himself from nothing. He is the best-regarded value investor. He had the potential to recognize and deal with equities. He also has a very loving family. It is said that his mother and wife sold their jewelry to get the points needed to secure a broker’s card.
Parag Parikh was among the shareholders in Berkshire Hathaway, which is the Warren Buffett Annual meeting. He died later that day.
Parag Parikh’s Career
Parikh started his career in 1979 and he aimed to become a broker subsequently. In 1990, after the Indian market was opened to foreign investment, he gained popularity because of his insightful research.
Facts on Parag Parikh
1) Parag Parikh equity is a long-term equity fund. It is one of the best fund strategies. It allows the true value investing strategy in every mutual fund industry.
2) The equity gives around 30 to 35% allocation to international equity. In the portfolio Amazon, Google, Facebook is the main stock that generates higher returns. While in India, demonetization affected the Indian equity market but not the US market. Thus, the downside was limited in his stocks.
3) Parag Parikh is the only AMC that runs one equity fund. Meaning that the fundraiser has a focused mindset to deliver good returns to their unitholders. Recently, they also launched their tax-saving schemes while holding equity.
4) In every unit meeting holder; inside the given portfolio are some questions and answers which are very exceptional. This shows that unitholders matter a lot to the company.
5) Recently, they also improvised their portfolio by adding terms of ITC.
Conclusion – Parag Parikh
There is plenty to learn from his journey and books, especially if you are getting started as an investor. Do read his books, and go through the philosophy of their fund management company, PPFAS Mutual Fund. It is currently chaired by Neil Parag Parikh.