Prominent stock market figure Mukul Agarwal has revealed the pivotal moment that transformed his financial journey from short-term trading to building a massive long-term investment portfolio. The catalyst was a profound realization during the historic 2003-2007 bull run in Indian equities.
The Epiphany That Changed Everything
During that explosive market period, where stock prices soared by 10 to even 100 times, Agarwal was successfully trading but achieving returns in the range of 10-20%. Watching the monumental wealth being created around him by patient investors, he began to question his own methods. "I thought—what am I doing? I’m wasting my time," he confessed in a resurfaced video on social media platform X. This stark comparison between his trading gains and the exponential returns of long-term holdings sparked a fundamental shift in his mindset.
He strategically used the market collapse of 2008-09 to execute his new philosophy, moving his capital decisively into long-term investments. Today, his approach has borne extraordinary fruit. Agarwal's portfolio is spread across 170-180 companies, and data from Trendlyne shows he holds a stake of 1% or more in 70 listed firms. His disclosed net worth now exceeds a staggering ₹6,843 crore.
Trading and Investing: A Complementary Duo
Despite his shift, Agarwal does not advocate abandoning trading altogether. In fact, he credits his initial success to it, having made his first crore through active trading. He presents a nuanced view where both disciplines reinforce each other. "I believe no one can become a good investor unless they trade, and no trader can become better without understanding investing. They complement each other," he stated.
He clarifies the core distinction lies in the scale and timeline of returns. While trading might yield 10%, 20%, or even 50% profits, investing unlocks the potential for 1,000% or 10,000% gains over periods spanning 10, 15, 20, or 30 years.
The Buffett-Inspired Philosophy: Buy Businesses, Not Stocks
Central to Agarwal's strategy is a principle immortalized by Warren Buffett: buy businesses, not just stocks. He advises investors to seek out companies they believe have the durability to thrive for 50, 100, or even 200 years. The ideal approach, according to him, is to buy with the intention of never selling. "You sell only if you need money or if you find a much more compelling opportunity with significantly higher return potential," he advises.
Agarwal also highlights the role of continuous learning. He attributes part of his journey's ease to the rise of electronic financial media, which provided global insights. His key advice for aspiring investors includes:
- Reading extensively from investing books.
- Following market experts and gurus on platforms like X (formerly Twitter).
- Consistently listening to and learning from marquee investors.
He frames investing as a lifelong journey filled with learning through market cycles. "You’ll see market cycles — ups and downs — and keep learning. It’s fascinating," Agarwal concludes, reminding everyone that patience and perspective are ultimate virtues in the quest for wealth creation.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
