Meet the Small Cap Czar of India who redefined Value Investing

The following interview is with a personality who identify as  someone with a passion for living a great life. He offers services  and education to others on managing and investing money in the  stock market through his website www.manishgoelstocks.com. Let’s see how Manish Goel, a value investor, commenced his value investing  journey and became one of the leading small cap investor in the  country. 

Below are the excerpts of the interview.

Please introduce yourself to our readers and share your experience as a Value Investor.

By qualification, I am a Chartered Accountant. But, instead of opting CA practice, I chose Stock Market Investing as my professional career. I found value investing approach the best in the stock market compared to other approaches such as Technical Analysis or Growth story approach. The reason behind lies in the value investing approach, where you have a lot of margin of safety and the downside risk is minimum. Growth stocks are riskier compared to that, and Technical analysis-based stocks are most risky.

Kindly share the inception story. How and why did you start investing?

After doing my CA, in the beginning, I served as a Finance Manager in Ranbaxy Laboratories for four years. But then, I thought, what is the point of making money if my time is not free and quality of life is not there. So, I decided to make stock investing as my main career so that my time remains free, and alongside making money, I can also live a quality life. Here in the stock market, instead of me, my money works, and my time remains free for more creative, quality, and productive thinking.

Describe your investing strategy and portfolio organization. What valuation methods do you use? Where do you get your investing ideas from?

Basically, I am a Value Investor/Fundamental Investor. I do not believe in Technical analysis because I think that charts cannot decide on a company’s future. There are a lot of factors (PE, ROE, ROCE, Dividend yield, Debt Equity, etc.), which I use to establish that a particular stock is undervalued or not. To get investing ideas, I start with a stock screener to filter out overvalued stocks, and then I further do deep research in my own way to identify the best and safest undervalued stocks.

What inspired you the way you think, or someone who mentored you? What is the most important lesson learned from them?

Actually, the biggest teacher in my life has been my own mistakes. After burning my fingers a few times in the beginning years, I did a lot of introspection as to why that happened, and slowly I found out a lot of ‘Dos’ and ‘Don’ts of the stock market. The most important lesson I learned is that we should not focus on the noise or herd mentality in the stock market and should focus on the fundamental strength of business in which we are investing.

According to you, how has the investing approach changed over the years?

Markets are evolving, and so are investors and investing approaches. What was considered to be the safest and foolproof investing approach a few decades ago, is not the safest strategy now. Success in the stock market investing is all about thinking and remaining ahead than others. Investing is an art and science. There is not a fixed set of principles to follow.

For example, Yes Bank, which was a darling of investors till 2018 but had to be taken over by the government in 2020. Investors need to be alert as to what new developments are taking place and improvise their investing strategies according to that.

My main focus has been to find stocks that have the potential to become Multibaggers, instead of looking for 30-40% returns. I was able to identify some really big multi-baggers like Swiss Glascoat, Chaman Lal Setia Exports, KPR Mills, Mold-Tek Packaging, Maithan Alloys, etc. Swiss Glascoat multiplied 200 times in 7 Years after my Buy recommendation in 2014.

Also, in 2017 the trademarks department of Govt of India gave us the ‘Exclusive’ rights to use the word ‘Multibagger.’ That means no other person can even use this word ‘Multibagger.’ I also got ISO:9001 certification for our Broadcast Channel.

What advice can you give to entrepreneurs who seek to set their grounds in the stock market field?

My advice to entrepreneurs will be to make stock market research more scientific and research-based instead of news/noise based. Keys to success in this business are transparency, integrity, and hard work. No fake promises should be made to the clients, and investment advice should be given considering the client’s financial and social position. New entrepreneurs should follow all types of guidelines and rules.

How did you embrace your failure? Did your failure change you in any way?

There is a famous saying. “I never lose. Either I win or I learn”. So, I kept on learning from the inevitable initial mistakes at the beginning of my career.

Those failures made me more alert and conscious instead of making me overconfident.

According to you, what is the most influential factor in your business’ success?

Long term investing vision of Warren Buffet always impressed me. Long Term Investing in undervalued quality fundamentally strong companies gives you a lot of margin of safety. I always tried to create the highest returns for clients with minimum possible risks.

 About the Leader

Manish Goel is the Founder of www.manishgoelstocks.com. He is a  Chartered Accountant by qualification and is a person with a long  term vision and a passion to excel in whatever he does. 

After becoming a CA, he worked as Finance Manager in Ranbaxy Laboratories Ltd. from 2006 to 2010. He gives quality of life much more importance and that’s why he resigned from his job in 2010 to live his passion. Then he made stock investing his full time career and started guiding other investors also on social media.

Mr. Goel has helped investors in making big wealth through his big Multibaggers like Swiss Glascot, KPR Mills, Chaman Lal Setia Exports, Mold Tek Packaging and many more. In 2016, he started  his Telegram Broadcast Channel so that he can help people on larger scale in becoming successful investors/entrepreneurs and live a quality life at the same time

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