In a resurfaced video on social media platform X, prominent stock market figure Mukul Agarwal shared the pivotal moment that transformed his financial journey. During the massive bull run of 2003-2007, when stocks soared by 10 to even 100 times, Agarwal had an epiphany about his own strategy.
The Turning Point: From Trader to Investor
While successfully generating returns of 10-20% through active trading, Agarwal realised his gains were dwarfed by the monumental wealth being created by long-term investors during the same boom. "I thought—what am I doing? I’m wasting my time," he recalls thinking. This powerful insight led him to fundamentally rethink his approach to the markets.
He strategically used the market crash of 2008-09 as an opportunity to execute his shift from a short-term trader to a committed long-term investor. This decision laid the foundation for what is now a colossal investment portfolio.
The Anatomy of a Massive Portfolio
Today, Mukul Agarwal's holdings are a testament to his patient strategy. His portfolio is spread across a staggering 170-180 companies. Data from Trendlyne reveals he holds a stake of 1% or more in 70 listed firms, with his total net worth exceeding ₹6,843 crore.
In the video, which Mint could not independently verify the recording year of, Agarwal is seen addressing young students, potential future investors and entrepreneurs of India.
Trading and Investing: A Complementary Relationship
Despite his shift, Agarwal, who made his first crore through trading, does not advocate abandoning it entirely. He presents a nuanced view where both disciplines support 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 explained.
He clarifies the core distinction lies in the scale and timeframe of returns. "In trading, you may make 10%, 20%, or even 50%, but in investing, you can make 1,000% or 10,000% — over 10, 15, 20, or 30 years," Agarwal said.
The Core Philosophy: Buy Businesses, Not Stocks
Central to Agarwal's investment framework is a principle famously championed by Warren Buffett: buy businesses, not just stocks. He advises seeking out companies you believe have the durability to survive for 50, 100, or even 200 years. The ideal approach, according to him, is to buy with the intention of never selling.
He suggests exiting a position only under two conditions: if you need the capital, or if you identify a significantly more compelling opportunity with much higher return potential.
Agarwal also credits the rise of electronic and news media during his early days for providing valuable global insights and expert opinions that aided his journey. For aspiring investors, he emphasises continuous learning. His recipe for success includes reading numerous investing books and actively following market experts and gurus on platforms like X (formerly Twitter).
He reminds everyone that investing is a long journey filled with market cycles. "You’ll see market cycles — ups and downs — and keep learning. It’s fascinating," Agarwal concludes, framing the process as a continuous educational experience.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
