Well-known stock market investor Mukul Agarwal traces his shift from short-term trading to long-term investing due to a simple but powerful realisation during the 2003-2007 stock market boom.
As stocks multiplied 10 times and even 100 times during that period, Agarwal began questioning his own approach towards the stock market. As a trader, he realised he was consistently making returns of 10-20%. But that felt minuscule compared to the wealth creation happening over the long term.
“I thought—what am I doing? I’m wasting my time,” he recalls in a video that has resurfaced on the social media platform X.
This insight stayed with Agarwal, who utilised the 2008-09 market crash to shift his investing approach from short-term to long-term. He says his portfolio now spans across 170-180 companies. According to Trendlyne data, he holds 1% or more stake in 70 listed companies, with a net worth of over ₹6,843 crore.
Mint could not independently verify the year in which the video was recorded, wherein Mukul Agarwal is seen addressing young students who could emerge as budding Indian investors and entrepreneurs.
Trading, investing are complementary, says Agarwal
Agarwal, who says he made his first crore via stock trading, doesn’t outrightly call for abandoning trading. In fact, he believes that no one can become a good investor unless they trade.
“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,” Agarwal said.
The real difference between the two is the scale and patience of returns. He said that 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.
Central to his investing philosophy is buying businesses and not stocks — a principle associated with Warren Buffett. He advises buying businesses you believe will survive for 50, 100, or even 200 years, and ideally buy them so never sell. “You sell only if you need money or if you find a much more compelling opportunity with significantly higher return potential.”
Agarwal shared that his investing journey was made easier thanks to electronic media, as news TV channels were then launched and offered insights around global investing and experts.
He believes reading and listening to marquee stock investors is key to achieving success in the stock markets. He advises reading a lot of investing books, relying on platforms like Twitter (now X) and following the handles of various market gurus and experts.
Investing is a journey and will take years. “You’ll see market cycles — ups and downs — and keep learning. It’s fascinating.”
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.
