When the Indian market multiplied many times between 2003‑2007, trader Mukul Agarwal realized his 10‑20% trade gains were tiny compared to the wealth created by long‑term holders.
From 10% Trades to 1,000% Returns
Agarwal decided to change his strategy after the 2008‑09 crash. He now holds shares in about 170‑180 companies, with sizable stakes (1% or more) in 70 of them, giving him a net worth of over ₹6,800 crore.
Trading and Investing Work Together
He says you can’t become a great investor without some trading experience, and a trader improves by learning investing basics. The main difference is patience: traders may earn 10‑50% in a short period, while investors can see 1,000% or more over decades.
Buy a Business, Not Just a Stock
Following Warren Buffett’s advice, Agarwal looks for companies he believes will survive 50‑100 years. He buys them to hold forever, selling only if he needs cash or finds a far better opportunity.
Simple Ways to Build Long‑Term Skills
- Read books about investing and business fundamentals.
- Listen to experienced investors on platforms like X (formerly Twitter).
- Watch financial news and learn from global market experts.
- Start with companies you understand and can hold for many years.
Keep Learning Through Market Cycles
Investing is a long journey. Markets will rise and fall, but each cycle offers a chance to learn and improve.
Remember, this is perspective, not a prediction. Do your own research and consider consulting a certified advisor before making any investment decisions.