Take Inspiration and Build a Path to Wealth by Investing like Ashish Dhawan

There are 161 million BSE registered investors in India. However, there are very few individuals who are able to leave a mark on the stock market landscape. One such investor is Ashish Dhawan. He is an Indian philanthropist who also runs one of India’s largest Private Equity Funds. 

Career Milestones 

After graduating from Yale, Dhawan was employed on Wall Street at Wasserstein Perella & Co., where he was the only Indian analyst. He then went on to join McCown DeLeeuw & Co., a small private equity firm in California.

After his MBA in 1997, Dhawan took a position at Goldman Sachs in the Risk Arbitrage Group. At 29, he chose to leave New York and return to India. In 1999, Dhawan, along with his Harvard Business School classmate Raj Kondur, co-founded ChrysCapital in Mumbai.

He is also the founder and CEO of "The Convergence Foundation". It is an organisation dedicated to creating institutions and impactful enterprises to speed up India's economic growth in a fast, inclusive, and sustainable way. 

Ashish Dhawan’s Investment Portfolio 

Besides his philanthropic efforts, he has been investing in the Indian stock market for over 10 years. 

Following his well-earned success, Dhawan developed a talent for picking stocks that outperformed the market. His portfolio spans various sectors such as hardware, software, and computers. Dhawan's investments demonstrate versatility, covering areas like FMCG, healthcare, IT, and banking. He is one of the premier investors that many retail investors look up to. 

Here is a snapshot of what his Investment portfolio looks like:

Since the December quarter, Dhawan has reduced his investments only in RPSG Ventures Limited by almost 0.4%. As of today, Shwan’s Net worth is almost Rs 3968.98 Crore. Here is a breakdown of the ownership percentage:​​​​​​​​​​​​​​

 Investment Strategy 

Building a net worth of almost Rs 4000 Crores is not easy. It takes time, patience and strategy. Let’s find out how Dhawan managed to build such a massive Investment portfolio by looking at some of the strategies that he practised over the years, 

Diversify your Investments smartly

The Dot Com bubble was a tragedy that took place on Wall Street. Dhawan too had invested in many of these online companies and was affected. However, he managed to recover due to the profits from his diversified investments. The losses he incurred in telecom were offset by significant gains from his investments in other sectors.

Have a Long-term Approach

Markets are inherently volatile and a short-term outlook can make investors vulnerable to fluctuations. Instead, planning and investing for the long term can yield higher returns and mitigate short-term market volatility. 

Dhawan purchased shares of Mphasis at Rs 350 each in 2001. Although the price dropped to Rs 50, he maintained his conviction and eventually saw his investments multiply. Today the share price of Mphasis stands at Rs 2,440.95.

Treat Stock Trading like a Business

A well-researched investment portfolio can generate substantial returns and compensate for any losses from other investments over time. Don't overload your portfolio with too many stocks. Instead, aim for a focused and concentrated portfolio with carefully selected, well-researched stocks.

The "Rags to Riches" dream can become a reality if you are willing to put in the hard work. The market responds to how you approach it. Treating stock market investments like a business will yield business-like rewards. Whereas, if you treat the market like a gamble, it will result in the exact outcomes of gambling i.e., Uncertain. 

Conclusion

Dhawan’s journey through the financial world and his philanthropic efforts have made a lasting impact on the community and showcase his smart foresight. He is a perfect example for young professionals who want to build wealth and are willing to put in the effort. 

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