Veteran Investor Parag Parikh, who was also one of the most famous and skilled investors in India, died in a car crash on Sunday i.e. May 3, 2015. Parag Parikh was on his way to attend an annual general meeting of Berkshire Hathaway, which is company owned by Warren Buffet.
According to media reports, 61 year old Parikh was sitting in the backseat of a car with his wife, when it collided with a pickup truck. The car was being driven by Rajiv Thakkar who also happens to be the chief investment officer in one of the companies founded by Parag Parikh.
Parikh and his knack with investment
Mr. Parekh was an alumnus of a Mumbai college & Harvard Business school. He started working as a sub broker in 1979. He was a huge supported of value investing i.e. buying undervalued stocks and he believed in taking up investments that were against the then market trends. He, therefore, used the bottom up approach for investment i.e. he focused on companies than sector and took his investment decisions basis on tjat.
In May 28, 2013 – he launched his own equity fund named as ‘Parag Parikh Financial Advisory Services Long Term Value Fund’. The unique thing about his company was that it runs only one scheme in which investors were asked to invest for long term with a minimum period of five years.
He supported the view that one must select right business to invest and then patiently wait for the ROI. He encouraged people to look for business to invest outside Sensex and Nifty. He looked for companies backed up by good management, well built business model, low debt, strong brand value and that offered good ROI.
He was also pioneer in Behavioral Finance which is a science that studies the human behaviour towards money matters and stock investing. He is also an author to two books: Stocks to Riches – Insights on Investor Behavior & Value Investing and Behvioral Finance: Insights to Indian Stock Market Realities.
He is also known as India’s Original Investor.
It is a great loss to the country. He was a precious asset and an inspiration. May his soul rest in peace.