Decoding Raamdeo Agrawal Wealth Creation Study with Excel

Raamdeo Agrawal’s Wealth Creation Study

Understanding the world of stocks can be tough, especially for newcomers. To many, it may seem like navigating through uncharted territory! But here’s the good news – you don’t need a finance degree or years of Wall Street experience to become a successful investor. With the proper tools and knowledge at your disposal, you can successfully create wealth in India’s bustling stock market. One such tool we will discuss today is Microsoft Excel. Let us decode the wealth creation study of Raamdeo Agrawal with it.

In today’s blog post, I am going to share how two dynamic individuals decoded Mr Raamdeo Agrawal’s philosophy and created an entire portfolio based on his heralded QGLP framework using MS Excel. We have described this process in four simple steps anyone can replicate at home!

Who is Raamdeo Agrawal?

Raamdeo Agrawal isn’t just another name in India’s stock market; he is one man who has built an empire worth Rs 2,000 crores from scratch via intelligent investing strategies. An icon with widespread influence over developing investors across the country, he shares his wisdom acquired from practical implementations that aren’t inspired by mere theories. He is a co-founder of the brokerage house Motilal Oswal.

Mr Raamdeo grasps each newcomer investor’s attention effortlessly due to his incredibly simple yet robust approach towards wealth creation — Quality (Q), Growth (G), Longevity (L), and Price (P). Does it sound too technical? Let me simplify.

Understanding Wealth Creation Study of Raamdeo Agrawal – The Four Pillars of Success: QGLP

Quality

The term “Quality” refers not only to financial business performance but also to factors such as business ethics and transparency in practices followed by a company’s top governance body which reflects managerial competence along with credibility essential for investment decisions.

Growth

Merely placing trust in quality companies isn’t enough; growth plays quite an eminent role when considering long-term investments as indicated by profit after tax (PAT) figures & net sales etc.

Longevity

Longevity indicates if the company can maintain its competitive edge in stiff market conditions and keep growing over a longer time horizon.

Price

Last, but definitely not least is price. When discussing prices, Mr Agrawal emphasizes the importance of a ‘margin of safety’. Essentially this suggests buying good companies when they’re cheap to increase potential gains while minimizing downside risk.

Perhaps one life lesson that emanates from his wealth creation saga resonates strongly with long-term investors; it’s about staying put even during difficult times such as witnessing their portfolio value fall by nearly 50%. The key lies in learning how to deal with loss; once you master this, your path towards substantial wealth creation opens wide up!

Decoding His Philosophy

Outlining Raamdeo Agrawal’s wealth creation study was challenging yet rewarding. Leveraging the technology (specifically Microsoft Excel), we were able to convert paper strategies into practices without any guesswork resulting in objective decision-making aspects while setting up our very own stock market portfolios.

While most would expect high-tech algorithms demanding considerable finance experience at play here – allow me to enlighten you: All you need is concise knowledge about metrics YOU find important around Quality, Growth and Longevity! Forget age-old manual methods filled with unending Excel sheets leading nowhere logical!

Did I hear someone say trading proficiency and familiarity with hardcore financial tools? Nope! Not needed anymore. Looking for a user-friendly toolkit taking care of all complex calculations ignorance? Yes! That’s our MS Excel method alright.

Step-by-step Guide using MS Excel:

Decide on metrics: We chose Promoter Holding>50%, ROCE>15% (shows quality business), consistent Sales growth and profit growth > 5 years (indicating strong growth aspect). The PEG ratio should ideally be below ‘1’ where the Market cap is preferably >1000.

Coding the Wealth Creation Study of Raamdeo Agrawal on a Screener Website

We now code it into Screener.in website.

Coding QGLP Method in Screener Website
Coding QGLP Method in Screener Website

For our future use, we can also save the screener giving it a name. Here I named it “Raamdeo Agarwal Method”.

Saving Raamdeo Agarwal Method Screener
Saving the Query

Run the Query: Next, we ran the query and we got a list of more than 120 companies.

Raamdeo Agrawal's Wealth Creation Study
Screener Query Output

Using MS Excel for the Wealth Creation Study of Raamdeo Agrawal

Get the data into Excel: Now investing in so many companies is impossible. Hence we need to get the best companies out of the list. Hence, we tried to export the data as Excel. But as our subscription to the Screener website is a free one, we could not export it directly.

Screener.in Pricing
Exporting into Excel Requires an Active Subscription

Copy your data: We simply transfer all relevant data manually and copy it into Excel. This list we sort as per the Return on Capital Employed or ROCE column.

Raamdeo Agrawal's Wealth Creation Study - Copy the Data
Copy the Data

Before copying make sure we have all required columns. Initially, we did not have the PEG ratio and hence we added the column from the Edit Columns option.

Adding Required Columns in Screener.in
Add All Required Columns

There is more than one page, hence, we need to copy the data from all the pages. We can click Next and go to the next pages one by one.

Copy All the Pages
Copy All the Pages

Paste into MS Excel: Finally, after pasting all the data we got into our Excel. We can delete any unwanted rows that get copied automatically.

Raamdeo Agrawal's Wealth Creation Study - Our Excel is Ready
Our Excel is Ready

Sort the Data to Get Desired Analysis

Sort the Data using MS Excel Features: Now, we will guide MS Excel to form an equal-weighted composite rank for all stocks based on our input. Balance the rules according to metric importance, eg: Highest ROE but lowest PEG ratio. We select all the data and use the sort feature of Excel to get the companies with the highest ROCE but the lowest PEG ratio.

Raamdeo Agrawal's Wealth Creation Study - Sort the Data into MS Excel
Sort the Data into MS Excel

We now have the sorted list. Suppose, we will invest only in the top 5 companies with the highest ROCE and the lowest PEG ratio. We have Ksolves India, Tips Industries, Waaree Renewables, Lloyds Metals and Dreamfolks Services.

Getting the Best Companies to Invest with MS Excel
Getting the Best Companies to Invest with MS Excel

Voila! You’ve got your investment list!: Simple and uncomplicated isn’t it?

FAQ

What is a wealth creation study?

A wealth creation study entails analyzing investment strategies and philosophies to gain insights, into how successful investors have generated wealth in the stock market. It encompasses studying the principles, approaches and techniques employed by investors.

What is the net worth of Raamdeo Agrawal?

Raamdeo Agrawal’s estimated net worth is Rs 2,000 crores. He has amassed his wealth through investment strategies and successful implementation over the years. His practical approach to building wealth has established him as a figure in Indias stock market.

What is a wealth creation plan?

A wealth creation plan refers to a strategy crafted to foster term financial security and accumulate assets over time. It encompasses setting goals creating a budget, prudently managing investments diversifying portfolios for risk management purposes and regularly assessing progress towards achieving desired outcomes.

What are some tips for wealth creation?

Here are some pointers to consider when aiming for wealth creation, in the stock market. Firstly it’s crucial to prioritize companies that uphold business ethics have practices and possess competent management teams. Focus on quality. Secondly look for stocks that exhibit sales growth and profit growth over years. This demonstrates their potential for success and growth. Moreover identify companies that can maintain an edge in challenging market conditions. Their ability to adapt and thrive is key.
Additionally consider buying stocks when they’re undervalued or available at a price with a margin of safety. This ensures you have room for returns.
Lastly remember the importance of staying invested for the term during difficult times. Patience and commitment are vital, in achieving goals.

Final Thoughts about the Wealth Creation Study of Raamdeo Agrawal

Now you have a handy tool that can also ‘teach’ how seasoned investors like Raamdeo Agrawal think while selecting their portfolios. However, remember one golden rule – NEVER blindly copy someone else’s strategy down to each holding. Every smart investor is distinctive in his thoughts, methods, goals & risk appetites which are extremely personal concepts.

But what’s stopping you from finding the right companies as your potential stock contenders or understanding better ways of doing so? So dive deep into this exciting method of intelligent investing influenced by experts such as Mr Raamdeo Agrawal himself!

Keep an eye out for our upcoming posts where we plan on decoding more market maestros’ strategies using modern technology because with the right guidance under proper light – even novices could shine brightly within India’s active trading space!

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Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely. Nowadays, he is also taking help of artificial intelligence for writing valuable contents for his readers.

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