Part 9 of 43 in How to Invest Your Money: Lessons from the World’s Greatest Investors, Adapted for the Indian Investor← Part 8Part 10 →
This chapter shows how Indian investors and businesses have applied long-term investing principles over the past three decades. It helps readers understand compounders, systematic investment plans, and focused business ownership through Indian examples.
- HDFC Bank, Asian Paints, and Nestlé India rewarded investors who held strong businesses for decades.
- Long-term returns came from competitive positions, disciplined capital allocation, and management focused on business health.
- A monthly SIP continued through market crises and benefited from buying more units when prices were low.
- Avenue Supermarts shows the value of a simple, repeatable model and avoiding fashionable diversification.
- Successful private investors often concentrated on businesses they understood deeply rather than trading broadly.
The principles above are not abstract. They have been demonstrated by Indian investors and businesses over the past three decades.
Long-Term Compounders
Companies such as HDFC Bank, Asian Paints, and Nestlé India have delivered exceptional returns to shareholders who held them for decades. The common features were strong competitive positions, disciplined capital allocation, and management teams that focused on the long-term health of the business rather than short-term stock price movements. Investors who treated these as businesses they partially owned, rather than as tickers to be traded, captured the majority of the wealth creation.
The SIP Advantage
Consider a young professional who began a monthly SIP of ₹5,000 in a diversified equity fund in 2005 and increased the amount with salary hikes. Through the 2008 global financial crisis, the 2011–13 period of high inflation and policy uncertainty, and the 2020 pandemic, the SIP continued. By 2025 the corpus had grown substantially, largely because contributions continued when unit prices were low. This is the practical expression of patience and discipline available to millions of Indians today.
Quiet Builders
Radhakishan Damani’s success with Avenue Supermarts (DMart) shows the power of focusing on a simple, repeatable model and ignoring the urge to diversify into fashionable areas. Many of India’s most successful private investors have similarly preferred concentrated portfolios of businesses they understand deeply over broad, opportunistic trading.
Frequently asked questions
What are examples of Indian long-term compounders?
HDFC Bank, Asian Paints, and Nestlé India are examples of companies that delivered exceptional returns to shareholders who held them for decades.
How did the SIP example create wealth?
A young professional invested ₹5,000 monthly in a diversified equity fund from 2005 and continued through market crises. Contributions during low unit prices helped the corpus grow substantially by 2025.
What does the DMart example teach investors?
Radhakishan Damani's success with Avenue Supermarts shows the value of focusing on a simple, repeatable model and avoiding fashionable areas.
Why do some successful Indian investors prefer concentrated portfolios?
They prefer concentrated portfolios of businesses they understand deeply instead of broad, opportunistic trading.