Nithin Kamath started investing when he was just 17 years old.
He learnt the ins and outs of stock trading and investing with hard-earned experience, learning the ropes on his own and even going bust at one point of time.
“If you are a novice to the stock market, you should go in for mutual funds. But the problem with mutual funds is that they can never make you wealthy. However, it is a great way to get started. But once you have your money on the table, you should start following stocks. Today, people don’t have the bandwidth to do too many things, but if a person can focus on companies in an industry he works in and understands, he has better odds of finding that next Infosys or Reliance of the world,” says Nithin Kamath, founder of online discount broking firm Zerodha.
These words are worth their weight in gold for any novice looking to tread in the market. Nithin began working at night in a call centre to trade during the day, climbing up the ladder with Reliance Money as a sub-broker, to finally making his big kill by shorting (betting against) the market in 2008, when it crashed.
A year later, with money no longer a prime concern and his younger brother Nikhil as his partner, Nithin focussed his energies on taking a shot at a retail brokerage firm around the idea of discount broking.