Father of Indian Value Investing.
Mentor and Guide to many.
If you got it right. Yes, we are talking about Mr. Chandrakant Sampat - Father of Indian Value Investing.
Born in 1929 in a Gujarati family, Chandrakant Sampat was a private man who stayed out of the media’s attention. He began investing in the Indian markets at the age of 26 after leaving his family business in 1955. His disciplined and long-term approach to investing earned him a reputation as a highly respected figure in the financial world.
Sampat’s strategy was to hold onto stocks for decades, a patient approach that’s rare among investors today. He achieved significant success by identifying high-growth companies early on. In the 1970s, when the government’s Foreign Exchange Regulation Act (FERA) forced foreign companies to sell shares at low prices, Sampat seized the chance. He invested in companies like Gillette, Nestlé, and Hindustan Unilever, even before they became investor favourites.
Chandrakant Sampat is considered as one of India's most successful investors. He lived in Worli, Mumbai, and his net worth had been estimated to be worth more than Rs. 500 crores.
Interestingly, despite his success, he led a very simple life in Mumbai. He didn't own a car and prefers to travel by public buses. He stayed active by jogging at Marine Drive, practising yoga, and lifting weights.
In Feb 2015, Mr. Sampat passed away at the age of 85 in Mumbai.
Parag Parikh considered Mr. Sampat as the Warren Buffet of India. “If you listened to him, the only thing you would get is wisdom.” Parikh adds.
Here is what veteran investor Ramesh Damani said in an interview about Chandrakant Sampat -
“Chandrakant Sampat was much ahead of his time. He used to not only read the general publications but he was a guy who talked to us about OID which not even many foreigners knew about - Outstanding Investors Digest. In fact it was an amazing thing that when you read about buy stocks when there is blood on the street, here was a guy in 1984 that day Indira Gandhi was assassinated, there were riots in Delhi, we were young guys running down on 27 storey stock exchange not knowing what is the future of our careers and we meet this man and ask him, what do you think? Here this guy is telling us to buy shares of Mico which is Bosch today and we were stunned. We did not expect him to tell us what to buy, we thought about what would happen to the country. He said it is sad that Indira Gandhi has died but she can die only once and you won't get Mico at this price again. The guy really had some kind of temperament.”
Do you Know?
Chandrakant Sampat was once the largest individual shareholder in Hindustan Unilever Ltd.
It is his sheer knowledge of the markets and business in general that mesmerises.
Sampat said - “We live in a world of continuous discontinuity. To be successful in investing, one has to see the continuity within the discontinuity because continuity is appreciation. Coke and Gillette have been around for many many years, and they are likely to be around for many more. I can't say that with any degree of certainty for technology, where the rate of obsolescence is very fast, where things change at warp speed."
Lessons on Investing from Chandrakant Sampat
1. Invest in Things That Last
Sampat believed that good investments are in companies that will stand the test of time. For instance, brands like Coca-Cola and Gillette have been around for decades and will likely continue to grow. On the other hand, tech companies often change quickly, and their success may not last long.
Sampat’s golden rule → Invest in businesses that age like fine wine, not like yesterday’s tech gadgets.
2. Look at the Big Picture, Not Just Numbers
Instead of focusing on current prices, Sampat focused on the long-term growth of a company. For example, he noticed that only 10% of people in India used twin-blade razors compared to 33% in Bangladesh. So, he predicted that if India catches up, Gillette's business could grow significantly. This kind of thinking helped him see opportunities others might miss.
Citing an example he said -
“I don't believe in valuations. I follow a migrationary path for the companies I invest in. We must be able to visualise the future. In 1979, Hindustan Unilever was a Rs.140 crore company. In 2013, its sales were Rs. 27,000 crores. Today we all know where HUL stands- a 5 lakh cr+ company with a sales of 60000 cr.
Thus, only a migrational thought process would have shown that and not a valuation.
3. Use Money Wisely - Cash is King, Don’t Waste It
Sampat liked the companies that grow without needing a lot of money. For example, imagine a local bakery that keeps improving its recipes and attracting more customers without buying expensive equipment. Sampat prefers such businesses and believed any extra money should be shared with shareholders instead of being spent unnecessarily.
Sampat loved companies that grow like bamboo—steady, fast, and with very little water (or money). Think of a bakery that just adds new flavours instead of splurging on gold-plated ovens.
4. Keep It Simple - Less is More
Why juggle 50 stocks when you can focus on 10 winners?
He believed in focusing on a small number of good investments—about 8-10 companies at a time. This way, if one of them does very well, it can make up for any losses.
He said → “If you spread your investment out in many companies, the fact is many of them will go wrong and very few will come right. So, it will be squared out. But if you are in eight-ten companies, even one giving you everything, will cover your wealth.”
5. Buy When Others Panic - Embrace the Chaos
Sampat believed panic in the market creates great opportunities. When prices drop because people are scared, it’s often the best time to buy. Imagine if a brand-new gaming console was sold at half price because no one wanted to buy it. That could be your chance to grab a great deal.
He said - “Panic is a word I like. It is my best friend. The dictionary meaning of panic is a situation that does not last long. It gives you an opportunity to pick up a good stock at a throwaway price.”
6. Understand what you buy
He only invested in businesses he understood ones that make simple, useful products like toothpaste, snacks, or medicines. For example, companies like Nestlé and Hindustan Unilever make everyday products that people will keep buying, no matter what.
If a company makes stuff your kid could explain like soap, biscuits, or shampoo—it’s Sampat-approved. Forget those complex tech startups; he sticks to things that are as obvious as “people need toothpaste.”
7. Live Tiny, Think Mighty
Sampat’s motto was: “Frugality beats all inflation.” This means spending less is the best way to deal with rising costs. Despite his wealth, he lived simply and believed in focusing on knowledge and imagination rather than flashy lifestyles.
He’s proof that you can quietly build an empire without a flashy lifestyle. Focus on ideas, not brands!
Key Takeaways -
Stick with timeless brands – Think Coke, not fidget spinners.
Play the long game – Invest like you're ageing wine, not chugging soda.
Pounce during market panics – Fear equals discounts, and Sampat loves a sale.
Focus on simplicity – If you don’t “get” the business, don’t buy it.
Spend smart – Fancy doesn’t equal rich; wisdom does.
Conclusion -
→ Investing isn’t rocket science - it’s about staying curious, keeping calm, and dreaming big!