Chandrakant Sampat - Mastermind & Great Human


(Left this forum) #21

Just happen to see the thread, you have named the thread very appropriately. Indeed he was one of the greatest this country has produced. But to understand the legend perhaps we need to travel back a bit.

  1. Chandrakant Sampat was definitely far ahead of his time. He was buying when prices were controlled by CCI (Capital Controller of India) , pre-SEBI era. He focused on cash rich company, easy to understand business model. With FERA lot of these companies suddenly started getting fair valuation. He made tonnes of money from these so called FERA stock which included P&G, Lever etc.
  2. We again saw Mr Sampat (I saw one article with Flame I guess) was buying stocks when blasts were taking place all across Mumbai.
  3. There is late era where he was disinterested in stocks and moved to cash mostly.

His four significant thing was : 1. Least capital expenditure 2. ROCE>25%. 3. No borrowings/no future cost 4. High dividend yield.

This interview is worth watching, a rare occasion when doyen appeared on TV.

But this doesn’t define Mr Sampat, he hand hold hundreds of investors if not thousand. He was regularly talking to budding people from do’s and don’ts. Then of course regular speeches in Hindu Gym Khana Club. Lots of Sampat fans can go on whole night about him.

Money maker and deal maker will come and go. We wont see that frugality, philanthropy or teachings. Indeed he was the true light from Haji Ali, all his life he lived there as well.


(Left this forum) #22

My Guru was constantly trying to drive Chandrakant Sampat philosophy with all his admirers. Few of them below, though I started reluctantly, enjoyed them later. Just got something from my diary, sharing here:

  1. Guruji, I should pay you some Dakhsina (fees) though don’t know what should I give? He replied its simple give 25% of your dividend to this xxx trust. I said Guruji it’s my money, I know a lot of people in this country are poor. But by giving more than I can chew I may fall into poor. He insisted, no questions asked. Next year I told him, it worked; it came back as 4. He said
    good, now give 50%!

  2. I was struggling with some random idea, Guruji said switch of the AC. I said it’s hot and humid. That’s ok, just switch it off and open the window. Within 30 minutes I was almost about to untangle the thread.

  3. I asked anything else you want me to do personally? He asked me when is last time you travelled by local bus? When is last time you travelled by second class sleeper? I said may be sometime. Ok do it four times in a year at least, your compounding will shoot. Oh yes it worked!! Now I am regular in Bengaluru local bus.

  4. I said Walkeshwar looks so nice, sad to see slums every where. He said you know ISKCON promise to feed a child 1000 bucks per year even partially. That means a square feet here can feed 65 child for a year. This was when Malabar hills was around 55-75K psqft.

  5. I said without company XXX perhaps it would have been impossible to think of doing investment full time. He said, no it’s not company XXX but the wishes of so many people with you perhaps. Keep writing, keep educating, keep helping; money is only a unit of account.


(Sahiriar) #23

ITC should not be compared with a Hul, Dabur etc. 80% of ITV’s revenue still comes from cigarette. So it is a cigarette company.