Mumbai: FPJ President Abhishek Karnani felicitated veteran investor and Motilal Oswal Financial Services Chairman Raamdeo Agrawal at the FPJ-CareEdge Annual Report Awards, where Agrawal highlighted that strong corporate governance, ethical leadership and transparency remain the foundation of long-term wealth creation.
Speaking during a conversation with senior journalist Vivek Law at the FPJ-CareEdge Annual Report Awards, Agrawal reflected on how Indian markets and disclosure standards have evolved over the past three decades. He credited improved transparency, stronger regulations, and better governance practices for transforming India’s capital markets into a more mature ecosystem.
“Compounding is not in years, compounding is in decades.” – Raamdeo Agrawal
Agrawal said governance may not always appear directly in financial numbers, but it remains closely linked to long-term business success. According to him, companies that consistently create wealth over decades are usually those maintaining high standards of governance and accountability. Referring to Motilal Oswal’s wealth creation study, he pointed out that businesses like Bharti Airtel, Titan and Hero MotoCorp became long-term wealth creators because they combined strong business models with disciplined management practices.
Sharing his investment philosophy, Agrawal said successful investing depends on identifying an outstanding business, backed by strong management and reasonable valuation. He remarked that once investors identify the right business and leadership, most of the investment decision is complete, while valuation acts as the final layer of confirmation.
The veteran investor stressed that long-term investing requires patience and trust in management quality. “Compounding is not in years, compounding is in decades,” he said, explaining that true wealth is created by staying invested in quality businesses over long periods rather than focusing on short-term market movements.
Agrawal also explained how governance standards can often be understood through financial data and operational behaviour. Metrics such as receivable cycles, profitability trends, margins, and competitive positioning provide important signals about a company’s health and management quality.
Recalling one of his early investment experiences, Agrawal shared how he once visited an unlisted jewellery company in Kolkata to evaluate a potential investment. While the company presented a sophisticated boardroom to investors, the actual working conditions of employees at the manufacturing unit were poor. The experience raised concerns about the company’s governance culture, leading him to avoid investing in the business. According to Agrawal, the company eventually went bankrupt within two years.
Commenting on market volatility and concerns around former US President Donald Trump’s policy impact, Agrawal described the uncertainty as a temporary “googly” for investors. However, he expressed confidence that strong businesses and entrepreneurs would continue creating value despite short-term disruptions.
