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Parikh was in Omaha for Warren Buffett's Berkshire Hathaway meet
Dalal Street veteran and one of the foremost behavioural investment gurus in the country, Parag Parikh has died in an accident in the United States.
He was in Omaha for Warren Buffett's 50th year at Bekshire Hathaway.
A local news report said that the accident happened on 3 May when his car collided with a truck in the early hours of the morning.There were four passengers in the vehicle -- Parag Parikh, his wife Geeta Parikh, and Rajeev Thakkar and Raunak Onkar - members of his investment company.
The deceased and his wife were in the passenger seat. His wife was in a serious condition, according to a new report. The other two passengers were discharged after being treated for minor injuries, it said.
"Police said the Jetta was eastbound on Shirley Street when it stopped at a stop sign at 63rd. Believing the way was clear, Thakkar accelerated into the intersection and the Jetta’s passenger side was struck by Vacek’s pickup," reported Omaha.com.
Parikh is the second veteran investor India has lost in 2015. Chandrakant Sampat passed away in February at the age of 86.
In fact, Parikh's entry into the stock market was because of some advice from Sampat. Parikh was morose after his business idea faced rejection. Sampat showed him another path.
"He agreed I understood businesses but contended there was a better way to participate without subjecting myself to the vagaries of raw material shortages, regulatory capriciousness and so on. Instead, I could choose to participate in a bouquet of businesses by investing in companies listed on the stock market. If ever the fortunes of the businesses change, just sell the stock. This could not happen in an Indian manufacturing concern, where closure was as difficult as starting up. These words of wisdom led me to the stock markets," Parikh had written of those early days.
He started his career as a sub-broker in 1979 and was looking to become a broker afterwards. But entry into the closed world of the broking community was an expensive affair. His wife and mother sold their jewelery to help him raise the necessary money.
The Indian markets were opened to foreign investors in the 1990s after liberalisation. Parikh was popular on account of his insightful research. He stayed away from technology stocks through the dotcom era, even as stocks doubled and tripled in a heartbeat. He also continued to learn through the years, attending Harvard around the time of the dotcom bubble.
He recently surrendered his broking license in favour of starting an asset management company. Parag Parikh Financial Advisory Services (PPFAS) morphed into PPFAS Asset Management Company in 2014.
He had a childhood attack of polio but was an active golfer. He also swam for exercise.
His last tweets were all about Buffett; including the following- 'Investment ability is important, but being a good person is essential'.
Photograph, courtesy: Parag Parikh Financial Advisory Services
