Veliyath Investment Strategy: A Closer Look at Porinju's Winning Tactics

Stock Trade is a game of luck and patience. The Indian Stock Market often features stories of investors coming from very humble backgrounds. The journey of Porinju Veliyath is an inspiration for all those who want their hard work invested. 

Porinju Veliyath, also titled ‘Small-Cap Czar’ by The Economist, faced many twists and turns. His life as an investor had been full of learning and experimentation.

Over time, he faced much disapproval and finally reached fame. He learned a lot from his first investment and motivated others to keep learning each time.

Early Life

Porinju Veliyath was born in Kerala on 6th June 1962. He comes from a lower-middle-class family. He used to live in Village Chalakudy, near Kochi City. At 16, he started working along with his studies because of his family conditions. 

He graduated from Government Law College in Ernakulam. Meanwhile, he also worked in a Telephone Exchange with a Salary of 2,500 per month.

In 1990, he moved to Mumbai. He joined Kotak Securities and worked for four years as a floor trader. Later in 1994, he worked as Research Analyst and Fund Manager at Parekh Securities. He moved back to Kochi after spending almost a decade in Mumbai.

In 2002, he started Equity Intelligence, a Portfolio Management firm.

In collaboration with HUL, he serves as a director of Arya Vaidya Pharmacy, which produces a line of ayurvedic personal care items under the Lever Ayush brand.

The first step in Investment Journey

His investment journey began when he started his own business. He started making investments for his wealth. 

From the start of his investment journey, Porinju focused on lesser-known companies for investment. Although Geojit Financial Services, his first investment, was initially regarded as a poor penny stock, it ultimately proved profitable.

Later, his investment in Shreyas Shipping brought him a fortune. It helped him a lot in his investment journey and framed his strategy.

Veliyath Investment Portfolio

Porinju is known for his experience with investing in small-cap firms. He is followed by many who have just started their journey. He has often invested in some blue chip companies and saw past their rate of wealth maximization. 

Porinju owns 16 stocks in his portfolio, with an estimated net worth of Rs. 177.9 Cr as per Trendlyne.

This table includes data from other portfolio platforms.

Veliyath Investment Strategy

Contrarian Investment:

Porinju Velinath seems to be choosing the companies that have the potential but are out of favor in the market. In 2016, when every investor backed out from a sector, his prediction matched Warren Buffet. Later, even the biggest investor chose to invest in the same field.

Invests in Lesser known Companies:

Where you come across the same names in other portfolios, Porinju seems to be investing in lesser-known companies. He believes one should not focus on market capitalization when business is great. His patience with his investments has always proved to be profitable.

Diversified Portfolio:

Porinju seems bullish in diversified consumer and software service sectors. Porinju also invests in companies with a competitive advantage, strong management, and solid growth plan. A diversified portfolio helps him to minimize risks.

Value Investing Strategy:

He uses the same tactic that Warren Buffet does. Veliyath has always stated that he never hesitates to invest in lesser-known firms. He still looks at the value of his investment as his first investment. 

Wrapping Up

Porinju Veliyath has over 25 years of experience in investing. His hardships and experiences never set him back. He tries to learn from each of his investing decisions. He believes every investor should educate himself before taking a step forward in the investment journey.

According to him, Investors are likely to get trapped if they get excited and try to make fast money. He is known for his ability to surprise others by investing in diverse sectors, which often turns out to be valuable on his part. Porinju is one of the best investors, thanks to his value-based selections.

Thank you!