Founder Strategic Alpha
Hello, I am Suyog Dhavan Full-time Investor, Trader, and Value Investing/Trading Mentor.
I am on a mission to change the wealth lives/fortunes of 1Lakh Individuals through our Flagship Mentorship Model. Helping them achieve Financial Freedom through our StrategicAlpha Value Investing/Value Trading Framework.
This blog is created to empower individual investors with Resources, Knowledge, Wisdom. Which is already helping many people to navigate success in stock markets.
Through the time-tested Approach of Trading and Investing, I have developed two processes Namely:
1)StrategicAlpha Multibagger Framework
2)Staregicalpha Value Trading Framework.
These Processes will help you achieve a lifestyle of Financial Freedom.
It was in the Year 1995, I was in 1st Standard.
My Dad My Inspiration
I have seen from close, how my father rose from nothing to a 10Cr Networth over the past 25 Years. This was possible only because of the business he did. I don’t think it would have been possible if he’d joined as an employee somewhere.
I would have never entered into markets if he hadn’t pushed me to do something new. My Dad is my Biggest Inspiration, who never pulled me back from doing something different.
He always used to motivate me for long trips on bikes which made me fearless of attempting something new. He has lived the lifestyle of financial freedom. I understood, at a very early age that, if he can do it, I can do it too.
I did my first business at the age of 11-12, where I used to make Diwali Lanterns and Used to Sell it to Dad’s Clients. Dad had around 200 connections. (Before Diwali, these people used to visit our home office either to take bonuses/gifts/ payments). Then I realized that it’s a good idea to buy lanterns at a lower price and sell them at a higher price than make and sell. I bought Diwali lanterns in bulk at Rs 25 each and sold them to my dad’s connections at Rs 50 each, also to people in the colony by going door to door. I made around Rs 3000 in the year 2002 in various such seasonal businesses. That’s how I learned trading business.
My dad gave me an opportunity to handle godown operations from the age of 15, but I used to only report it to my father. But after 1 year of observation, he promoted me and provided me the capital of 1 Lakh, and told me to purchase the iron scrap material from small clients. I made around 3 Lakh from this business by the age of 18. This was Trading Business Level 2.
My Dad was into Metals Trading, Metal Scrap(Which was considered as Waste). He used to sell the material to Rajkot based buyers where this material was a prime raw material for them. Here the idea of wealth from waste was deeply engraved in me.
On a similar note, I started searching for materials. which are considered as waste but by following some processes it can be used as raw material. Rajkot, Ludhiana were the markets where second-grade castings are produced, unlike Kolhapur where Auto Grade Castings are Produced.
I had a feeling that in the places where second-grade castings are made we can use low quality raw materials. So I turned towards Ferrosilicon, which is a raw material in foundries and steel plants.
Ferrosilicon is produced in parts of Bhutan, Meghalaya and North East, Pondicherry, and some parts of Bellary.
I thought, if waste from these Ferrosilicon Manufacturing companies is segregated, and cleaned from impurities, it can be used as a raw material. This idea worked after 1 unsuccessful attempt but in 1.5 years I made around 20 Lakh in this business. This business helped me understand the importance of finding value in discarded things, and make money from them ( Warren Buffet used to call it the Cigarette Butt Strategy). This was trading business Level 3.
Me at Snam Alloys Pvt Ltd Plant, Pondicherry- A Ferro Silicon Manufacturing Company
Snam Alloys Pvt Ltd- Plant
Waste to Wealth Idea That Made Me Money
Srikalahasti, Tirupati, Nellore, Pondicherry in Search for Waste to Wealth Opportunity
My Stock Market Journey
I started my stock market journey at the age of 16. For study purposes, my brother opened a Demat Account for real exposure of the business, because shareholders used to receive annual reports.
So I too got attracted to stock markets. I bought my first share of JP Associates ( Which is down 99% as of Today :-)). Made some money in Educomp Solutions (99% down now from those prices :-)). I developed an interest in understanding the business in-depth, and how a business makes money from an early age. This helped me a lot in stock markets. Whenever I used to visit Mumbai, I could see myself in high story buildings next to Nariman Point doing stock trading business.
As I mentioned earlier, I made around 20Lakh from my third business. However, I lost more than half of that money in stock markets because of the mistakes which a common investor/Trader makes. Such as:
- Over Trading
- Selling in Panic
- Leveraging and Doing F&O
- Selling out the Herbs and Watering the Weeds
- Averaging a Losing Trade and in turn, Losing More Money
- Investing in Penny Stocks, Hoping that these stocks will rebound. Thinking that it has come down 90%, how much more can it go down
- Hope Investing
- Not Cutting losses early
- Focusing on prices and not understanding the value of businesses
- Investing based on Tips
- Giving My Money to Manage and Loosing Entirely( Gave money to the person as he doubled my money in quick succession, didn’t understand then how much risk he was taking per trade)
At the Age 22 in 2012, I had 6lakh in my Demat Account. Even after I made the above mistakes, by this age I understood the importance of Multibaggers in life and, how it can change one’s fortune if done rightly. I had found some stocks like Lanco Industries(Now Srikalahasthi Pipes) around Rs 30. I used to visit this company in the south to enquire about rejected DI pipe scrap for trading purposes.
When I saw the whole campus of Lanco Industries, I was amazed and the rough calculations that I could make were that this company should have been valued at least at 300-400Cr but Market Cap of the company was just 40Cr. I was regularly visiting this company. From what I saw and heard from local transporters, it was evident that the company gave employment to many people in the area, which in turn changed the lifestyle of the people.
Without thinking much I bought some shares of Lanco Industries at 29Rs per share. After going through the Annual Reports of the company, It was surprising to see stock tanked to Rs 15 within a few months since I bought. But I did nothing as I knew the assets of the company were more and business was not that bad. In 2014 Value unlocking event happened in terms of Mr. Narendra Modi winning the election. The stock went from 14 rs to 340 in just 2 Years. (I sold all my holdings in the 70-140 range).
I found one more stock named IndoCount Industries. A Neighborhood company, I had bought it at Rs 4 and Sold at Rs 13, Stock went to become a Megabagger in 2 years it went to 240. Like these, I had around 35 Stocks. But did not make any game-changing profits because of not understanding the big upside potential.
Missed them out by selling early.
Completion Of MBA & The First Job
Stock Markets gave me much exposure to understand the business which MBA never did. I was one of the bright students not because of scores but because of extra-curricular activities, exposure to real business.
My love for the stock market and passion for research gave me an MBA degree kind of exposure, on the very first day of college.
This passion helped me to get a job at NJ India Invest Pvt Ltd( Largest National Distributor of Mutual Funds in India). I worked there for 1.5 years, Just to get exposure, I learned many things at NJ such as, how to handle clients during tough phases of markets, how to make them align with the goals, and how Financial business is done. I used to train LIC agents to be a part of NJ mutual distributors.
Leaving NJ & Starting Broking Business & Journey Towards Bankruptcy
Thinking that I had a good understanding of markets, I started a broking business with one of the leading broking companies as a sub-broker.
I had to do the things which I didn’t like to do. I took over their branch with existing 500+ clients, most of them didn’t know what risk means. 80% of them were dabbling in stock markets.
I had a passion for finding multi-baggers and investing in them. I went bankrupt at the end of 2015, as I was not able to run this business properly. I failed to manage the risks of highly leveraged clients and had some big dues of 42 lakh to be repaid. This was one of the toughest periods of my life so far and in 2016 I was thinking of suicide. I was kicked out of our house, as my dad thought, I would ruin his net worth by dabbling in stock markets.
I got moral support from my brother and my wife to fight back in that tough time. During that time, my brother and friends stood with me and helped me financially to repay some of the dues. This help from my brother and friends gave me a ray of hope that the entire amount can be repaid. Without my brother and friends, I wouldn’t have come out of this bankruptcy. I consider them a lifeline during such tough times.
Meeting My Life Guru & A New Turn In Life
Much before my bankruptcy, I had met my Guru, who was also into stock markets(I consider him as my life guru). I had started learning how life should be, what is the purpose of life, How to lead a stress-free life. I started enjoying life than ever before. Because of this, thoughts of suicide were short-lived.
I generated more power from within. Worked day and night in the material trading business, Repaid the Debt over the Next 2.5 Years along with help that I got from my brother and friends. Techno Value Trading also helped me to repay the debt. I was making money on a Consistent basis through my Techno Value Approach that I built in these times.
I must have read Annual Reports of More than 300 Companies in three years i.e 2017-2018-2019. As a result, I understood the Importance of a Circle of Competence Investing. This helped me to create a list of 50 stocks, apart from these I don’t need anything else. I would pick only 5-6 High-Quality Multibaggers from these for Vision 2025. Rest stocks can be used for value trading purposes whenever there is an opportunity for the short to medium term. Few Bets, Big Bets, Infrequent bets. Deep Value Investing Etc.
After learning many things about life from my guru, I Made My Passion Towards Teaching and Researching a Mission.
I learned that even after being in the markets for a long long time, it took 8 years for me to understand various things from deep to make money on a consistent basis. If I had got a good mentor at an early age, I would have saved at least 5 valuable years of my valuable life.
Man On The Mission & Start Of Strategic Alpha Blog
I must have made around 50+ different mistakes in investing and trading over the past many years. I understood that I could survive in markets, because I was so passionate about it, that everything else did not matter much. It became a chemical thing for me. However, people may not be able to do that. 90% of people leave stock markets after facing losses in their initial times. Stock Markets are like any other business, It takes 3-5 years at least to set up as a business and be profitable.
Having understood the above thing, I wanted to cut down the learning curve to 1 year.
So that people can learn from my mistakes. It’s always better to learn from other’s mistakes than to do all the mistakes yourself. I started writing a strategic alpha blog in 2017 with a view to share my thought process when I am researching stocks.
I was brainstorming how to cut down the learning curve, I started documenting all my past mistakes and started creating content on the same. The blog became So popular that 1600 people started following it up until recently.
I started writing blogs on Fortune Creation. The stocks have the potential to create fortunes for the people who can understand and make full use of it. After writing blogs for 3 years, I was very clear about my intentions to help people to create fortunes in the stock market. Now I have a vision of changing the lives of 1 Lakh individuals through my Mentorship Model.
I took some workshops in Pune, Kolhapur, Sangli, Belgaum in the year 2018-2019, however, I realized that people don’t value the things which are for free.
Some of the blogs that I wrote are really helping people create fortunes now.
Me Turning From Blind Fundamentalist To TechnoFunda, TechnoValue Investor/Trader & Getting “Brahmastra”
Ego is a very bad thing, because of being a Core Fundamentalist, I stayed away from Technical Analysis for 5-6 Years.
I was of the opinion that Technical Analysis is a waste. I was told by one of my professors in college that technicals can help you understand the sentiments of a stock. He was a Core Technical Analysis Person.
When I was content about my discovery of the enhanced multi-bagger framework. I thought about learning Deep Technicals and Advanced Patterns. Since then there is no looking back.
Earlier I used to miss rallies, even after a lot of background research about the company. The study of advanced patterns helped me understand the sentiments that maximize my earning potential in stock trading and investing.
After learning these patterns, As I was deeply engraved in fundamentals and value earlier, I told the tutor that it will prove to be ‘Brahmastra’ to me. And actually, it has proved to be ‘Brahmastra’. A glimpse of that you can read my blogs where I have posted the technical charts in the TechnoFunda Section.
Man On The Mission & Start Of Mentorship Program And Story Of Being A Corporate
After realizing the importance of a good mentor for people in stock markets, and have a mission to change fortunes for 1Lakh individuals, I started a company and Sold 8% Stake in StrategicAlpha to Angel Investors at 7.5Cr Valuation in Aug 2020.
Angel investors are the old mentees who have seen themselves becoming smart investors through my teachings. They had the conviction that this mentorship model can be a win-win for all the people.
- StrategicAlpha Blog is Awarded as Top 40 blogs in India on Investing/ Trading.
- I have written over 70 Blogs over the past 4 Years. Which has helped Blog Readers to Make Informed Decisions in Stock Markets. and become smart investors by being ahead in time.
- I have had the privilege to train more than 350+ People through my Offline and Online Mentorship Program.
- 85 Mentees Joined for Online Program Since March 2020
I am glad that you are here!!!
I would love to help you achieve your goals.
My roots are grounded because Stock Markets have taught me “Being Humble Is The Key.”
I have found my ‘IKIGAI’. I am born to teach, mentor, research stocks, Money is Secondary! If I Follow My Passion Money Has To Come.
If you are able to resonate with my story and wish to start your journey, Let’s Stay Connected!