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I Just Lost a Friend

Posted on May 10, 2015 by fundooprofessor

By the time you read this, you may have seen many obituaries of my friend Parag Parikh
— who recently died in a tragic road accident in Omaha.

Parag, some of those obits say, was a contrarian value investor and money manager who
took the high road in serving his clients, "rst at his "rm’s PMS and then at his mutual
fund. I want to focus instead on Parag, the remarkable human being who transformed
many lives.

“Parag” in hindi means nectar which is appropriate because I know of many people who
drank the nectar of Parag’s generosity and kindness. Let me tell you about just three of
them.

Back in 1998, I was struggling to become a successful value investor. Having returned from
England in 1994, and being bitten by the value investing bug, I had started my investment
boutique with a very small corpus contributed by friends and family members. It would
take many years before I achieved any real success, but in the meantime to make ends
meet, I used to write columns in The Economic Times and a few other publications.

One day I had the opportunity to meet Parag who, it turned out, had read a few of my
articles. He was running a PMS scheme at the time — something I thought I might want to
do one day and so I was excited to get an opportunity to meet him.

Without my telling him anything, Parag saw my “situation,” understood it, and invited me
to write for his "rm. I accepted his o$er and wrote thirteen columns for him on topics
such as a (hypothetical) leveraged buyout of Bajaj Auto, the rigged market in PSU stocks,
special situations investing and why value investors should stay away from IPOs. Those
articles got me a lot of recognition in the investment community which was very helpful
to me at the time. So, even in my early days as a value investor, Parag had propelled me
forward.

He never stopped.

Over the years, we had stayed in touch and Parag had kept himself abreast of my progress
as a value investor and also as a teacher.

Then, in 2011, he reached out to me with an idea. He was going to hold a symposium
comprising of value investors. Titled “OctoberQuest,” the event would seek to be an
“intellectual hotspot for exchange of thoughts and sharing of experiences among like-
minded peers.”

Parag wanted me to address my peers in the value investing community many of whom
were much older than me! When I read his mail, the nervous and introverted part of me
took over. Speaking in front of students who know little is nothing as compared to
addressing peers who know much more. That thought made me supply Parag with one
excuse a!er another to somehow escape from all this.

It didn’t work.

A!er reading a series of email exchanges, Parag called me and said: “Sanjay, you can do it.”
He talked me into it and on 28 September, just a few days before the conference I wrote to
him: “Your persistence got me! If it’s ok with you, I will move my timetable a bit and come
to attend your wonderful conference.”

Parag replied:

“
“Dear Sanjay, thank you so much. Your presence means a
lot to me and also to the value investing community. We
will schedule your speech "rst thing in the morning a!er
the keynote address by Mr.Chandrakant Sampat.”

Shit! I was going to speak immediately a!er the legendary Chandrakant Sampat! Images of
tomatoes and eggs being thrown at me immediately came to mind. It was too late though
to back out now as a commitment to a friend had been made. So, I gathered all the
courage I had and went on the stage and spoke something unremarkable to my peers.
A!erwards, Parag came up and announced that from now on I will be the keynote speaker
at his conference.

Parag was doing it again. He was propelling me forward.

Of the next three OctoberQuest keynote talks I delivered, two went viral on the net. (The
third one remains unpublished.) I still get mails from people from around the world about
them and have made many friends and earned a lot of respect because of those talks —
something that wouldn’t have happened but for Parag.

Arpit Ranka is one of my brightest students. He dropped out of college to study from me
and ended up topping my class. When the course "nished, he came to me for career
advise. I told him to go get a college degree. Thankfully, Arpit didn’t listen. Instead, he
went to Parag, who immediately hired him. Over the course of next few months, Parag
mentored Arpit and invited him to collaborate with him on his second book. That book,
on behavioural "nance, contains Parag’s accumulated wisdom of more than three decades.

Arpit recalls the experience:

“
“Sometimes a gesture remains with you for your entire life.
One such gesture on his part, which greatly exaggerated
my contribution was him sharing 25% of the royalty of his
book with me. I consider myself blessed to have worked
under somebody like Parag bhai, who not only inspired
you immensely but then went out of his way to recognise
your contribution, which was e#ectively fruit of his trust
more than anything else!”

Years later, Arpit went on to become a very successful value investor and I was delighted to
learn recently that one of the world’s largest University endowments reached out to him to
explore a working relationship with him. Unfortunately, Parag didn’t get to know this. Had
he known, he too would have been so proud of Arpit.

Like Arpit, Megha More is also a bright ex-student. She went to work for Goldman Sachs
and a!er a while when she found herself drowning in that ocean she sought my help. She
had an interest in behavioral "nance so I sent her to Parag who immediately hired her.
She recalls:

“
“I would sit with him in his o$ce for about 30 mins to an
hour daily and just rake in all the wisdom that he so freely
and happily imparted.”

Megha’s story is inspirational because it shows how one thing can lead to another. She
recalls how Parag encouraged her to stay "t:

“
“When I informed him that I have joined a gym, he was
elated. He knew I had almost an hour long commute to
work. He immediately said, “I will allow you to leave one
hour early daily if you promise you won’t skip the gym.””

Megha went to Chicago to be with her husband and ended up running the Chicago
marathon. A few years ago, she returned to India and started a "tness company which was
recently funded by a venture "rm at a multi-million dollar valuation. She recalls:

“
“I had tears in my eyes when I informed him about my
personal decision to move to US, but he spoke to me like my
father would and said “This is the "rst of many sacri"ces
that you’ll make in your marriage. Don’t start this
beautiful journey with a regret. You were meant to be here
with us for this limited time only.”

There is no other way I can justify losing Parag than by quoting his own words to Megha:
He was meant to be here with us for this limited time only.

Note: And edited version of this post will be published in the forthcoming issue of Outlook Business.

Update: Outlook Business Link.

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Posted in Security & Business Analysis

Published by fundooprofessor

I am Distinguished Adjunct Professor at Flame University, Pune. Previosuly, I was Adjunct

Professor at MDI, Gurgaon, where I taught MBA students two popular courses titled
“Behavioral Finance & Business Valuation"(BFBV) and Forensic Accounting and Corporate
Governance (FACG) for many years. I am also Managing Partner at ValueQuest Capital
LLP— an investment advisory boutique which helps its clients invest their capital in good

quality businesses. View all posts by fundooprofessor

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19 thoughts on “I Just Lost a Friend”

Janak Merchant Dear Professor,

May 10, 2015

You have written about Paragbhai so beautifully. I do not

exactly recall but I have this feeling that Paragbhai used to
publish a monthly magazine called Odyssey. I had read your
articles in that publication. I was sad when Paragbhai stopped
publishing it. I still may have all those copies along with old
OIDs.

I had the opportunity to meet both of you in Oxford Book

Store. I was introduced to Parahbhai by Chetan. He sounded
very humble.

May his soul rest in Peace.

Recently I was in Mauritius and remembered you and

Chetanbhai. The driver over there informed me that one US
based investor worth crores visits Mauritius and reads books
there whole day!

He did not recall his name but he has taken my email and said
he will send me his email.

Warren n Charlie Read a lot.

Paragbhai will be remembered for his writings and wisdom he

has spread to many.

Best wishes,

JM

vsivagnanam The great ending of this article and the sad ending of Parag
May 10, 2015 Sir’s life both made my eyes wet. RIP PP.

Saket Saraogi Beautiful Sir, really inspiring.. thanks

May 10, 2015

Prateek Chaudhary Dear Sanjay Sir,

May 10, 2015

Thank you for sharing with us – what a remarkable man Mr

Parag was.

With qualities that are a rarity in the investment world.

A true inspiration !

jaithecloner May his soul rest in peace…You continue his tradition of

May 10, 2015 helping others… His helping thoughts will live for ever through
people like you…

I received a note from PPFAS… But learnt that he died here in

USA from your article… I am really upset why God cannot give
long innings for kind hearted people like Parag…

Looks like this happened in a street

http://www.omaha.com/news/indian-man-visiting-for-
berkshire-meeting-killed-in-wreck-wife/article_71e4084e-
f199-11e4-b737-8733c70d95a2.html

http://www.ketv.com/news/2-critically-hurt-a!er-sunday-
morning-crash/32779812

Pankaj Mohta Paragbhai is inspiration to value investor community here in

May 10, 2015 India. Its a tribute to the person who put his friends, employee
and investor ahead of him. Salute to him…..

Muthu Thanks for sharing and highlighting excellent qualities of

May 10, 2015 Mr.Parag Parikh. He was a great human being. You have a
generous and kind heart to praise your peers. That’s a rare
quality.

explorer71 The news was shocking. A "tting tribute to towering

May 10, 2015 personalities like Paragji would be for us to work hard to get
more common investors in the value investing fold and away
from the crazy dance of capital that keeps happening daily
under the name of stock markets. This will create true wealth
for common people. To this end, please do post here all your
writings you mentioned, as well as Paragji’s magazines
mentioned above, other old articles, etc. I am sure there is rich
learning. Paragji’s memories will live forever this way. RIP.

Rajagopalan Sampath Excellent article about a great man. May his rest in peace.
May 10, 2015

mayur dvivedi Sir A wonderful post for the great man. I never met him but i
May 10, 2015 have followed his sayings and teachings over the years. I
request you to pass on my condolences to his family. They
should know what AN INSPIRATION PARAG PARIKH IS and
will continue to be to behavioral and value investing. regards
Mayur Dvivedi M^~()R

“It is not important where you stand but rather in which

direction you are moving”

“GOD isn’t the greatest inventor but rather the greatest

invention”. So believe in the greatest inventor- MAN and Keep
the Faith in GOD.

satheesh kannan J Thanks for sharing your association with the Great
(@jrmskannan) personality.Proud to have his book on value investing. Let his
May 10, 2015 books and articles be the guiding force for the future
generation.

zayan I don’t know know what to write as comment for this article.
May 10, 2015 The article is too heart touching. Thanks for sharing.

B.G. Prasad ” There is no other way I can justify losing Parag than by
May 11, 2015 quoting his own words to Megha: He was meant to be here with
us for this limited time only ” …….very well quoted fundoo
professor Sanjay Bakshi…..I asked for an investment advice
once he declined to give saying he has vested interest. I
prodded , as you are invested in , it is better to advice about
your belief at least personally ,….he asked me why do you ask
then and signed o$ …..My respect of him went up manifold ….

Mandeep Singh Truely an inspiring life led by Him. Hope everyone of us is able
Arora to have a mentor like him and dwell from their learnings and
May 11, 2015 experiences.
Thanks

param hans Sethia sir , i am really inspired by this article and one thing i really
May 11, 2015 feel about you as a person who has got great humbleness in
sharing your knowledge about stockmarket is due to
inspirations from persons like parag bhai.

Vipul Kaushik It touched my heart. Truly … we can only console ourselves by

May 11, 2015 quoting his words “you were meant to be with us for this
limited time only”, but gap by his absence will be felt for long
long time.

Gaurav A Parikh Hey Sanjay,thanks for sharing your treasured memories of

May 13, 2015 Parag…A few years ago when we met while catching a week’s
breather in the Nilgiris he spontaneously suggested we co-
author a book and though we brainstormed a few ideas I had
declined for some reason…we ran into each other occasionally
at our Club and would share brief bytes of outspoken and frank
views on capital market issues of the day….we never worked
together though we had common clients…With his untimely
demise our World has lost ‘Value’ early

where go Dear Sanjay, Can you share more details on the lectures at
May 14, 2015 Flame Pune. No details can be found anywhere apart from
your tweet. Thanks, Prashant

where go By lectures, I was referring to the Parag parikj memorial

May 14, 2015 lectures favouring Dakshana foundation. Thanks.

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You look for combination of factors: very little brand loyalty,
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Combine with this from visualcapitalist.com/inflation-char…
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Fundoo Professor @Sanjay__Bakshi · Apr 28

Always a good idea to look at the graveyard to understand
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1984 :: TV Brands In India

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Reading this thread, I wonder just how out of touch with
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[Marriage Equality Petitions in
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When you miss life on campus @FLAMEUniversity

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If you live in Noida, do try this out.

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What more can a teacher ask for? @FLAMEUniversity

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Fundoo Professor @Sanjay__Bakshi · Apr 13

Thanks, Jahnavi. I was apprehensive, given the young age of
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