Some great man rightly said that one should never judge a book by its cover.
When you look at Amitabh Bachchan, you are immediately impressed by his staid, dignified and soft-spoken personality. He has the somber air of a statesman.
In keeping with his personality, one would expect Amitabh Bachchan to invest only in “boring” large-cap blue-chip stocks where the level of risk is minimal.
However, the reality is exactly the reverse.
Amitabh Bachchan has a penchant for investing in unknown micro-cap stocks where the risk and reward is high.
Stampede Capital is an ideal example of this.
Even regular market men may not have heard of this microcap (Rs. 450 crore) which is engaged in something mysterious called “Bitcoin mining” and “financial cloud”.
However, neither the fact that Stampede Capital is an unknown entity nor the fact that it is engaged in an activity that is beyond the comprehension of most people deterred Amitabh Bachchan. Instead, in May & June 2014, he went ahead and invested a fortune in Stampede Capital. Today, he holds 847,500 shares, worth Rs. 18 crore at the CMP of Rs. 213.
The investment has worked out well for Amitabh Bachchan. The stock is up 142% since his purchase. The YOY return is a fabulous 300%.
Fineotex Chemical is another microcap (Rs. 285 crore) that Amitabh Bachchan is buying like there is no tomorrow. As of 31st December 2014, he already holds a treasure trove of 531,092 shares. However, despite this sizeable holding, he scooped up another chunk of 1,50,000 shares on 20th February 2015.
Fineotex Chemicals is also a mind-blowing multibagger with a 732% YOY return. At the CMP of Rs. 127, Bachchan’s holding is worth Rs. 8.65 crore.
Just Dial is another racy and new-age high-technology stock that one would never associate with Amitabh Bachchan. Yet, not only did he negotiate a pre-IPO private placement of the stock for himself when he was its brand ambassador, but he has also held onto the stock patiently. Needless to say, Just Dial is also a heavy-duty multi-bagger for the thespian.
How Amitabh Bachchan finds such unknown companies and how he develops the conviction to invest large sums of money in them is one of the great mysteries of life.