Ep72: Manit Parikh – Made a Million by 24, Lost a Million by 26 

Manit Parikh has worked across sectors on transformational programs with impact organization-wide, leading two companies to reach US$300 million in revenue. He is currently working with number three. This has led him to earn the nickname “The Michael Bay of Business”. Manit is working with Yellow as a director of investment and head of business. Prior to Yellow, Manit has worked with Fortune 500 companies in leadership positions. Along with his current position at Yellow, he is also an advisor to various startups’ early-stage investors, and an international keynote speaker.

 

“Suddenly, a boy who made a million dollars just saw a million dollars go away. And I think that is when I really truly learned the value of hard-earned money and not being greedy, and actually analyzing everything to the core.”

– Manit Parikh

Lessons learned 

  1. Analyze and study the business you are planning to invest in. 
  2. Don’t be “cocky”, arrogant. 
  3. Ask the right questions, ask the wrong questions, but ask them. Because every question brings an answer that raises another question that needs to be asked.  
  4. Never be afraid to say “no” to an investment, as there are many more out there. 
  5. One occasion of success investing with one person or company is no guarantee that they can or will make you money again.  
  6. Analyze every facet of a business model, tear it apart and ask every possible question from the founders, because they are the ones asking for money

 

Andrew’s takeaways 

From the Worst Investment Ever podcast and blog series, six main categories of mistakes have emerged, starting from the most common:  

  1. Failed to do their own research 
  2. Failed to properly assess and manage risk 
  3. Were driven by emotion or flawed thinking 
  4. Misplaced trust 
  5. Failed to monitor their investment 
  6. Invested in a start-up company 

From Manit’s story

  1. Mistake No. 6 refers to startup businesses. These are usually very risky, so you have to be very careful about having anything to do with them.  
  2. Never be the sole creditor for a start-up. When you are the sole provider of funds or the start-up has very limited diversity of fund sourcing, the company can run out of cash quickly and the situation can become quite desperate.  
  3. Never invest in a business whose success is dependent on government policy. Policies and economic decisions change with every government. To be sustainable in business as an investor, avoid dealing with government contracts as they are unstable and can’t be relied on.
  4. Warning bells should sound when a start-up’s directors claim they have special access through relationships with governmental or regulatory contacts 
  5. Diversification of investment sizes and types is always wise.  

 

 

You can also check out Andrew’s books  

Connect with Manit Parikh  

Connect with Andrew Stotz 

 

About the author, Andrew

Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company that provides institutional and high net worth investors with ready-to-invest stock portfolios that aim to beat the benchmark through superior stock selection.

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