How Vedanta’s Anil Agarwal Bested Warren Buffett in Returns
- Tharindu Ameresekere
- Jun 24
- 1 min read
When it comes to long-term investing, few names resonate louder than Warren Buffett. Yet, Vedanta’s Anil Agarwal has quietly outperformed the Oracle of Omaha in a feat that underscores the power of patience, strategy, and conviction.
Starting with an investment of just ₹1,000 crore in Hindustan Zinc between 2000 and 2003, Agarwal turned that into ₹71,000 crore over 22 years — through dividends and strategic stake sales. This translates to an annual return of 24%, significantly higher than Buffett’s 20% via Berkshire Hathaway over the same period, and well above the 15% CAGR of India’s Nifty 50.
Agarwal’s playbook is simple but bold: acquire undervalued assets, drive backward integration, focus on cost efficiencies, and scale aggressively. His acquisition of Hindustan Zinc at an effective cost of ₹3 per share — and recent sale of shares at ₹449 — highlights a masterclass in value investing. His latest divestment of 1.6% stake fetched ₹3,000 crore without compromising strategic control.
From humble beginnings as a scrap dealer to listing Vedanta on the London Stock Exchange, Agarwal’s journey has been marked by foresight and global ambition. Yet, the road ahead isn’t without challenges. With Vedanta’s consolidated debt nearing ₹75,000 crore and promoter shares fully pledged, analysts urge caution.
Still, Agarwal’s long-term vision mirrors Buffett’s — but in a far more volatile sector. While Buffett chose consumer staples, Agarwal conquered commodities. The next test lies in reducing leverage and sustaining returns.
Anil Agarwal may not wear the same suits or walk the same Wall Street halls, but in the world of returns, he’s given even Warren Buffett a run for his money.
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