Big bull Rakesh Jhunjhunwala celebrates his 62nd birthday today, July 5, 2022. Here Are 7 Investment Lessons That One Can Learn From The Ace Investor
Rakesh Jhunjhunwala Birthday: Big bull Rakesh Jhunjhunwala celebrates his 62nd birthday today, July 5, 2022. Rakesh Jhunjhunwala, referred to as India’s own Warren Buffet, was born to an Indian Tax officer in a middle-class family. The ace investor started trading in the stock market in 1985, when in college. BSE Sensex was around 150 points at the time, and he began investing with Rs 5,000 as capital. According to Forbes, Rakesh Jhunjhunwala’s net worth stood at $5 billion (Rs 39,527 crore), as of 5 July 2022, zooming 15 per cent in one year from $4.6 billion (Rs 34,387 crore). He inspires millions of Indian investors, many of whom follow his every action, recommendation, and advice to a tee.
Jhunjhunwala, who started off his investing journey with a measly capital of Rs 5,000, also marks his 36th year on Dalal Street this year. As per the latest corporate shareholdings filed, Rakesh Jhunjhunwala and associates publicly hold 33 stocks with a net worth of over Rs 25,842.3 crore. These stocks are Titan Company, Tata Motors, Star Health and Allied Insurance Company, Metro Brands, Fortis Healthcare, Nazara Technologies, Federal Bank, Delta Corp, DB Realty and Tata Communications, among others, according to data by Trendlyne. His most valuable listed holding is watch and jewellery maker Titan Company, with holding value at Rs 8,830.9 crore; followed by Star Health and Allied Insurance Company with Rs 4,957.1 crore; and Metro Brands at Rs 2,391.3 crore.
In an interview with a Hindi news channel this past May, Jhunjhunwala credited his success in wealth creation to his firm belief in India’s growth potential.
Here Are 7 Investment Lessons That One Can Learn From The Ace Investor
‘Bhav Bhagwan Hai’
According to the Big Bull, always respect the price. At every price, there is a buyer and a seller. Only the future decides who is right. Learn to respect what you can get wrong.
Be An Optimist
If you call yourself an investor, then you must fall under the opportunistic and optimist categories.
‘Emotional Investment’- A Sure Way to Make a Loss
Investing in equities can give you hard times sometimes when it comes to your ‘favorite’ stocks especially when they do not perform as expected. Hence, to overcome this situation, Jhunjhunwala says ’emotional investment’ is a sure way to make a loss in stock markets. Therefore, do not be driven by your own blindness over a stock, but make sure you have the right tools in your investment kitty.
Don’t borrow to invest
Markets may remain irrational more than the rational being can remain solvent.
Risk
The ace investor says that investors should beware of this four-letter word. Only invest what you can afford to lose in the short term.
You Can’t be Right All The Time
One of the common myths, which we have is that successful investors are the best stock pickers and they are right all the time. But if you look at Jhunjhunwala’s track record, he has made wrong a lot of time. However, despite these mistakes Jhunjhunwala’s wealth is still growing, you know why. Here is a secret when he is wrong of course he is talking all these losses, but when he is right, he makes so much money from one stoke that all his losses on losing investments are negligible in comparison.
Have a lot of patience
One of the amazing qualities of Rakesh Jhunjhunwala is his immense patients with his stocks. He says he buys the business, not the stock, and as long as the fundamentals of the business are intact, he doesn’t sell even a single share. He has seen so many stock market cycles that he doesn’t really get scared from the occasional Stock Market corrections. He knows that the next market would take care of all his problems.
Often referred to as India’s own Warren Buffett, Jhunjhunwala says bull markets are Test matches, and not 50-over one-dayers.
Jhunjhunwala believes India is entering a new phase of growth, with a double-digit run rate this year and for the next few decades. In an interview last month, he projected corporate profits in FY22 to be 5-6 per cent of GDP. Structural changes that have taken place in the economy are coming to the fore, he said.
