Rakesh Jhunjhunwala, one of India's most popular and successful stock market investors, is a well-known figure. He is India's richest man, with assets of around 20,000 crores. Here are five key lessons that Rakesh Jhunwala's story can teach investors:
Be patient
Rakesh Jihunwala's patience when it comes to his stocks is one his best traits. For example, only two stocks in his portfolio have generated positive returns. The rest, however, are in the red. But he seems to not mind. He says he only buys shares of the company and doesn't sell any stock as long as its fundamentals are sound. His Titan investment fell 30% from its peak. Would we panic and make hasty decisions if one of our portfolio stock fell 30%? Jhunjhunwala is a strong person. He didn't sell one share of Titan because his faith in the Titan business paid off and that patients were well-paid. Jhunjhunwala is now the largest wealth producer for Titan, something he may have missed if it was an impetuous decision.
Search for companies that have a competitive edge
Jhunjhunwala's investment theory suggests that you look for companies that are difficult to replicate. Many stock market Gurus asked Jhunjhunwala why he purchased CRISIL. In 2002, CRISIL was only 200 rupees. The stock's value has increased eightfold since then and now trades at around 1600 rupees.
Trading vs. Investing
Jhunjhunwala was not from a well-off family. When he arrived in Mumbai to start his career, he had five thousand rupees. Now you can be the most well-invested person in the world. Even if you only have 5000 rupees, it is not enough to make it rich. capital is required for investing. Rakesh Jhunjhunwala knew this. He started his career as a trader, not an investor. To acquire the capital needed to invest, he traded for over a decade. He can use his trading skills to not only get the funds he needs, but also gain knowledge of the stock exchange. This would be crucial for his career. Jhunjhunwala believes that trading should be used for short-term gain and that investing should be used in order to make long-term wealth. According to Jhunjhunwala, trading keeps him sharp cognitively and allows him to interact in the market.
Believe in yourself Jhunjhunwala believed in investing a lot in this stock. He lost a lot of money on this trade which, at the time, accounted for most of his cash. Jhunjhunwala would have suffered significant losses. Over the next nine year, however, this led to a 400-500% profit.
Conclusion
In response to Jhunjunwala's recent losses, Damani asked if he had any regrets. Jhunjunwala responds wisely, saying that regrets are not the point of life, but learning from your mistakes. He stated that he had learned something and that his mistakes had helped his growth as an investor. These mistakes were his teachers in some ways. Don't regret making a mistake. Instead, make it a learning opportunity that will help improve your ability to be a better investor.
Tags:
rakesh jhunjhunwala passed, india's warren buffet, stock market
Read This Full ARTICLE, Click Here
Comments
Post a Comment