Rakesh Jhunjhunwala, a name that needs no introduction, was one of the best investing legends. Popularly known as the Warren Buffett of India, Jhunjhunwala was always extremely positive about the prospects of India. Most of his stock picks were based on the assumption about India's rapid transformation and growth.
While he was a long-term investor, he indulged in short-term trades as well. He dared to trade against market sentiments and built huge positions to support his conviction.
Trading when others fear, Jhunjhunwala made handsome profits from his contrarian approach. Most of the trading profits were re-harvested back into buying or adding some fundamental stock picks in which he was extremely convinced about the prospects, management and opportunity.
Rising from merely ₹5,000 when he started his journey in the stock markets, Jhunjhunwala 's holding and investments in the stock markets were worth around ₹46,000 crore at the time of his passing.
He believed in multiplying wealth by combining short-term trading with long-term investing. Starting with a minimal capital base, he was able to build a massive portfolio worth thousands of crores. All this was achieved by betting big on high conviction stocks, being positive about India's growth prospects and taking calculated trading calls.
Let us take a look at his investment philosophies
• Buy Right, Sit Tight
Jhunjhunwala believed in 'buying right and sitting tight'. This means conducting your own research, buying the right stock and then waiting till an opportune time comes.
If investors carry out their research, they will have faith in the company's business. Investment decisions should never be affected by the panic created in the market. According to him, discovering the value of the company is more important than the stock's price.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
PRUDENT PRACTICES
Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks
RETAIN ROULETTE
Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst
UNRAVELED THREADS
Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains
PASSING THE BATON
Succession planning helps ensure uninterrupted leadership
RISKY BUSINESS?
SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes
INFLATION-PROOF YOUR CHILD'S FUTURE
Inflation might be stealing your child's future, but children's mutual funds can be their superhero
EMBRACE UNCERTAINTY, SAYS MARKS
Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”
IMPORTANT JARGON
70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY
AN ASCENT T'O NEW HEIGHTS
The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates
