THE WIZARD OF DALAL STREET

By following a few golden rules, Rakesh Jhunjhunwala made his mark in the world of finance and investing

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.