FY12 has been worst trading year of my life: Jhunjhunwala

Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Delta Corp | Rallis India | Pipavav Defence and Offshore Engineering Company | Sterling Holiday Resorts (India) | VIP Industries | Orchid Chemicals and Pharmaceuticals | Geometric | Aptech | Pantaloon Industries |

Q: Would you have sold out construction names like Nagarjuna Construction earlier? Would you have liked to do that on hindsight?

A: A stock, which was at Rs 380, and today is at Rs 52 - in hindsight everybody would have (had liked to sell it).

Q: But just in terms of tracking the story, could you have seen such pain and such destruction in construction and infrastructure?

A: I would not really. But to tell you a story: I'd made the investment in Prime Focus. I bought the stock for Rs 4 - a Re 1 share. I bought the share on April 21, 2004. On December 2007, someone offered me Rs 115. I told him, "who?" and the price went down to Rs 8. Today it's Rs 55.

So, if you think of the kind of mistakes you have made and what they have cost you - you can't sleep in the night. So look at the total performance and learn from the mistakes. And I made many, many of them but they are far less known then the successes.

Q: At least the big ones have compensated for it and that's what a good portfolio does. Are you okay with Lupin because that's gone up 6% between last Diwali and this Diwali?

A: It's not question of what about the last three years.

Q: Terrific performer but has slowed down a bit.

A: You can't get good stocks to invest every time. I think Lupin today is a mature company, doing reasonably well - 15-20% growth, good balance sheet, and diversified product range.

It has given me 18-24% return. I am very happy. It should give 18% return.

Q: Why have you never bought another bank other than Karur Vysya Bank?

A: I bought Federal Bank.

Q: You bought Federal Bank. But none of these new sector kinds of banks - the Yes Bank and IndusInd - never attracted you or was the price wrong?

A: No. They have performed so well, the price was always right and I was wrong. Alright, so maybe by chance more than anything else or maybe I thought they were too expensive. They were two-two and a half times book. But I think Karur Vysya Bank and Federal Bank have also performed quite well.

I still think by all measures Karur Vysya Bank is extremely cheap bank in terms of valuation. For a bank, which has given 18-20% earnings, has net NPAs, which are close to zero, is growing 15-20% a year, good return on equity - I am very satisfied.

If you ask me what's my best investment in life, of course, it will be Titan and after that Karur Vysya Bank.

Q: Do you ever trade in gold? It's done so well over the past.

A: Yes, I do trade in gold.

Q: What's your view there now?

A: I think it won't go down. It will consolidate.

Q: Around USD 1,500-1,600 per ounce?

A: At USD 1,550-1,650 per ounce - whatever. Gold, according to me, is not going to go down unless and until this crisis of confidence in the western world is resolved. It will take a lot for that confidence to be restored.

Also, because central banks have sold lot of gold between 1999 and 2003, they are big buyers. If gold comes down central banks will again be big buyers - not that I am very expert on gold. I don't pay too much attention on it.

Q: I asked because Indians have largely been buying gold or putting in fixed income over the last one year. They have not just got into equities at all. Do you think it's time to get out of that mindset?

A: It's popular to do what's popular but it's not profitable to do what's popular - don't forget that. So I think gold investing and fixed deposits are also now very popular. I don't know; maybe in the next one year equity may underperform.

As far as I know, if any asset can give me an 18% post-tax return. I don't think I need to look elsewhere. I am confident equity will give me an 18-24% return over the next decade.

Q: That's you. I am saying for a regular investor who is just probably buying an ETF or just a regular diversified mutual fund who is not giving that kind of return, do you think it still makes sense for equities at these kind of levels?

A: Well depends. What I would advice anybody is to put good amounts in equity but put it on a monthly basis. So you don't put at one value you put at all values. And then when that peak comes, whenever it comes - 5-7 or 10 years - don't get greedy or don't ask anybody. I am not going to forget the lessons of 2007 easily.

Q: Do you think in the next one year there could be a massive capitulation in the market like we saw in 2008? That's the fear, which keeps people away.

A: I don't think so. There is no commitment. Who are going to capitulate?

Q: Global guys, maybe?

A: Global guys, also, the commitments are I think at all-time lows. I don't think there is any question of that kind of capitulation at least in India. I don't know internationally.

Q: What's your approach to for the next one-year? How are you approaching things for the next 12-months?

A: Low on my trading because good trading means when you are not doing well, you must withdraw your volumes. As far as investing goes, I am looking to disinvest one or two of my stocks - both in listed and unlisted. Get debt free and relax.

Q: Do you think you will probably liquidate one of your big bets in the next 12-months?

A: I won't comment on that. I won't liquidate any of my big bets. That's what I think at the moment. I never know what I will do tomorrow.

Q: And you were saying what will you do after you sell some and get debt free?

A: Take life easy.

Q: Any new resolutions? Last time you were telling me you want to learn to swim etc. Have you made any progress on those fronts?

A: Not really. Every year's resolution is drink and smoke less. But doesn't happen.

Q: That's constant. But when will you do this? You are not getting any younger.

A: Well, I don't know. I haven't thought of any resolutions. I'll talk to my wife today and ask her.