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Big, bold and an optimist, RJ will continue to inspire retail investors

His unwavering faith in India’s growth story, his optimism, discipline and the ability to keep calm even in the most trying of circumstances set him apart, writes Gaurav Dua of Sharekhan by BNP Paribas

August 14, 2022 / 06:43 PM IST
Rakesh Jhunjhunwala.

Rakesh Jhunjhunwala.

From Rs 5,000 to $5 billion—Rakesh Jhunjhunwala’s incredible feat will continue to inspire millions of investors in India.

The legendary investor’s success story and host of his multi-bagger picks are well documented and commented upon. He not only had the uncanny knack for picking the winners, but he also took outsized positions in stocks like Lupin, Titan, Pantaloon Retail and Crisil, to name a few.

What is more, he had the patience to hold shares of these companies for a long period and that’s what helped him create a humungous amount of wealth.

So, in addition to his astounding stock-picking skills, Jhunjhunwala had some distinct characteristics that made him the investor he was.

RJ had undying faith in India’s growth story. This belief helped him keep the big picture in mind. An eternal optimist, he could take the right decision even amid the worst of the gloomy conditions.

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Also read: Dalal Street titan Rakesh Jhunjhunwala calls time on earth

I distinctively remember an interview in April 2020 when he said the steep fall in the market was a once-in-a-lifetime opportunity to buy at throwaway prices.

As an investor, we all know the basic concept of buying low and selling high. Or, buy when there is fear on the street and sell when there is too much greed. Most of us, however, do not have the discipline or conviction to practice these words. But successful are those investors who can control their emotions and look beyond the immediate future.

Last, but not least, the man was brutally honest. It is not as if he didn’t make mistakes but he had the humility to accept them and take corrective action. For that, you need to be honest with yourself. He has shared a lot of wisdom over the years but one of his most memorable lines to me is—not learning from your mistakes is the biggest mistake you can make.

Also read: Rakesh Jhunjhunwala's greatest investment hits, and odd misses

He may often be referred to as an ace investor but RJ was an equally successful trader as well. He was known to make bold and big bets with remarkable agility.

The ability to both trade and invest for the long term again stemmed from his rock-solid temperament, discipline and his ability to think rationally in the most trying of situations.

Also read: Which is the one formula the Big Bull held sacred?

Many retail investors would try to follow investments made by RJ and would replicate them in their portfolios. But they could not get the same investing experience in the absence of the legend’s conviction in the India story along with his eternal optimism, discipline and patience—the many virtues that go into making a successful investor.
Gaurav Dua is the SVP, Head Capital Market Strategy & Investments at Sharekhan by BNP Paribas.
first published: Aug 14, 2022 06:42 pm
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