Ramesh Damani recalls Rakesh Jhunjhunwala’s one rule for surviving market crashes

Veteran investor says Jhunjhunwala’s biggest teaching was simple, stay bullish on India.

• Ramesh Damani learned optimism from Rakesh Jhunjhunwala.
• Jhunjhunwala stayed bullish on India, even during downturns.
• Experienced investors view crises as opportunities, not exits.

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Veteran investor and BSE member Ramesh Damani said one of the most enduring lessons he learned from the late market investor Rakesh Jhunjhunwala was to remain structurally optimistic about India, even during difficult market phases.

Speaking at Moneycontrol’s Global Wealth Summit, Damani said Jhunjhunwala repeatedly emphasised the importance of maintaining long-term conviction in the Indian growth story rather than becoming cynical during market downturns.

“Something I learned from Rakesh Jhunjhunwala was to be bullish on India… Rakesh Jhunjhunwala always taught me to be bullish on India and not be cynical,” Damani said.

According to him, this approach has guided his investment philosophy for decades, especially during periods of market stress.

Early market shocks shape investing philosophy

Damani reflected on how early experiences in markets can shape long-term investment thinking.

He recalled witnessing one of the most dramatic market events in history, the 1987 crash, when the Dow Jones Industrial Average fell about 20 percent in a single session.

“I was 28 years old in 1987 when the Dow fell 20% in a single session,” he said.

Such experiences, he noted, help investors understand that volatility is an inherent part of markets.

“It feels horrible at 10% down or 60% down, it never gets better… losing money is never fun,” Damani said.

At the same time, he cautioned that markets cannot keep rising endlessly.

“Markets cannot rise indefinitel, trees don’t grow to the sky,” he said, adding that successful investing is about building wealth gradually through compounding.

“Long-term investing is about compounding wealth over time,” he said, noting that investors typically aim to double their capital over several years through this process.

Oil is a concern, but not the only reason for market declines

Addressing the current market environment, Damani said concerns around oil prices are justified but may not fully explain the market correction.

“Everyone is concerned about oil, and the reason is right. But oil is not the only reason the market is down,” he said.

His comments came amid heightened global volatility driven by geopolitical tensions and energy market disruptions.

Madhusudan Kela recalls Jhunjhunwala’s reassuring presence during crises

During the same panel discussion, Madhusudan Kela, founder of MK Ventures, reflected on how Jhunjhunwala’s outlook often helped investors remain calm during periods of uncertainty.

“I think more than anyone else, I miss Rakeshji, he would always be reassuring us the most,” Kela said.

He pointed to two major market crises, the 2008 global financial crisis and the COVID-19 pandemic, as particularly testing periods for investors.

“In 2008, when I was managing money, when things were crumbling and in 2020 during COVID, these were very tough times,” he said.

Kela said panic typically rises when investors cannot see a clear end to the crisis.

“When there is no end game, that is when the panic sets in. But then after a while, everything looks like an opportunity,” he said.

According to him, experienced investors who have lived through previous crises tend to treat downturns as opportunities rather than reasons to exit markets.

“During testing times we have not thrown in the towel and have looked at it as an opportunity,” he said.

Jhunjhunwala’s conviction in India: Amit Goela

Amit Goela, partner at Rare Enterprises, said Jhunjhunwala’s investment philosophy was built on a strong conviction in India’s growth story.

“The underlying theme that Rakesh Jhunjhunwala believed in was being bullish on India,” Goela said.

He noted that Jhunjhunwala focused almost entirely on Indian equities and maintained his conviction even during periods of pessimism.

“He never looked abroad, never invested elsewhere, just looked at Indian equities,” Goela said.

According to him, Jhunjhunwala often stayed invested even when markets were bearish, which helped him benefit when the cycle turned.

“He became bullish at a time where everyone else was bearish, but he remained invested. When the market turned, he made a nice advantage of the up move,” Goela said.