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A look at Rakesh Jhunjhunwala's timeless mantras for retail investors

The trader-turned-investor leaves behind a legacy of taking the cult of equity to the masses in his inimitable style

August 14, 2022 / 03:49 PM IST
Ace investor Rakesh Jhunjhunwala, referred to as India's Warren Buffett, has died aged 62. He had been suffering from kidney disease and ischemic heart disease. The trader-turned-investor leaves behind a legacy of taking the cult of equity to the masses in his inimical style and a portfolio worth nearly Rs 32,000 crore. Here are his few timeless mantra for the retail investors
Ace investor Rakesh Jhunjhunwala, referred to as India's Warren Buffett, has died aged 62. He had been suffering from kidney disease and ischemic heart disease. The trader-turned-investor leaves behind a legacy of taking the cult of equity to the masses in his inimitable style and a portfolio worth nearly Rs 32,000 crore. Here are some of his timeless mantras for retail investors.
If markets wouldn’t have given returns, I would not have built my wealth. Financial advisors could not have flourished. Equity market has outperformed gold, jewelry, real estate, bank account savings interest and all other asset classes.
If markets wouldn’t have given me returns, I would not have built my wealth. Financial advisors could not have flourished. The equity market has outperformed gold, jewellery, real estate, bank account savings interest and all other asset classes.
Markets can’t be taught. They have to be learnt. The quest to learn can be quenched by curiosity. Go and learn, do research. Titan gave me 100% return in 3 years at one point. But henceforth if the same stock gives me 15-18% return in the next 3 years, why should I sell? I cannot sell Titan (or any other stock) after it give me 100%, and then go find another stock that will would give just as much return. It’s not easy to do that; let’s admit that.
Markets can’t be taught. They have to be learnt. The quest to learn can be quenched by curiosity. Go and learn, do research. Titan gave me 100 percent return in three years at one point. But henceforth if the same stock gives me 15-18 percent return in the next three years, why should I sell? I cannot sell Titan (or any other stock) after it gives me 100 percent, and then go find another stock that would give just as much return. It’s not easy to do that; let’s admit that.
Mutual fund is a specialized job. Investing in markets needs effort and alertness. Unless you are a full-time investor, you need professional help. And mutual funds offer professional help at very low cost.
Mutual fund investment is a specialised job. Investing in markets needs effort and alertness. Unless you are a full-time investor, you need professional help. And mutual funds offer professional help at a very low cost.
Don’t expect more than 12-18% from equity markets. This is not the Mahalakshmi Race Course. If you invest in a systematic investment plan (SIP), I am confident that that you will get (good) returns over 8, 10, 15 years. Don’t try to be over-smart. SIPs should form an integral part of everybody’s savings.
Don’t expect more than 12-18 percent from equity markets. This is not the Mahalakshmi Race Course. If you invest in a systematic investment plan (SIP), I am confident that you will get (good) returns over 8, 10, or 15 years. Don’t try to be over-smart. SIPs should form an integral part of everybody’s savings.
Never be afraid to make a mistake. But, only make mistakes that you can afford. So that, you may live to make another. If you are afraid to make a mistake, you cannot take any decision in life. Also, take responsibility for your own decisions, learn from it and move on.
Never be afraid to make a mistake. But, only make mistakes that you can afford. So that, you may live to make another. If you are afraid to make a mistake, you cannot take any decision in life. Also, take responsibility for your own decisions, learn from them and move on.
Tips are injurious to health. You live in such a dynamic market, you need to constantly review your investments.
Tips are injurious to health. You live in such a dynamic market, you need to constantly review your investments.
There is nothing wrong with leverage as long as it is measured. Initially, I had no source of capital. So, I used leverage to build wealth. So, leverage has to be measured and without emotions. When it goes against you, no one is going to come and save you. Don't keep hoping, but act to reduce your leverage. When things go against you, you should square-off.
There is nothing wrong with leverage as long as it is measured. Initially, I had no source of capital. So, I used leverage to build wealth. So, leverage has to be measured and without emotions. When it goes against you, no one is going to come and save you. Don't keep hoping, but act to reduce your leverage. When things go against you, you should square off.
Trading is 'le phata phat…de phata phat'. Trading should be on a very short-term basis. Have a broad direction, know what to risk and know when to take a loss. In investing, you need conviction. Your patience will be tested, but your conviction will be rewarded.
Trading is 'le phata phat…de phata phat'. Trading should be on a very short-term basis. Have a broad direction, know what to risk and know when to take a loss. In investing, you need conviction. Your patience will be tested, but your conviction will be rewarded.
We extrapolate the two years’ worth of profits to the next 20-year period, without examining business models. It’s not the immediate (future) that matters. Does a mid-cap company have a great business model? Will there be demand for its products? Is the profit margin sustainable?
We extrapolate the two years’ worth of profits to the next 20-year period, without examining business models. It’s not the immediate (future) that matters. Does a mid-cap company have a great business model? Will there be demand for its products? Is the profit margin sustainable?
Markets are always right. If you think that you are the boss, you are always right, then you will land in no-man’s land.
Markets are always right. If you think that you are the boss, you are always right, then you will land in no-man’s land.
Stock market is a love market. You should be passionate. You should have some idea about financial statements. You should have more wisdom and less intelligence. The future is uncertain. How well you assess the future will depend on how well you invest today.
The stock market is a love market. You should be passionate. You should have some idea about financial statements. You should have more wisdom and less intelligence. The future is uncertain. How well you assess the future will depend on how well you invest today.
Moneycontrol PF Team
first published: Aug 14, 2022 03:35 pm
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