Wednesday, August 20, 2008

Rakesh Jhunjhunwala Investment motto: Buy right and hold tight.



Investment motto: Buy right and hold tight.
Rakesh Jhunjhunwala is a famous Indian trader who is often referred as “India’s Warren Buffett”. He believed in the “India story” made a good fortune from it. He is not only an aggressive trader but also a successful investor. He spotted opportunities in good companies like Praj Industries, Pantaloon Retail, Titan, CRISIL, Lupin and Punj Lloyd.etc when no one is interested in them.
Rakesh Jhunjhunwala (RJ) stated investing career in 1983 and used to put in 15-16 working hours in his early days. His company name is “Rare Enterprises”. He was ranked at 1,062 in the Forbes Billionaire list. Like Warren Buffett, he was fond of stocks from his childhood days. He was nicknamed as “Young Tiger” in the early 90’s (Harshad Mehta days).

Profession: Chartered Accountant.
Passion: Stock Markets.

Biggest award: One of India's best five investors by Business India magazine in 1998.
His wealth: Around Rs 5,000 crore. He started his investing career with Rs 5,000.
His assets: Passion and confidence.

Success secrets:
1. He rarely invests in index stocks. He is an expert in picking value stocks when no one is noticed them. He invested in stocks like BEML and other PSU Stocks when everyone looked at technology stocks in early 2000.
2. Confine your portfolio to 15-20 stocks. Invest for long term to get good returns.
3. Stay away from cyclical stocks.
4. To get exceptional returns, you need to take risks.
5. He generally stays away from commodity stocks and index stocks. But he recently bought some steel stocks.
6. Like Jack Welch of GE, he believes in extensive reading and learning.

Famous quotes:
1. Markets are like women -- always commanding, mysterious, unpredictable and volatile.
2. Anticipate trend and benefit from it. Traders should go against human nature.
3. Don’t insult the great man (Warren Buffett) by comparing me to him.
4. Successful investors are opportunistic and optimistic ones.
5. Growth comes out of chaos.
6. Market is above individuals. The market is rational. An individual can never be smarter than the market
7. Maximise profits and minimise losses.
8. Invest in a business not a company.
9. Emotional investment is a sure way to make loss in stock markets.
10. I don’t advice anybody. I don’t manage anybody’s money.

15 Stock investment tips from Rakesh Jhunjhunwala:

1. Always go against tide. Buy when others are selling and sell when others are buying.
2. If you believe in the growth prospects of a company, invest in the stock and give it sufficient time.
3. Be an optimist. Pessimistic investors always lose money in stock markets.
4. Greedy investors will never make money in stock markets. Book profits after reaching your target price.
5. Never put your hard earned money without proper research. Never invest according to “Stock tips”.
6. You have to lose many a battle to win the war. This Winston Churchill quote is always quoted by Jhunjhunwala. Balance fear and greed.
7. Never react and change your investment decisions according to daily business news. Panic selling is a bad habit.
8. Hastily taken decisions always result in heavy losses. Take your own time before putting money in any stock.
9. Invest in companies which have strong management and competitive advantage.

10. Stock markets are always right. Never time the markets.

11. Opportunities will come and go. Are you prepared to grab them?
12. Never invest at unreasonable valuations. Never run for companies which are in limelight.
13. Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.
14. Means are important. Read and analyse the available information with an open mind and look for opportunities.
15. Prepare for losses. Losses are part and parcel of stock market investor life. Learn from mistakes. Learn to take a loss.

Disciplined passionate investors like Rakesh Jhunjhunwala are always inspirational figures for young investors. One can make a good fortune in stock markets if you follow his investment ideas and principles.

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