Rakesh Jhunjhunwala was one of India’s most successful investors. Rakesh started investing in 1985 with Rs. 5000 when BSE Index was at 150. Rakesh Jhunjhunwala is also referred to as the Warren Buffett of India and the Big Bull.
Strategy for investing-
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Invest in fundamentally strong companies with competitive management- Rakesh Jhunjhunwala’s portfolio shows that he always believed in investing in companies with solid management and fundamentals.
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Be able to sit through losses during difficult times of the market- After finding strong companies, stay invested and be patient during difficult times to make profits.
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Keep emotions in check- Keep emotions away to make massive profits.
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Don’t invest in companies with inflated valuations- Investing in companies with inflated valuations can significantly damage your portfolio.
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Learn from experience- Rakesh Jhunjhunwala treated markets as his Guru and always learned from his past experiences.
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Do not follow herd mentality- He believed in going against the crowd, buying when others are selling and selling when all are buying.
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Look out for new investing opportunities- “When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot those.”- Rakesh Jhunjhunwala.
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Don’t make hasty decisions- He believed in taking time before investing as taking hasty decisions can incur heavy losses.
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Respect the markets- He didn’t believe in timing the market and was responsible and learned from all bads and goods.