Rakesh Jhunjhunwala, the "Indian Warren Buffett" gave some valuable tips on investing in Indian stocks. He was nicknamed as "Young tiger" during Harshad Mehta days. Like Buffett, he started investing in shares from his young days. He made a good fortune by investing in valuable madcaps. He is an inspirational figure for many young Indians who want to make money in stock markets. Jhunjhunwala is an active trader and disciplined value investors who believes in long term
Rakesh Jhunjhunwala (RJ) started 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).
Rakesh Jhunjhunwala's Investments:
Rakesh Jhunjhunwala is a partner in his asset management firm, Rare Enterprises. He is a Chartered Accountant by profession. He has been a keen and active participant in Indian Capital Markets since 1985. He has been profiled as one of
He is still one of the country’s richest individual investors, even after a market nosedive since January. At last count, his investment in 26 listed companies was worth over Rs 2,200 crore.
The figure was Rs 1,747 crore higher at the beginning of the calendar year. A nearly 30 per cent write-down in the Sensex since then has pared his investments in the listed stocks. Of course, he could be owning a lot of unlisted stocks, the knowledge of which is not in the public domain. The 26 listed stocks are those where his and his wife Rekha’s holdings are more than one per cent, the level which triggers mandatory disclosure under Bombay Stock Exchange rules.
His biggest holding is in Titan Industries. He has 9 per cent, or Rs 509.83 crore, of the company’s capital. At its peak last October, his Titan shares were worth Rs 715.44 crore.
Among his other holdings are Praj Industries (Rs 256.49 crore worth of shares), Lupin Labs (Rs 212.10 crore), Crisil (Rs 200.75 crore), Punj Lloyd (Rs 141.34 crore), Bilcare (Rs 133.85 crore), Nagarjuna Constructions (Rs 105.38 crore), Geojit Financial (Rs 88.58 crore), Karur Vysya Bank (Rs 86.79 crore), Pantaloon (Rs 85.77 crore), Bhushan Steel (Rs 73.75 crore), Viceroy Hotels (Rs 67.16 crore) and Prime Focus (Rs 41.03 crore).
“RJ is a man who sees the day after tomorrow. A long-term player, he invests for 16-17 years,” said Vijay Kedia of Kedia Securities, who like Jhunjhunwala buys stocks with a long-term horizon. A case in point is Karur Vyasya Bank. Jhunjhunwala, who is a chartered accountant by profession, bought shares of the bank way back in 1992 and still holds some.
Last year, Forbes magazine placed him as the 51st richest Indian.
Some of the other holdings of Jhunjhunwala, who started dabbling in stocks while in college, are Rishi Lazer, in which he has invested Rs 2.62 crore, Dwarikesh Sugar (with investment of Rs 3.73 crore), MRO TEK (Rs 2.90 crore), Autoline Industries (Rs 22.77 crore), JB Chemicals (Rs 4.83 crore), Alphageo (Rs 5.12 crore), Mid-day (Rs 5.93 crore), Zenotech (Rs 12.70 crore), Geometric (Rs 16.78 crore), Agrotech Foods (Rs 23 crore), Infotech Media (Rs 23.19 crore), Gareware Wall (Rs 4.20 crore) and Provogue (Rs 31.95 crore).
Stock Market investment tips from Rakesh Jhunjhunwala :
1. You have to wait for right moment before investing in stocks. Never invest in any stock with proper idea on its business and fundamentals.
2. First quality every investor should have is optimism. Ups and downs are common in stock movements but patience ultimately wins.
3. Monitor price moments regularly. Don't forget the past history of stocks. Never take decisions in hurry.
4. Believe in markets. Markets always do right thing in long term. Do not speculate.
5. Never miss good investment opportunities. If you find them, grab them with both hands.
6. Price at which you buy a stock is very important. Look for the opportunities around with a keen eye.
7. Maximize the profits and minimize the losses. Don't forget this basic rule.
8. Invest in a business not a company.
9. Don't look for excess profits in an over valued economy. Greed is not good for Stock Market investors.
10. Investing is not my profession. It is my passion.
11. You should have your independent opinion. Keenly observe and read relevant information with an open mind. Means are very important. Never follow herds.
12. Learning is a continuous process. Learn to accept losses with smile.
13. Ready for challenges and risks. If you want to win a war, you have to lose many wars.
14. You are not a owner of the wealth. You are a just trustee.
15. Always go against tide. Buy when others are selling and sell when others are buying.
16. Emotional investment is a sure way to make loss in stock markets.
17. Market is above individuals. The market is rational. An individual can never be smarter than the market.
18. If you believe in the growth prospects of a company, invest in the stock and give it sufficient time.
19. Be an optimist. Pessimistic investors always lose money in stock markets.
20. Greedy investors will never make money in stock markets. Book profits after reaching
your target price.
21. Never put your hard earned money without properresearch. Never invest according to “Stock tips”.
22. You have to lose many a battle to win the war. This Winston Churchill quote is always quoted by Jhunjhunwala. Balance fear and greed.
bad habit.
24. Hastily taken decisions mostly result in heavy losses. Take your own time before putting money in any stock.
25. Invest in companies which have strong management and competitive advantage.
26. Stock markets are always right. Never blame the market.
27. Never invest at unreasonable valuations. Never run for companies which are in limelight.
28. Passionate investors always make money in stock markets. You will never fail in any work if you do
it with passion.
Learn to take a loss.
30. Anticipate trend and benefit from it. Traders should go against human nature.
31. Opportunities will come and go. Are you prepared to grab them?
