Rakesh Jhunjhunwala started trading the markets in 1985 at the age of 25 years right after completing his Charted Accountant (CA). He got the inclination to invest in the markets from his father who himself invest in the stocks.
But from the beginning he was clear that to trade or invest the market, he has to arrange the capital on his own. He started with his saved money of Rs. 5000 and got his funding from friends and known.
His some for the best investment returns are in the stocks he invested a decade ago. Stocks like Titan, Lupin, and Crisil are the top three stocks in his investment portfolio which constitutes more than half of the his total portfolio value of 8000+ crores.
His average absolute return on stocks he held for at least 10 years was a staggering 3,271.52% while his average return on stocks he held for less than a year was 9.23%.
Read how a young dreamer with no capital become the investment guru and a role model for all aspiring traders and investors entering the trading arena. Read from the link below the investing and trading philosophy of the most admired Indian Stock Trader & Investor – Rakesh Jhunjhunwala. How he spotted some of his best investments that worked well for him and became his multi-bagger investments? The Story behind investments in Titan, Lupin, Crisil which generated him returns of more than 13000%, 8000% and 5000% respectively.
Investment Philosophies According to Rakesh Jhunjhunwala
#1. Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.
#2. In the market you have to be like a chameleon, always changing your colors and going with the trend. You’re lost if you try to go against it.
#3. Never in my life have I not made an investment because the stock is not popular. In fact I like to make the investment when the stock is not popular.
#4. Mistakes are your learning friend. The idea is to keep these mistakes small.
#5. If a girl is beautiful a suitor will come. If a stock is beautiful, a suitor will come. So I don’t search for suitors when I buy the stock.
#6. I think it is as important as what you buy, as it is more important what price you buy.
#7. Always be clear with whether you are Trading or Investing.
#8. Do research before buying a stock and not after buying.
#9. I never sell my positions only on the basis of fundamentals and opinions but also according to the market conditions.
#10. Put money where your mouth is.
#11. At present, India is running without shoes i.e with lack of infrastructure, and lot of corruption and see how we are doing. So, understand what if India is with Shoes?
#12. Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.
#13. Don`t let your trades turn into your long term investments.
#14. Have some cash in hand so that you can grab the opportunity when it occurs.
KNOWLEDGE IS POWER!