Rakesh Jhunjhunwala’s 5 strategies which can make you rich
Jhunjhunwala’s net worth is estimated at $5.5 billion, making him the 36th richest person in India. Rakesh Jhunjhunwala, 62, the self-proclaimed bull of the Indian stock market, died on Sunday morning.
According to Forbes, Jhunjhunwala has a net worth of $5.5 billion (about Rs 45,000 crore), making him the 36th richest person in India. Born on July 5, 1960, Jhunjunwala is the son of an income tax officer and hails from Jhunjunu district in Rajasthan.
He graduated from Sydenham College (University of Bombay) with a B.Com degree and then joined the Institute of Chartered Accountants of India. Jhunjhunwala started investing with $100 in 1985 and the BSE Sensex was trading at just 150.
He ran a private equity trading company called RARE Enterprises. Some of his biggest investments were Titan, CRISIL, Aurobindo Pharma, Praj Industries, NCC, Aptech Limited, Ion Exchange, Fortis Healthcare, Lupin, VIP Industries, Geojit Financial Services, Rallis India, Jubilant Life Sciences, etc. coins and gold. Recently, he invested 260 crores in the new low-cost carrier Akasha Airlines. Jhunjhunwala has also expressed an interest in film production and her charitable portfolio has included nutrition and education. He promised to donate 25% of his fortune to charity. His most valuable asset was the watch and jewelry maker Titan, which was part of the Tata conglomerate. After the blockade ended, Junjunwala was in a wheelchair when he met Prime Minister Narendra Modi.
Donations were made to Children’s Cancer Shelter, Agastya International Foundation and ARPAN, an organization that raises awareness of the sexual exploitation of children. Jhunjhunwala also supported Ashoka University, the Tribal Friends Association and Olympic Gold Quest. She was building an eye hospital in Navi Mumbai capable of performing 15,000 free eye surgeries.
Top investorBig Bull Rakesh Jhunjhunwala, who left for his heavenly abode this morning, was an optimist who always believed “the best (in the market) is yet to come”. His belief in the Indian market and his investment strategies made him a bull in the stock market.
Rajesh Junghunwala was a great Indian bull. He has always been very optimistic about India’s future. Many of his holdings have been based on picking companies that can benefit from India’s rapid growth and transformation. It was also a rare combination of a trader and an investor. He dared to trade against the overwhelming market sentiment, especially during bear markets. This has resulted in phenomenal wins on multiple occasions. He used these windfall gains to buy or add to long-term fundamental decisions when he was confident. This allowed him to multiply his wealth through a unique combination of short-term trading and long-term investing,” said Ashish Kapur, CEO, Invest Shoppe India Ltd. Starting with a small capital in the ’80s, he has built a huge portfolio worth hundreds of billions of dollars by betting heavily on strong-willed stock ideas, staying optimistic about India’s growth prospects, and accommodating big, daring and calculated requests to sell. A marketer will always miss her charm, optimism and audacity.
Here we take a look at the 5 investment strategies that made Rakesh Jhunjhunwala super-rich and what he looked like.
- Buy well and hold on
Jhunjunwala always has the belief of “buy well and sit still”. This means you should do your own research, buy the right stock, and then sit down for the right amount of time. Have faith in the company’s business. Don’t be intimidated by your investment decision.
- Never get emotional about your stock idea.
When Rakesh Jhunjhunwala turned 50, a reporter asked if he had (sometimes) feelings about his stock idea as a top investor. And Jhunjhunwala replied that if he has feelings, it is for his children, his wife and maybe his girlfriend, but he was certainly not as emotional about his stock. “I can’t say there’s no emotion when you invest such a long time, but it’s not an emotion that doesn’t go away,” he said.
This is a summary of Jhunjhunwala’s investment philosophy. Invest in the stock market (usually for the long term), but if you want to get rich, never get carried away by your stock market ideas and get out in time if necessary.
- Patience is the key to success
According to Groww, Jhunjhunwala did not become a money magnet overnight. It took years of research, diligence, and having his skin in the game to reach where he was. Jhunjhunwala’s portfolio corrected as much as 25-30% multiple times, but he always used this correction as an opportunity to buy in.
- Buy when others are selling and sell when others are buying
Jhunjhunwala always believed in going against the tide. He used to say – “Buy when others are selling and sell when others are buying.” He was, thus, against the herd mentality and wanted the market investors to use their own brain while investing. 5. Don’t invest in irrational ratings.
Do not invest in unreasonable valuations. Never apply for a company that attracts attention. – This is what Jonjunwala said. So whenever you see a stock trading at an unreasonable valuation, avoid it. Or you could lose your hard-earned money.
