Jhunjhunwala died at the age of 62 in 2022 because of kidney related problems.
Born on July 5, 1960, this larger-than-life investor and trader was known for his penchant for identifying gems. While he was alive he managed an asset firm called Rare Enterprises. According to Trendlyne, his portfolio is currently managed by a team at Rare Enterprises headed by Utpal Sheth and Amit Goela.
Growing up in a Marwari family, he developed a passion for stock markets at a young age. None of the usual stuff that appealed to adolescents drew him as much as equities did.
A qualified Chartered Accountant, he invested in both his own name and his wife’s, Rekha Jhunjhunwala. He favoured stocks in the finance, tech, retail and pharma sectors.Also known as the Warren Buffett of India, his portfolio is among the ones widely tracked by investors. If Jhunjhunwala can be remembered for one thing, it would be his often mentioned quote: “Bhav bhagwan hai” (price is god).As per the latest corporate shareholdings compiled by Trendlyne, Rakesh Jhunjhunwala and Associates publicly holds 26 stocks with a net worth of over Rs 50,787.2 crore. Some of the stocks held in his portfolio include Nazara Technologies, Federal Bank, Canara Bank, NCC, Tata Communications, Tata Motors, Titan Company and Metro Brands.
Here, we explore some of his most impactful mantras:
Invest for the long term
Jhunjhunwala believed in the power of long-term investing. He famously said, “The stock market is a device for transferring money from the impatient to the patient.”. His success was a testament to this belief, as he held on to his investments through market fluctuations, reaping significant rewards over time.
Faith in a strong management
Emphasizing the significance of considering the management team’s competence, Jhunjhunwala famously stated, “Invest in businesses with a strong management team that has a proven track record.”
A practical market approach
Jhunjhunwala’s investment philosophy was encapsulated in his advice: “Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.” This quote reflects his pragmatic approach to investing. He believed in respecting market dynamics and remaining adaptable to new information.
Patience and discipline
Patience and discipline were at the core of Jhunjhunwala’s investment strategy. He urged investors to stay calm and avoid knee-jerk reactions to market movements. “Emotional investment is a sure way to make a loss in the stock market,” he remarked.
Learning from mistakes
He believed in the value of learning from mistakes and saw them as opportunities for growth. Jhunjhunwala once said, “Failures are part of life. If you don’t fail, you don’t learn. If you don’t learn, you’ll never change.”
Rakesh Jhunjhunwala’s legacy is built on these timeless principles, which continue to guide and inspire investors. His journey from a young investor to a market mogul underscores the power of patience, understanding, and unwavering belief in one’s investment strategy.
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