Rakesh Jhunjhunwala Birthday: Big bull Rakesh Jhunjhunwala is celebrating his 62nd birthday today, July 5, 2022. Rakesh Jhunjhunwala, also known as India’s own Warren Buffet, was born to an Indian tax officer in a middle-class family. The ace investor began trading the stock market in 1985, when he was in college. BSE Sensex was around 150 points at the time and he started investing with Rs 5,000 as capital. According to Forbes, Rakesh Jhunjhunwala’s net worth was $5 billion (Rs 39,527 crore) on July 5, 2022, a 15 percent zoom in one year of $4.6 billion (Rs 34,387 crore). He inspires millions of Indian investors, many of whom follow all his actions, recommendations and advice to the extreme.
Jhunjhunwala, who started his investment journey with a measly capital of Rs 5,000, this year also marks his 36th year on Dalal Street. According to the latest company shares filed, Rakesh Jhunjhunwala and associates publicly hold 33 shares with a net worth of more than Rs 25,842.3 crore. These stocks include Titan Company, Tata Motors, Star Health and Allied Insurance Company, Metro Brands, Fortis Healthcare, Nazara Technologies, Federal Bank, Delta Corp, DB Realty and Tata Communications, according to data from Trendlyne. His most valuable listed asset is watch and jewelry maker Titan Company, valued at Rs 8,830.9 crore; followed by Star Health and Allied Insurance Company with Rs 4,957.1 crore; and Metro Brands at Rs 2,391.3 crore.
In an interview with a Hindi news channel last May, Jhunjhunwala attributed his success in wealth creation to his firm belief in India’s growth potential.
Here are 7 investing lessons one can learn from the ace investor
‘Bhav Bhagwan Hai’
According to the Big Bull, always respect the price. At every price there is a buyer and a seller. Only the future determines who is right. Learn to respect what you can do wrong.
Be an optimist
If you call yourself an investor, you must fall into the opportunistic and optimistic category.
‘Emotional investment’ – a surefire way to make a loss
Investing in stocks can sometimes give you hard times when it comes to your ‘favourite’ stocks, especially when they don’t perform as expected. To overcome this situation, Jhunjhunwala says that “emotional investing” is a surefire way to lose money in the stock markets. Therefore, do not be guided by your own blindness about a stock, but make sure that you have the right tools in your investment pot.
Don’t borrow to invest
Markets can remain irrational more than the rational being can remain solvent.
Risk
The ace investor says investors should watch out for this four-letter word. Only invest what you can afford to lose in the short term.
You can’t always be right
One of the common myths we have is that successful investors are the best stock pickers and they are always right. But if you look at Jhunjhunwala’s track record, he has wasted a lot of time. However, despite these mistakes, Jhunjhunwala’s wealth is still growing, you know why. Here’s a secret if he’s wrong, of course he’s talking about all these losses, but if he’s right, he makes so much money on one stoke that all his losses on losing investments are negligible in comparison.
Have a lot of patience
One of the amazing qualities of Rakesh Jhunjhunwala is his immense patients with his supplies. He says he’s buying the company, not the stock, and as long as the company’s fundamentals are intact, he won’t even sell a single share. He has seen so many stock market cycles that he is not really afraid of the occasional stock market corrections. He knows that the next market would solve all his problems.
Jhunjhunwala, often referred to as India’s very own Warren Buffett, says bull markets are test competitions, not 50-a-day competitions.
Jhunjhunwala believes India is entering a new growth phase, with double-digit growth this year and decades to come. In an interview last month, he predicted that corporate profits will be 5-6 percent of GDP in FY22. Structural changes that have taken place in the economy are emerging, he said.
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