Thursday, September 29, 2011

Rakesh Jhunjhunwala: India’s Warren Buffet!

It is rightly said that ‘Example is not the main thing in influencing others, it is the only thing.’
Thereby India undoubtedly personifies Mr. Rakesh jhunjhunwala as our Indian Warren Buffet.
Rakesh JhunjhunwalaWarren Buffet, an American business magnate, investor, financier and philanthropist is the legendary investor of today. He is called the ‘Oracle Of Omaha’ for he is devoted to value investing philosophy and a firm believer in frugality. Much like him, Rakesh Jhunjhunwala also buys into the business model of a company by judging longevity and growth potential. The focus point is the ‘competitive ability’ and ‘management quality’ of a particular company.

Rakesh Jhunjhunwala, son of an income tax officer is a chartered accountant by qualification and an investor by profession.

* He started his career in this field soon after he graduated from Sydenham. He considers himself as the Big Bull of the market.
* He started with 5000 Rs when BSE Sensex was at 150. His first ever success was when he sold 5000 shares of Tata Tea @ 143 which he had purchased @ 43 with a time frame of 3 months, which showered upon him a profit of Rs. o.5 million.
* Subsequently, he could make his first million when he sold Sesagoa shares @ 1400 which he had bought at Rs. 27.
* It was the union budget 1990 which came as a turning point in his investing career, where he nearly made 5 times profit of his networth.

He manages his own portfolio as a partner in his asset management firm, Rare Enterprises. Currently he is India’s 45th richest man holding nearly 1.2 billion $.

Rakesh Jhunjhunwala carries some stock market ideologies with him which he has been following all through his investment career.

• Invest in a business and not any company.
• Maximise profits and minimize loses.
• Listen to others, but take your own decisions based on your own research.
• Be opportunistic but wait for the one to actually occur.
• Be happy with your gains but learn to accept losses with a smile.
• Historical stock prices help in predicting markets.
• Enter markets only if you are passionate about it.
• Patience may be tested but your conviction will be rewarded.
• Balance fear and greed.
• Invest for a long term.

Finally, he puts forth that ‘despite all- around optimism and extraordinary gains, never forget the risks and despite all around pessimism, never forget the opportunities.’

Last but not the least where most investors keep their eyes peeled:

Rakesh Jhunjhunwala is bullish on the stock markets for this year provided that monsoon keeps to the promised levels and crude remains below the dollar 100 mark, if recovers from the fear of the crisis. Moreover, he mentions that India may take 3-4 years to set, but finally it will lead to a double digit growth in economy.

Let the bottom hit,then markets are unlikely to shoot up.

Modesty being his best quality, he dislikes to be called as India’s Buffet
Source : niveza

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