Tuesday, November 23, 2010
RAKESH JHUNJHUNWALA = THE BIG BULL OF INDIAN MARKETS = What he says & does
What he says & does
Rakesh Jhunjhunwala is India’s most well known and successful Investor. He is one of the Big Bulls of India, who ardently believes in the India Growth Story.
He is a chartered accountant but started as a trader and investor in 1983. He runs his Rare Enterprises company from offices in Mumbai's Nariman Point business area. His company’s name ‘RARE’ is derived from the first 2 letters of him self and his wife : Rakesh + Rekha . Rakesh says, "My company has only one client -- my wife -- so that I don't need to handle others' money."
Let us look at some of his views – to understand his market philosophy – and perhaps, his life philosophy as well. I have made some of the key words in bold and italics, and have also inserted some comments in brackets, to amplify the context and the meaning of his words - for the benefit of readers.
What Rakesh says :
· ABOUT MARKETS:
· Markets are like women -- always commanding, mysterious, unpredictable and volatile.
· The market is always right. Markets cannot be taught, they have to be learnt.
· The country is poised to soon achieve a double-digit economic growth along with an impressive corporate profit growth. This is bound to drive the bourses
· It does not take rocket science to understand that India's economic growth will be in double digits.
· Study the market thoroughly. Refer to history
· Corrections, however sharp, are indispensable
· (As readers can see – Rakesh is extremely optimistic about the future prospects of India and Indian Markets. But, Markets are volatile and unpredictable. It presents many opportunities by its very nature itself. We need to seize these opportunities)
· ON INVESTOR TEMPERAMENT :
· If in doubt, listen to your heart.
· Necessary for any investor is optimism.
· Always have an independent opinion. Observe and read relevant information with an open mind.
· Be happy with your gains but learn to accept losses with a smile.
· Be opportunistic but wait for the right moment
· Do something you love
· Aspire, but never envy
· Be paranoid of success -- never take it for granted.
· Realise success can be temporary and transient
· The means are as important as the end.
· Be prepared for challenges and risks.
· Whatever you can do or dream - you can, begin it.
· Boldness has genius, power and magic in it.
· When you see a horizon, it seems so distant. When you reach that horizon, you will realize how many more horizons are within reach.
· We must have an attitude where we must balance fear and greed.
· Invest, have faith in India. It doesn’t change. It’s the same. Expect a reasonable return, invest for the long term, take expert advice, have faith in equities and India. That’s what I have done.
· (This is what the ace Investor, Rakesh wants us to have in our attitudes – if we are to succeed in Indian Markets).
· ON MARKET TACTICS & MOVES:
· Maximise profits and minimise losses.
· (What this means is :- Don’t hold on sentimentally to a company shares. Book Profits and Book Losses at the appropriate time)
· Invest in a business not a company.
· (What this means:– that you must look at the growth prospects of the business, the company is in, much more than the present profit and loss an balance sheet. You are looking at the future – not merely the present)
· Build a fighting spirit -- take the bad with the good.
· Don’t look for multibaggers. Don’t seek them at all. Let the multibaggers come to you.
· (Note : This means – Make your analysis, be absolutely satisfied about growth prospects of the company and invest. It will become a multi bagger)
· If your homework is right and you have invested in fundamentally sound companies with good growth prospects, your investments will by themselves become multibaggers with the passage of time.
· Look at the sources of Profits. What are the reasons that will give rise to Profits in the medium and long-term term.
· (This means :– do not just look at current profits – but look at where they came from, whether these sources of profit are stable and expanding or not. Look at their future scope)
· Look at the factors and circumstances that will create an opportunity for business in the sector.
· (This means : Look at future opportunities for the company’s business – whether it has sufficient growth potential or not)
· If there is value in Large Cap, buy it. If there is value in Small Cap, buy it. But don’t obsess on irrelevant matters.
· (This means :- whether large cap or small cap – look at its intrinsic value and growth potential and then BUY).
· Give your investments time to mature. Be Patient for the World to discover your gems. Never get carried away by aberrations, recognize and respect them but do remember that the market corrects its aberration though it takes time.
· (This is an excellent advice which Warren Buffet also repeats several times. Be Patient with your investments, allow them time to mature into their huge Potential)
· Don’t worry about things that you neither know about nor can do anything about. It’s not important. Instead focus your energies on what you can and should know well enough – the business of the company you are investing in.
· (This means : Macroeconomic factors, world economic factors etc are not that relevant in judging the Potential of a company. While you need not ignore them, know that your knowledge of them can be very limited and their effect on the long term prospects of your company also will be limited)
· If you see the opportunity today, GRAB IT! Many wonderful opportunities are lost to procrastination and then you rue your missed opportunities.
· (This means : Don’t wait for prices to fall to rock bottom to seize an excellent opportunity which you are seeing today. For long term investors, seizing today’s opportunity is more important)
· Panic selling during a sharp fall is the worst thing to do
· (As we can all see it – when prices are falling – many investors rush to the market to SELL!. That is the worst thing to do.)
· Stay invested and calm when the markets nosedive.
· (Markets will have corrections. What goes down will come up and with renewed vigour. Know that and stay calm)
· ON TRADING :
· I think for a retail investor, don’t trade please. Because I think 98% of retail people lose money in trade. Whether correction - no correction, bull phase – bear phase. Everyone has a sad story. The proof is in the statistics and we know people will say, you trade yourself but stop others from trading, I say dad used to drink whisky and asked us to refrain from it.
· What about HNIs? What would you tell them who are slightly more sophisticated? A: Don’t trade.
· HIS WEB SITE :
· Investors may also read his ‘secret Journal’ at http://www.rakeshjhunjhunwala.in/ - just to know his lively nature.
Let us now look at his current Portfolio :
Company :: Investor Name :: No. of Shares
Agro Tech Foods :: Rekha Jhunjhunwala :: 849559
Agro Tech Foods :: Rakesh Jhunjhunwala :: 1153700
APTECH :: Rekha Jhunjhunwala :: 2000000
APTECH :: Rakesh Jhunjhunwala :: 3152100
ALPHAGEO (INDIA) :: Rakesh Jhujhunwala :: 125000
AUTOLINE INDUSTRIES :: Rakesh Jhunjhunwala :: 520000
AUTOLINE INDUSTRIES :: Rekha Jhunjhunwala :: 731233
Bilcare :: Jhunjhunwala Rakesh Radheshyam :: 1735425
Bilcare :: Jhunjhunwala Rekha Rakesh :: 267500
Crisil :: Jhunjhunwala Rakesh Radheshyam :: 550000
GEOJIT BNP PARIBAS FINANCIAL SERVICES :: Rakesh Jhunjhunwala :: 18000000
Geometric :: Jhunjhunwala Rakesh Radheshyam :: 3955000
Geometric :: Rekha Jhunjhunwala :: 850000
HINDUSTAN OIL EXPLORATION COMPANY :: Jhunjhunwala Rekha Rakesh :: 1887273
HINDUSTAN OIL EXPLORATION COMPANY :: Jhunjhunwala Rakesh Radheshyam :: 4785143
ION EXCHANGE (INDIA) :: Rakesh Jhunjhunwala :: 650,000
KAJARIA CERAMICS :: Rakesh Jhunjhunwala :: 2502642
KARUR VYSYA BANK :: Rakesh Jhunjhunwala Group :: 2041172
Lupin Ltd :: Jhunjhunwala Rakesh Radheshyam :: 2183581
Lupin Ltd :: Jhunjhunwala Rekha Rakesh :: 1065254
Mcnally Bharat Engineering Company :: Jhunjhunwala Rekha Rakesh :: 480078
Pantaloon Retail (India) Ltd.-B-Dvr :: Jhunjhunwala Rekha Rakesh :: 210589
PRAJ INDUSTRIES :: Rakesh Jhunjhunwala :: 11678624
Prime Focus :: Jhunjhunwala Rakesh Radheshyam :: 250000
Prime Focus :: Jhunjhunwala Rekha Rakesh :: 632500
PROVOGUE (INDIA) ::Rakesh Jhunjhunwala :: 1900000
PUNJ LLOYD :: Rakesh Jhunjhunwala :: 3790000
Rallis India :: Jhunjhunwala Rakesh Radheshyam :: 602007
RISHI LASER :: Rakesh Jhunjhunwala :: 380,000
Srei Infrastructure Finance :: Jhunjhunwala Rekha Rakesh :: 1250000
Titan Industries :: Jhunjhunwala Rakesh Radheshyam :: 2828455
Titan Industries :: Jhunjhunwala Rekha Rakesh :: 981694
V.I.P.Industries :: Jhunjhunwala Rakesh Radheshyam :: 380000
Viceroy Hotels :: Jhunjhunwala Rakesh Radheshyam :: 4250000
Viceroy Hotels :: Jhunjhunwala Rekha Rakesh :: 500000
ZEN TECHNOLOGIES :: Rekha Jhunjhunwala :: 450,000
ZEN TECHNOLOGIES :: Rakesh Jhunjhunwala :: 450,000
At the end, this blog wishes Rakesh Jhunjhunwala all success and prosperity in future as well. He is adorable and admirable for the sheer optimism he spreads all around him and is therefore the Biggest Bull of Indian Markets.
We want to see and hear more and more of such success stories in India. This Blog also wishes readers the same (and even higher) level of success as Rakesh in future.
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