Summary: Rakesh Jhunjhunwala is an investor with a midas touch. He is famously known as the Warren Buffett of India. Here are five investment lessons that will turn you into an ace investor.
Want to become a successful investor? Then why not learn from someone who has turned his 5000 rupees investment into INR 39,527 crores. Rakesh Jhunjhunwala, who is popularly known as India’s Warren Buffet started trading in the stock market back in 1985 during his college days. At that time BSE Sensex was at 150 points. He started investing with Rs. 5,000 as capital.
According to Forbes, his net worth stood at $5 billion (Rs 39, 527 crores), as of July 5, 2022. Rakesh Jhunjhunwala is not only one of the most successful investors in India, but he is also the most trustworthy and sought after by business moguls.
If you too want to learn some of the most useful lessons from the stock market, here is a list:
1. Don’t Rely on others Develop Passion For Stock Market Instead
When it comes to investing in the stock market, most often people rely on others for investment tips or suggestions. But Rakesh Jhunjhunwala suggests otherwise. His advice for the investors is to develop a passion for learning about the stock market by reading and talking with people who are seasoned investors.
Sharing his own experience he says that he used to ask his father about the nitty-gritty of the stock market. And that fascinated him, which eventually led to his passion for investing. Initially, he failed multiple times, but his interest never seemed to fade away.
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2. Patience Is a Virtue
Investment is a long-term proposition. If you are looking to make some quick bucks, you will have to face disappointment. To become a successful investor, you need to be aware that it will take a decade or more to see the results of your investments.
Rakesh Jhunjhunwala is a long-term investor. His investments did not give results overnight. He’s been investing in Titan Company Ltd, for over two decades now and has made over 1,000% returns on his initial investment in the stock. He says, “one should always invest in a company’s business, not its stock.” He does not sell shares even during a short time drop or stock market corrections.
3. Be Ready to Grab an Opportunity
One of the most key lessons from Rakesh Jhunjhunwala is that as an investor you should be ready to grab an opportunity. He firmly believes that the volatile nature of the market is what creates opportunities.
According to him, as an investor one must have the risk-taking ability. And you will never make money if you are afraid to lose it because the stock market is a game of nerves. Stock market success depends upon your character and temperament rather than on any other factors.
4. Avoid Investing Money Impulsively
Some people invest in a stock and that stock goes up. So, he or she decides to invest in another one impulsively rather than thinking logically. Making an emotional investment is one of the biggest mistakes that anyone can make while investing.
Jhunjhunwala believes that investors should learn how to control their emotions and behave like machines when it comes to making an investment decision. If you are a consistent investor, you need to have faith in the economic cycle and your investment philosophy. To be a great investor you need to go against your impulses and instincts and embrace some counterintuitive behaviors.
5. Invest in Businesses which is Hard to Replace
Always find businesses that offer products and services which are irreplaceable. Investing in such businesses will give you a competitive advantage. Rakesh Jhunjhunwala invests in businesses with wide moats when investing. Investing in such companies, he believes, gives investors a competitive edge of their own.
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