Top 5 Investment Lessons from Rakesh Jhunjhunwala for Young Investors
Summary: Rakesh
Jhunjhunwala is an investor with a midas touch. He is famously known as the
Warren Buffet 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.
You too can hire a
business coach who can give you sound advice based on his years of
experience and knowledge to help you grow your startup business.
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.
Just like stock
markets, it is essential to make decisions that are good for your business
growth. And to ensure that you are on the right path, you can hire a business
coach.
The idea of
managing a business is easier said than done and we completely agree with you.
This is why to help you move forward with your business goals, we at Bada
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