Rakesh Jhunjhunwala is a Chartered Accountant by qualification but an investor / trader by profession. He is one of the most famous and respected equity investors in India and manages his own portfolio as a partner in his asset management firm, Rare Enterprises. He is tagged by the media as 'India's Warren Buffet' .For a man who purchased Tata Tea for Rs 5000 when he was only fifteen years old, Rakesh Jhunjhunwala has a total networth of ap-proximately Rs 6000 crore along with his wife Rekha Jhunjhunwala. Mr Jhunjhunwala is a canny stock picker for long term investment and reputed for his eye on macroeconomics. Much like Mr Warren Buffet, he buys into the business model of a company and for judging the longevity and growth potential, he gives top priority to 'competitive ability', 'scalability' and 'management quality' of the enterprise. According to Mr Jhunjhunwala, believing in the vision and the beliefs of the entrepreneur and validating the risks that may not be perceived by the entrepreneur are the key success factors for an investor. The typical traits to look for while identifying potential multi-baggers are - low institutional holding, under-researched and general pessimism about the stock.
Mr Jhunjhunwala has managed to identify numerous multi-baggers in the past decade, notable being Praj Industries, Crisil, Titan, Nagarjuna and PSUs like BEML and Bharat Electronics, among others. He says -A good time to sell a stock is not based on any 'price' targets, but when the 'earnings' expectations have peaked or the business model has peaked or the valuations appear ridiculously unreasonable.
Look out for “What is the Big Man bullish on?” at http://www.theequitydesk.com/rakesh_jhunjhunwala.asp
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5 comments:
Very interesting to read about RJ once again. I was reading a book called Happionaire's Cash The Crash and I simply loved it, that is how i got to know about RJ too.
I think it is one must-read book. Have you read it?
Hey Aditya,Thanks for your much appreciated comment.I didnt read the book yet.Do you have an e-copy of it?Do forward me the link and the reviews about your reading of the book.
I don't have an e-copy. I feel the experience of reading a nice hard cover book can never be replaced by a computer screen. I have not reviewed the book, however you can check out the book's website and blog. I think you can review the book for your other readers.
Yeah,will do the required soon...Thanks
I would be eagerly waiting to read your review and also share your views on a lot of revolutionary concepts shared by Yogesh.
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