Ace investor late Rakesh Jhunjhunwala , often referred to as the Big Bull of the Indian stock market, passed away four years ago on this day. As investors remember him today on his fourth death anniversary, his investment philosophy will continue to live on and inspire generations to come.
The son of an income tax officer, Jhunjhunwala started making his mark on Dalal Street in 1985, when the BSE Sensex was young, at a mere 150 level. Starting his career with a humble Rs 5,000, Jhunjhunwala built a multi-billion dollar portfolio on Dalal Street. A qualified Chartered Accountant, he invested in both his own name and his wife, Rekha Jhunjhunwala. He favoured stocks in the finance, tech, retail and pharma sectors.
He passed away at the age of 62 on August 14, 2022, following a cardiac arrest. He was suffering from multiple health problems related to the heart, diabetes and kidney, according to sources. Also known as the Warren Buffett of India, his portfolio continues to remain among the ones widely tracked by investors.
The ‘Big Bull’ Jhunjhunwala believed in the power of long-term investing. His success was a testament to this belief, as he held on to his investments through market fluctuations, reaping significant rewards over time. “Hastily taken decisions always result in heavy losses. Take your own time before putting money in any stock,” he once said
Rakesh Jhunjhunwala's investment philosophy was encapsulated in his advice: "Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible." This quote reflects his pragmatic approach to investing. He believed in respecting market dynamics and remaining adaptable to new information.
The veteran investor called for patience and discipline when it came to investing. He urged investors to stay calm and avoid knee-jerk reactions to market movements. "Emotional investment is a sure way to make a loss in the stock market," he remarked.
Rakesh Jhunjhunwala believed in the value of learning from mistakes and saw them as opportunities for growth. He once said, "Failures are part of life. If you don’t fail, you don’t learn. If you don’t learn, you’ll never change." He also said that one cannot make profits in the stock market unless one can bear losses.
Highlighting the significance of considering the management team's competence, Jhunjhunwala famously stated, "Invest in businesses with a strong management team that has a proven track record." At the same time, he advised investors not to put in money at unreasonable valuations. “Never run for companies which are in limelight,” he once said.
Rakesh Jhunjhunwala's legacy is built on these timeless principles, which continue to guide and inspire investors. His journey from a young investor to a market mogul underscores the power of patience, understanding, and unwavering belief in one's investment strategy.