Source: http://www.niveza.in/investor-portfolio-RakeshJhunjhunwala?

gclid=CLn00o7wuLACFQR66wodulOj7A Biography
Just think of investing in the Indian stock markets, and the first name that clicks our mind is Rakesh Jhunjhunwala. All the investors follow this axiom "look before you leap", when they consider Rakesh Jhunjhunwala's view on a particular stock before entering into it. This is the sole reason why Rakesh Jhunjhunwala is called as the Guru investor of the Indian stock markets. Rakesh Jhunjhunwala is one of the highly acclaimed and most respected equity investors in India. Rakesh Jhunjhunwala manages his own investor portfolio which is purely based on the fundamental analysis and value investing strategies. Rather Rakesh Jhunjhunwala and Value investing can be used as synonyms. Rakesh Jhunjhunwala stock picks the low price tagged stocks from the scrap by recognizing its true worth for his long term investments. Rakesh Jhunjhunwala's choice of stocks involve the unloved small-cap and mid-cap stocks. For this quality of his, Rakesh Jhunjhunwala is often called as Warren Buffett of India. Rakesh Jhunjhunwala portfolio is published in the newspapers or announced on the televisions. Rakesh Jhunjhunwala himself shares his stock picks or any changes in his holdings through media. Most value investors in India aspire to be like Rakesh Jhunjhunwala and regard him as the value investing guru. But Rakesh Jhunjhunwala considers Mr Radhakrishna Damani as his guru (mentor) and a best friend. Our very own Bear, Mr Shankar Sharma, the managing director of first global and the biggest rival of the Bull, Rakesh Jhunjhunwala introduces Rakesh Jhunjhunwala as a classic bottom-up stock picker, who gets into companies with strong managements and/or compelling long-term stories and then holds them through market cycles. Further he says, "I can't see too many flaws in Rakesh Jhunjhunwala's make-up as a long-term investor." Rakesh Jhunjhunwala says his fascination with balance sheets began young. "Since childhood I had love for stocks,"he says. Rakesh Jhunjhunwala's father was an ITO and invested a bit in the stock markets and discussed his holdings with him. Rakesh jhunjhunwala further says,"I was a very curious child, so I was always quizzing my dad." He said,"Instead of quizzing me all the time, why don't you find out yourself." This was the beginning of Rakesh Jhunjhunwala's journey into the real stock markets soon after he graduated from the Sydneham College. Rakesh Jhunmhunwala is a Chartered Accountant by qualification and investor by profession, one of the very few successful persons who could make their hobby, their profession! Rakesh Jhunjhunwala entered the market in 1984, aged 25, with a 5,000-rupee investment in the iron-ore exporter Sesa Goa. Just three years later, those 5000 bugs turned into 10 million rupees. Hats off his value investing strategies. For this Rakesh Jhunjhunwala also shares the title "sage of omaha". With the experience of not more than 25 years in the stock market, Rakesh Jhunjhunwala started his own entity named Rare Enterprises at Nariman Point, Mumbai. As a tribute to all his investment gurus, the walls in Rakesh Jhunjhunwala's office bear line drawings of Mr. Warren Buffet, George Soros, John templeton, Peter Lynch and many more. Currently Rakesh Jhunjhunwala is India's 45th richest man holding nearly 1.2 billion $. As a part of his duty towards his society, Rakesh Jhunjhunwala has pledged that he will donate one fourth of his wealth during his lifetime through Rakesh Jhunjhunwala foundation. He assures $ 1 billion by 2020. Rakesh Jhunjhunwala also offers his helping hand to Agastya International Foundation and the State Of Philanthropy In India periodically.

Rakesh Jhunjhunwala & his Investment Proficiencies

When you aspire to be like 'someone' you curiously try & adopt his success secrets. Ralph Emerson rightly quotes that Curiosity is lying in wait for every secret. But few 'someones' themselves reveal their success mantras. So if you aspire to succeed like Rakesh Jhunjhunwala in the Indian stock markets, be sure that your wait for Rakesh Jhunjhunwala's secrets are over. Rakesh Jhunjhunwala shares some necessary tips for amateur investors: Rakesh Jhunjhunwala says,Be Optimistic & hope for the best: According to Rakesh Jhunjhunwala, Stock market is never cent percent predictable and the investors might come across ups and downs. Rakesh Jhunjhunwala asks investors to be optimistic for further opportunities, instead of craving about past realities. Rakesh Jhunjhunwala says, Play with mind not emotions: Indian stock market trends move on mass human psychology of greed and fear. Rakesh Jhunjhunwala states that generally in profits investors tend to be greedy for more and hold their positions instead of squaring off during stock market peaks. During bottom-finishing sell-off with a fear of further losses. Here, Rakesh

Jhunjhunwala suggets to be greedy when others fear and fear when others are greedy. Rakesh Jhunjhunwala says, Play with descipline: If you consider stock market as a game then it comes with some rules. Rakesh Jhunjhunwala asks you to decide your profit and loss booking before entering any trade. Every successful investor like Rakesh Jhunjhunwala make us aware that the risen stock market has to fall and at bottoms if there are no external factors to affect, the stock market has to rise. Rakesh Jhunjhunwala says, Risk is Inevitable: As per Rakesh Jhunjhunwala's experience, Risks and rewards sometimes go hand-in-hand, so higher the risks higher are the rewards. Rakesh Jhunjhunwala says that if one wishes to earn higher, he should be prepared to bear losses too because probability of earning to losing is 1:1. Rakesh Jhunjhunwala says, No thumb rules, so be flexible: Rakesh Jhunjhunwala is aware that stock market works on the principals of demand and supply and investment psychology which cannot be set into rules or predicted. Investor is often very rigid about accepting that the share prices can fall when he is holding and can rise when he has shorted. According to Rakesh Jhunjhunwala, one should be flexible to average out when necessary. Rakesh Jhunjhunwala asks investors to know what, when, & how much of the stock markets: According to Rakesh Jhunjhunwala, Demographic factors and diversification are important to build your investment portfolio. Your age, salary etc should match your investment. What to buy depends on the fundamentals of the company and price movements will suggest when to enter & exit. How much will depend on your spending capabilities. Rakesh Jhunjhunwala focuses on Patience: Rakesh Jhunjhunwala insists investors to Have conviction. Rakesh Jhunjhunwala also insists to be patient. Your patience may be tested, but your conviction will be rewarded. Make exit an independent decision, not driven by profit or loss.

Rakesh Jhunjhunwala : An Open Book !!

Rakesh Jhunjhunwala personifies the idiom "The greatest Secret of success is when there is no secret!" With this positive attitude, Rakesh Jhunjhunwala shares all his investment techniques with the stock market world. Rakesh Jhunjhunwala reveals his investment portfolio and strategies periodically through his seminars and interviews. Rakesh jhunjhunwala and Rakesh Jhunjhunwala's portfolio very well explicate his investment techniques in a systematized and simplistic manner: Asset Allocation and Compounding: Risk is inevitable when we talk of stock markets and hence Rakesh Jhunjhunwala suggests that one should invest only that amount from his savings which he can afford to lose! To add to it, one should consider other demographic factors like age, education and number of Dependants. Rakesh Jhunjhunwala states that, let the money rest for wealth creation through compounding. Article of faith: If one wants to succeed like Rakesh Jhunhunwala, conviction is a must. One should know and believe in what one is doing. This comfort level will further guide one in how,when and in what to invest. Rakesh Jhunjhunwala thereby expects an investor to be realistic, flexible and patient. Deep study of price movements depicts one's entry and exit in the stock markets and the study of company business can guide one in value investment like Rakesh Jhunjhunwala. Investor should be Flexible & unbiased: Its a common investor tendency that if he buys any NSE stock from any sector, he expects the market to be Bullish and bearish, off course when he sells them. Unfortunately, exactly opposite happens! According to Rakesh Jhunjhunwala, one should accept his mistake and learn from it instead of having superficial expectations. Rakesh Jhunjhunwala duly follows the idiom,'Stay committed to your decisions, but stay flexible in your approach'. Handle Capital with care: Capital is a catalyst in the stock market and hence Rakesh Jhunjhunwala expects one should spend his capital wisely. In the absence of capital, returns and compounding is out of question says Rakesh Jhunjhunwala. Ultimately Rakesh Jhunjhunwala convinces the investors that, investment does not relate only to betting your money into stock but buying a part of a business that entitles you to be the owner of that part!

"People In My Life": Rakesh Jhunjhunwala

Rakesh Jhunjhunwala quite resembles Mr Warren Buffett in being a firm believer in Long term investment based on value investing and also for his philanthropic attitude. Rakesh Jhunjhunwala is the most followed equity investor in India and manages his own portfolio. Rakesh Jhunjhunwala is a Warren Buffett of Indian Stock markets! Everyone desires to be like someone when he initializes any work. Rakesh Jhunjhunwala is not an exception to this. Rakesh Jhunjhunwala treated Radhakrishnan Damani as his Guru, Mentor and also a best friend. Radhkrishnan Damani, not

publicized but is a reputed value investor of 80s and 90s who built his investor portfolio by identifying the best MNC stocks. Successful speculation is one of his characteristics. Some people don't share any relation, but indirectly contribute a lot to our life. Somewhat similar was the case with Mr Madhu Dandavate, a former Finance Minister of India during 1989-90. Rakesh Jhunjhunwala states that the Indian stock market was exceedingly bearish then and the Ministry was expected to hike taxes for its liquidity means. Rakesh Jhunjhunwala, the only Bull then went on buying which turned out to be very optimistic for the Budget decisions and Madhu Dandavate's Budget gave a turning point to Rakesh Jhunjhunwala's investing career. Rakesh Jhunjhunwala initiated the importance of pre-event rallies in the stock markets. Rakesh Jhunjhunwala built his own investing strategies and some are influenced by trading strategies of Mr George Soros and analysis of economic history by Dr Marc Faber. The greatest strategy followed by Rakesh Jhunjhunwala is "the trend is our friend" and hence Rakesh Jhunjhunwala believes that one should camouflage himself in the market trends. The greatest and true appreciation would come only from your enemies. The stock market Bear and the biggest rival of Rakesh Jhunjhunwala , Mr Shankar Sharma introduces Rakesh Jhunjhunwala as a classic bottom-up stock picker, who gets into companies with strong managements and/or compelling long-term stories and then holds them through market cycles. There are no too many flaws in Rakesh Jhunjhunwala's make-up as a long-term investor. Behind every successful man there is a woman. Rekha Rakesh Jhunjhunwala has played a major role in building Rakesh Jhunjhunwala's investment career. Rakesh Jhunjhunwala and his wife together set-up an Asset Management Firm Rare Enterprises. She has very well performed both the roles. Rakesh Jhunjhunwala says,"The only person that I have to answer to is my wife, and she just wants to know what the absolute returns are, not whether I am beating the market"..:)

Rakesh Jhunjhunwala: India's Warren Buffet!

It is rightly said that 'Example is not the main thing in influencing others, it is the only thing.' Thereby India undoubtedly personifies Mr.Rakesh jhunjhunwala as our Indian Warren Buffet. Warren Buffet, an American business magnate, investor, financier and philanthropist is the legendary investor of today. He is called the 'Oracle Of Omaha' for he is devoted to value investing philosophy and a firm believer in frugality. Much like him, Rakesh Jhunjhunwala also buys into the business model of a company by judging longevity and growth potential. The focus point is the 'competitive ability' and 'management quality' of a particular company. Rakesh Jhunjhunwala, son of an income tax officer is a chartered accountant by qualification and an investor by profession. He started his career in this field soon after he graduated from Sydenham. He considers himself as the Big Bull of the market. He started with 5000 Rs when BSE Sensex was at 150. His first ever success was when he sold 5000 shares of Tata Tea @ 143 which he had purchased @ 43 with a time frame of 3 months, which showered upon him a profit of Rs. o.5 million. Subsequently, he could make his first million when he sold Sesagoa shares @ 1400 which he had bought at Rs. 27. It was the union budget 1990 which came as a turning point in his investing career, where he nearly made 5 times profit of his networth. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises. Currently he is India's 45th richest man holding nearly 1.2 billion $. Rakesh Jhunjhunwala carries some stock market ideologies with him which he has been following all through his investment career. ? Invest in a business and not any company. ? Maximise profits and minimize loses. ? Listen to others, but take your own decisions based on your own research. ? Be opportunistic but wait for the one to actually occur. ? Be happy with your gains but learn to accept losses with a smile. ? Historical stock prices help in predicting markets. ? Enter markets only if you are passionate about it. ? Patience may be tested but your conviction will be rewarded. ? Balance fear and greed. ? Invest for a long term. Finally, he puts forth that 'despite all- around optimism and extraordinary gains, never forget the risks and despite all

around pessimism, never forget the opportunities.' Last but not the least where most investors keep their eyes peeled: Rakesh Jhunjhunwala is bullish on the stock markets for this year provided that monsoon keeps to the promised levels and crude remains below the dollar 100 mark, if recovers from the fear of the crisis. Moreover, he mentions that India may take 3-4 years to set, but finally it will lead to a double digit growth in economy. Let the bottom hit,then markets are unlikely to shoot up. Modesty being his best quality, he dislikes to be called as India's Buffet...

A Roller-Coaster Ride For The Investors

The stock market opened with a gap-down as a result of continued panic selling due to the US debt crisis. However, in the later half of the session PM's consoling words of wisdom strived to pull the market upwards. Ultimately stock markets ended making a Doji pattern indicating a roller coaster (volatility). Nifty traded below 5000 levels but managed to trade above these levels with oscillators too lying in the oversold zone. Moreover, our very own investor guru Rakesh Jhunjhunwala says "the long-term story of India is not lost but markets are unlikely to shoot up after a hitting bottom." Our legendary investor Warren Buffet states that he has not yet seen anything that suggests another downturn is emerging. RBI relieved investors....stating that it had sufficient liquid reserves to meet demand for Forex even in stress situations because of the strong fundamentals. Pranav Mukherjee added that markets are in the process of stabilization. The rate hikes were only to prevent volatility in the markets. It was important to bring down the inflation and inflationary expectations and thereby curb demand pressures. Moreover, it warned that in case the economic slowdown continues and there is a strong reading on IIP data, it might have to hike the rates again in September, 2011 by 25 bps. Gold prices hit the record... due to the equity market collapse, investors were more inclined towards bullion trading to make the record, closing higher to 16490 Rs per 10 gms. The value of Indian rupee degraded due to oil importers demand for dollars and and weak domestic shares. Revival of monsoon rains.... monsoon showered its blessings in the rice, oilseeds, lentils and cereals growing regions thereby improving output prospects. This fall was estimated last week. However, food inflation continues to rise. It recorded a 4.5 months high at the end of July which attributed to a rise in prices of vegetables, specifically onion and meat and milk products. Markets across the globe..... European markets experienced a rally at the end of the week as a result of ban on short-selling which resulted in a rebound. US market trading continued to be quite volatile, and the large-cap indexes rose. Gains were far from being across the board. Asian markets ended mixed as the strength in the yen pressured Japanese exporters and China and Australia managed to close positive. Sectoral performances... Banking sector followed the footsteps of the markets, energy slowed down further, IT and PSU banks degraded nearly 2%, Four wheeler industry experienced nearly 15-16% set back, other all sectors also traded with a negative bias but gave a less negative impact that the above mentioned sectors. What next.... We maintain our view of 5000 as a support for nifty. Nifty traded below these levels but fortunately couldn't close below. Once this is broken on closing basis the next support at 4800 levels is expected. However, nifty might give a correction at these levels after a consistent fall for last 3 weeks. This is because market was highly choppy and volatile last week, to close almost at those levels where it opened to form a Doji pattern which would be confirmed in the coming week. Moreover the markets are lying in the oversold zone. Now the markets may correct up to 5340-5400 levels and give another indication of a fall or continue to fall further unless economy shows some positive sign. So let's react after the gurus act......

Rakesh Jhunjhunwala on Value Investing

Stock markets have always been a center of much discussion amongst the economists and guru investors like Rakesh Jhunjhunwala. Rakesh Jhunjhunwala and other Expert investors have their own propositions about the Indian Economy, and the type of investments they would want to make whether the market is bullish or not. Value investing has been a favorite topic where investors have a varied opinion and seek guidance from an investment guru. Value investing inspires Rakesh Jhunjhunwala holdings. Stating the views of Rakesh Jhunjhunwala on Value Investing, looking for a stock that is trading at a value, lower than it's expected or intrinsic value, but at the same time have the insight to judge the future prospects of the company.

Rakesh Jhunjhunwala lays emphasis on estimating the future scales of the company by analyzing its trends and doing a research in the factors that influence. Rakesh Jhunjhunwala, also referred to as the Indian Warren Buffett, explains how to understand the market capitalization of a company that an investor wants to have a value investment in, and research for the reasons as to why or why not should the company make profits, and ultimately Rakesh Jhunjhunwala decides the future scales of the company. Advising the investors, Rakesh Jhunjhunwala holdings includes companies and hence the stock market may change due to several factors of which elements such as changing technologies, Marketing trends, Distribution of profits, resource management, branding, etc. are paramount. Further Rakesh Jhunjhunwala states that always be on the outlook of companies, that are small cap in the present scenario, but have a bright chance of turning into a large cap by the time you would want to sell off the stocks. Rakesh Jhunjhunwala says, looking at the ability of the company to scale, the decision to make a value investment shall be made. Exemplifying some IT and other mid cap stocks, Rakesh Jhunjhunwala explained that making profit out of value investment hugely depends on analysis that an investor makes, and the time he chooses to sell out his holdings. Adding to his theory of examining profits and future prospects, Rakesh Jhunjhunwala holdings disclosed how after four-five years of investing and profit booking in a company, he would examine and reform his strategies, owing to the dynamic nature of the market and its changing trends. Rakesh Jhunjhunwala also told that, one should not bother about the quarterly financial reports and should avoid forming a rigid mindset. Rakesh Jhunjhunwala believes that an investor should be very open minded and should be less moved with the short term sentiments of the market. The market is dynamic, and so is rakesh Jhunjhunwala and his strategies for value investment. Rakesh Jhunjhunwala's Stock Investment Principles Rakesh Jhunjhunwala is arguably the most successful Indian stock market investor and trader of our times. Investors are generally interested to know about Rakesh Jhunjhunwala?s portfolio holdings, Stock Picks, Stock Selection Techniques etc with a view to invest in the same and profit from his legendary skills. How does Rakesh Jhunjhunwala decide Stock Picks and Stock Holding? What are Rakesh Jhunjhunwala?s portfolio holdings? What are Rakesh Jhunjhunwala?s investment techniques? How does Rakesh Jhunjhunwala find his multi-baggers? When we listen to Rakesh Jhunjhunwala's numerous investment seminars on TV we can figure out a few things related to Rakesh Jhunjhunwala?s thinking process and stock selection techniques. Some of things Rakesh Jhunjhunwala holdings emphasize on the stocks having power of compounding and asset allocation process; an investor's ability to stay for long enough time in fundamentally strong companies with excellent growth potential; and investor's ability to identify such companies and stay invested in them with conviction. Rakesh Jhunjhunwala says that one much keep aside enough money out of stock market, may be in debt instruments, for meeting expenses such as education, health care, marriage and other expenses. Only the money that is left after such allocation may be invested in stocks based on an investor's risk appetite, age and earning potential. Rakesh Jhunjhunwala says that only then can an investor can stay long with their companies and profit from compounding growth. Rakesh Jhunjhunwala says you must have confidence and conviction in what you are doing. You must be comfortable with the idea that your investments are subject to the ups and downs of the market and you must not get sleepless night worrying about your investments. That means you should know about the companies you are choosing and have conviction about their long term growth potential. Rakesh Jhunjhunwala?s also emphasizes the fact that on must not be too rigid o get emotional about the companies they invest in. You must be open to accepting that you have made mistakes. Keep an open mind!

Rakesh Jhunjhunwala's tips on how to find multibagger stocks

Rakesh Jhunjhunwala is the Mother Theresa of the investment world because not only is this Living Legend eager to share his investment techniques with us but also happy to let us in on the most well guarded investment secret on how Rakesh Jhunjhunwala made his billions . But,Rakesh Jhunjhunwala, the wise sage that he is, is a man of few words. Rakesh Jhunjhunwala is reticent. When Rakesh Jhunjhunwala speaks, it is because he has something to say and not because he has to say something! So we scoured through hundreds of transcripts to decode Rakesh Jhunjhunwala?s investment secrets. Now, we are proud to present our own version of Rakesh Jhunjhunwala?s tips on how to find multibaggers. Rakesh Jhunjhunwala?s Tip No. 1: Don't Look For Multi-baggers Rakesh Jhunjhunwala?s first investment mantra on how to find multibaggers is surprisingly different from what you would expect. Rakesh Jhunjhunwala says: "Don't look for multibaggers. Don't seek them at all. Let the multibaggers come to you!" What is Rakesh Jhunjhunwala saying? What Rakesh Jhunjhunwala is saying is: Don't go out into the investment world saying "I only want to invest in potential multibaggers". Instead, Rakesh Jhunjhunwala, the Investment Guru, says "Go back to the old-fashioned way of making investments designed by investment maestros Benjamin Graham, Peter Lynch and Warren Buffett". "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". Sounds simple but Rakesh Jhunjhunwala is not content with giving abstract or theoretical advice because Rakesh Jhunjhunwala already knows that his disciples are a bunch of doubting Thomas and even his words of undeniable gospel will be met with stoic skepticism. So, Rakesh Jhunjhunwala gives examples of what he means. Rakesh Jhunjhunwala gives the example of BEML which several years ago was quoting at a pittance because it was regarded as a slothful government enterprise. No investor in his right mind wanted the shares of BEML at that time. But while other investors saw a sluggish government corporation, Rakesh Jhunjhunwala saw efficient management, a great product line-up and effeicient cash-flows. The result: Rakesh Jhunjhunwala got a bountiful; he got his multibagger. One example is not enough. So, Rakesh Jhunjhunwala gives another example ? that of Bharat Electronics ? which also was regarded as a Babu-wala company by other investors who couldn't see what Rakesh Jhunjhunwala?s discerning eye could. Another humble company turned into a multibagger by sheer passage of time! Now you are convinced. But Rakesh Jhunjhunwala does not rest. He goes for the jugular. Now, Rakesh Jhunjhunwala gives a counter example. What would an investor "looking" for a multibagger have bought in the heady days of 2000? The naive investor would have looked around and seen "spectacular" companies like Himachal Futuristic, Global Tele, Pentasoft soaring on the stock exchange, making new highs every day. So, the foolish investor would have tanked up on these shares thinking that these shares were his best bet to net a multi-bagger. The result: You don't need the great Rakesh Jhunjhunwala to spell that out for you. So, now you know why Rakesh Jhunjhunwala says: "Don't look for multibaggers!" Yes, the point sinks in and you have understood but then you rub your eyes incredulously and ask "But what do I look for in a share?" Rakesh Jhunjhunwala is not regarded as the greatest investor in India for nothing. He has a well-considered answer for that as well. And if you think about it, Rakesh Jhunjhuwala's answer is made up of pure common sense. Rakesh Jhunjhunwala?s Tip No. 2: Don't Look for Profits; Look For Sources Of Profits Rakesh Jhunjhunwala cautions that most investors obsess about the current sales and profits. They look at each quarter and focus obsessively on short-term profits. "That's missing the wood for the trees" says Rakesh Jhunjhunwala. Instead Rakesh Jhunjhunwala says "Look at the sources of Profits. What are the reasons that will give rise to Profits in the medium and long-term term". Rakesh Jhunjhunwala drives home the point. "Look at the factors and circumstances that will create an opportunity for business in the sector". Rakesh Jhunjhunwala gives the classic example of Infosys and Wipro. While the average Joe would have sat with his calculator analyzing Infosys's & Wipro's PE, ROE and nonsense like that, an astute investor in the 1990s would have realized that an internet revolution was coming in the next couple of years. He would have also realized that the off-shore business segment was booming and he would have tanked up on those shares. Rakesh Jhunjhunwala gives another spectacular example: That of Praj Industries, a company engaged in manufacture of bio-ethanol fuel. When Praj Industries started out, nobody realized the massive demand that would arise for alternate fuels like ethanol. An investor would could have foreseen that would have had his multibagger. Rakesh Jhunjhunwala?s Tip No. 3: Forget ?Large Cap, Small Cap' Nonsense ? Look For Scalability Of Operations: Rakesh Jhunjhunwala makes two very important points. First, the investing maestro expresses his contempt for the obsession that many analysts and investors have for the debate on whether large cap, mid cap or small cap stocks are better. "Forget all that and Look for Value" he thunders. "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", says Rakesh Jhunjhunwala, the one with infinite wisdom. But Rakesh Jhunjhunwala makes his preference quite clear. He says that given a choice and all things remaining equal, a mid-cap or a small-cap is a preferred bet because the valuations will be low and they can scale it up quite quickly. Rakesh Jhunjhunwala?s Tip No. 4: Give it Time, Be Patient: Rakesh Jhunjhunwala reiterates what the maha investment gurus like Benjamin Graham and Warren Buffett have been advising over the past several decades. Warren Buffett was plain in his advice "Our favourite holding period is Forever". Rakesh Jhunjhunwala gives the same advice: "Give your investments time to mature. Be Patient for the World to discover your gems". Rakesh Jhunjhunwala cites the examples of Crisil, Titan and Pantaloon Retail which he has held on for several years now and has absolutely no intention of divesting them any time soon. When Rakesh Jhunjhunwala bought Lupin it was just another mid-cap pharma company starting out into the world of generic drugs. What Rakesh Jhunjhunwala saw was a good efficient management which knew its job, a debt-free status, a good product line up and a growing market. That's all. Rakesh Jhunjhunwala bought and played the waiting game. When the market matured, Rakesh Jhunjhunwala raked in his billions. Rakesh Jhunjhunwala also fondly talks about his investment in Karur Vysya Bank which he has held onto even after about 20 years since he bought them. He says that his paltry investment of Rs 2,000 is worth several crores today thanks to the patience and conviction that he showed. Rakesh Jhunjhunwala is never tired of emphasizing that first you must always remember that you are buying a business and not just a little thing that bounces 2% around every now and then. When you buy that business, it must be of a very high quality, one that is capable of growing over time. Having done your hard work, you must wait for the market to do its work and reward you, says Rakesh Jhunjhunwala. Rakesh Jhunjhunwala?s Tip No. 5: Don't get carried away by short-term aberrations: Rakesh Jhunjhunwala cannot stop criticizing investors who are obsessed with short-term trends. Rakesh Jhunjhunwala emphasizes that he does not worry about quarterly results. If the results are bad in one quarter, he does not get perturbed. What Rakesh Jhunjhunwala is looking for is: Is there a trend? Are the quarterly results showing a trend and suggesting something or are they a mere aberration? Rakesh Jhunjhunwala also cautions that one should not get carried away by short-term trends. He cites the oftrepeated example of 1999 when investors bought truck loads of Himachal Futuristic, Global Tele, Pentasoft while he used to buy Shipping Corporation and Bharat Electronics because he saw long-term value in them. The Oracle of Mumbai says "Never get carried away by aberrations, recognize and respect them but do remember that the market corrects its aberration though it takes time." Rakesh Jhunjhunwala then adds that if the market behaves irrational and punishes a stock for short-term aberration, that's the time for you to jump in. Rakesh Jhunjhunwala cites the classic example of Titan Watches to buttress his theory. Rakesh Jhunjhunwala says that Titan suffered in a moment of crisis when it went into Europe and lost a lot of money. Rakesh Jhunjhunwala says he wasn't perturbed because he knew that what is most important for Titan is India's prosperity. Rakesh Jhunjhunwala envisaged the future and knew sub-consciously that Indians were going to buy far many watches and that the underlying business should be great. So, says Rakesh Jhunjhunwala, in a moment of crisis you can get great valuations and if you can envisage the future where the product could have great demand and great growth, you should use the opportunity to buy. Rakesh Jhunjhunwala?s Tip No. 6: Invest in a business that you can understand: If you look at it hard enough, you will realize that Rakesh Jhunjhunwala?s reluctance to buy Himachal Futuristic, Global Tele and Pentasoft even in their heydays and Rakesh Jhunjhunwala's preference to stick to Shipping Corporation, Bharat Electronics and the other tried and tested names reveals another great investment tip from the Prince of Dalal Street: Buy what you know. Do you understand the business enough to be able to know what will happen 10 or 20 years from today. With Shipping Corporation, you can because shipping of goods will continue to happen for our foreseeable future. But you can't tell that with technology companies which may have a great product today but which may become obsolete in 5 years. Rakesh Jhunjhunwala?s Tip No. 7: Don't worry about the macro stuff like fiscal deficit, inflation etc which are unknowable. Focus on what is knowable: Rakesh Jhunjhunwala, India's greatest investor, for us folk who keep obsessing about currency fluctuation rates, inflation, fiscal deficit, political turmoil says: "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". Rakesh Jhunjhunwala?s Tip No. 8 : Don't Try To Time The Market: Rakesh Jhunjhunwala endorses the validity of investment advice that has been propounded time and again by the wizards of investment time and again. Never try to time the market because you

can never find the bottom of the market. Instead if you are getting the stock cheap in terms of its intrinsic value and future prospects, buy it.Rakesh Jhunjhunwala echoes the words of the Oracle of Omaha when he says that you must get right is the business. If you get that right, everything else falls into place. Rakesh Jhunjhunwala?s Tip No. 9 : If it's cheap, buy it- Don't pass up something cheap today in the hope that it will get cheaper tomorrow: Rakesh Jhunjhunwala says: If you see the opportunity today, GRAB IT! Many wonderful opportunities are lost to procrastination and then you rue your missed opportunities. Rakesh Jhunjhunwala says that it is not only important to identify the opportunity but then to be decisive and to act on it. Rakesh Jhunjhunwala cautions against getting stuck in a trap where you are perpetually seeking extra information to validate your idea. Rakesh Jhunjhunwala?s Tip No. 10 : Don't buy stocks that have a fixed return: Rakesh Jhunjhunwala?s next tip seems to be a no-brainer but it is surprising how many investors overlook it. What is the point of buying shares in a company such as an electricity company where the return on investment cannot by law exceed a certain amount, asks Rakesh Jhunjhunwala. But, Rakesh Jhunjhunwala, emphasizes that this logic does not mean that electricity and utility companies should not form part of your portfolio because they offer an excellent defense mechanism to the vagaries of the stock market with the undemanding demand for their product and their predictable cash flows. Rakesh Jhunjhunwala?s Tip No. 11: Ride your winners!! The one question on everybody's mind is "When do I sell my multibagger?" Rakesh Jhunjhunwala answers with aplomb "Never". One must be careful to understand what Rakesh Jhunjhunwala is saying here. What the Greatest Investor in India is saying is: "Don't sell for the sake of selling because you can never say that the 10-bagger today will not become a 20-bagger tomorrow". But, Rakesh Jhunjhunwala hastens to clarify that this does not mean that one will never sell a multibagger. Rakesh Jhunjhunwala gives two situations when even he may sell his beloved multibagger. The first is when he is short of funds and he needs capital to invest in a stock that will give even better returns than what the existing one will give. And second, when the stock market has become so irrational that the perception of earnings and the P/E is unsustainable. Rakesh Jhunjhunwala gives the example of what happend in 2000 when euphoric investors laid bets that Infosys' earnings would double every year for the next 10 years. Infosys' P/E at the then current earnings was 100-150 times. So, says Rakesh Jhunjhunwala, when the expectation of earnings peaks and the P/E is unsustainable, that is the time to sell. Rakesh Jhunjhunwala?s Tip No. 12: Concentrate, concentrate & concentrate!! There is a perpetual battle amongst investors on whether a diversified portfolio approach is better or a concentrated portfolio is better. Rakesh Jhunjhunwala is an unabashed proponent of the concentrated portfolio theory. But Rakesh Jhunjhunwala?s theory must be carefully understood before being implemented in practice as it can otherwise lead to disaster. Rakesh Jhunjhunwala emphasizes that one must venture into a concentrated portfolio only after one is sure that he has identified a share that will deliver superior returns to all the other chosen shares. The conviction must be extremely strong, says Rakesh Jhunjhunwala. Rakesh Jhunjhunwala is not one to take risks lightly so must also be wary of the risks of a concentrated portfolio. In the recent past, we have seen so many excellent companies lose large portions of their market cap almost overnight. So, while there are benefits to a concentrated portfolio, one must not be oblivious to its risks, cautions Rakesh Jhunjhunwala.

Stock Holding
Current Holdings
All figures are in Rs
Company Qty L/S Buy Price Buy Date LTP Close Date Cost Mkt Value Gain(%)

Res

Agro Tech Foods Ltd Hindustan Oil Explor Titan Industries Ltd Geometric Ltd. Aptech Ltd

1100700 Long 1660143 Long 812500 Long

251.00 250.00 355.00 65.00 72.00

09-Mar-10 457.60 04-Jun-12 09-Mar-10 98.35 04-Jun-12

276,275,700 415,035,750 288,437,500 216,775,000 226,951,200

503,680,320 163,275,064 180,009,375 221,277,250 220,647,000

82.31% -60.66% -37.59% 2.08% -2.78%

29-Oct-10 221.55 04-Jun-12 09-Mar-10 28-Oct-08 66.35 04-Jun-12 70.00 04-Jun-12

3335000 Long 3152100 Long

Company

Qty

L/S

Buy Price

Buy Date

LTP

Close Date

Cost

Mkt Value

Gain(%)

Res

Titan Industries Ltd Geometric Ltd. Subex Ltd. Titan Industries Ltd Development Credit B

545000

Long

288.00 65.00 62.00 220.00 55.40

18-Aug-11 221.55 04-Jun-12 09-Mar-10 13-Apr-11 66.35 04-Jun-12 22.10 04-Jun-12

156,960,000 250,900,000 77,500,000 89,540,000 66,480,000

120,744,750 256,111,000 27,625,000 90,170,850 46,080,000

-23.07% 2.08% -64.35% 0.70% -30.69%

3860000 Long 1250000 Long 407000 Long

31-May-10 221.55 04-Jun-12 13-Apr-11 38.40 04-Jun-12

1200000 Long

10

Prior Holdings
All figures are in Rs
Company Qty L/S Buy Price Buy Date Sell Price Sell Date Cost Gain Amt

Rallis India Ltd Kajaria Ceramics Ltd Agro Tech Foods Ltd Karur Vysya Bank Ltd Kajaria Ceramics Ltd Titan Industries Ltd J B Chemicals & Phar Kajaria Ceramics Ltd Lupin Ltd Geometric Ltd.

2287130 750000 53000 18830 1250000 1157500 1251650 502642 2183581 525000

Long Long Long Long Long Long Long Long Long Long

69.00 59.00 251.00 415.00 59.00 180.00 68.00 59.00 390.00 65.00

07-Aug-09 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10 09-Mar-10

105.00 86.00 364.00 529.00 75.00 218.00 82.00 70.00 456.00 69.00

07-May-10 02-May-11 20-Jun-11 15-Nov-10 25-Nov-10 11-Aug-11 13-May-10 02-Feb-11 14-Feb-11 18-Feb-11

157,811,970 44,250,000 13,303,000 7,814,450 73,750,000 208,350,000 85,112,200 29,655,878 851,596,590 34,125,000

82,336,680 20,250,000 5,989,000 2,146,620 20,000,000 43,985,000 17,523,100 5,529,062 144,116,346 2,100,000

Y e a r

2012

Auto Ancillaries Banks

0.71% 4.54%

Auto Ancillaries Banks

1.22% -0.41%

Chemicals 0.01% Construction 8.20% Consumer Durables 48.69% Edible Fat 2.79% Engineering 5.59% Food Processing 0.09% Hospitality 0.59% Information Technology 1.58% Packaging 3.01% Paper 0.14% Pharmaceuticals and health care 4.41% Plastics 2.73% Retail 0.29% Service 16.34% Sugar 0.11% Textiles 0.17%

Chemicals 0.00% Construction -12.99% Consumer Durables 52.79% Edible Fat 7.09% Engineering -1.61% Food Processing 0.04% Hospitality -0.70% Information Technology -0.36% Packaging -4.49% Paper -0.23% Pharmaceuticals and health care 1.76% Plastics 2.64% Retail -0.27% Service 13.18% Sugar -0.16% Textiles -0.05%

Y e a r

2012

Auto Ancillaries 0.61% Banks 3.77% Chemicals 0.01% Construction 4.79% Consumer Durables 50.53% Edible Fat 3.14% Engineering 5.64% Food Processing 0.08% Hospitality 0.37% Information Technology 1.38% Packaging 1.57% Paper 0.05% Pharmaceuticals and health care 6.39% Plastics 2.37% Retail 0.18%

Auto Ancillaries 1.41% Banks 2.92% Chemicals 0.01% Construction 9.91% Consumer Durables 59.78% Edible Fat 1.96% Engineering 4.73% Food Processing 0.09% Hospitality 0.40% Information Technology 2.86% Packaging 2.30% Paper 0.00% Pharmaceuticals and health care 1.99% Plastics 5.73% Retail 0.30%

Service Sugar Textiles

18.92% 0.07% 0.13%

Service Sugar Textiles

5.26% 0.12% 0.23%