Rakesh Jhunjhunwala’s key mantras for smart investing

Invest like Jhunjhunwala: Rakesh Jhunjhunwala, often hailed as India's Warren Buffett, transformed investment scene in India through his remarkable journey from trer to influential investor. With a portfolio valued at nearly Rs 32,000 crore, he popularised equity investment and inspired countless retail investors to embrace stock market. Here are some of his powerful investment mantras that continue to guide investors today.

Learning markets

“Markets can't be taught; y must be learnt. Curiosity fuels quest for knowledge. For instance, Titan delivered a 100% return over three years. If it continues to yield 15-18% in following years, why sell? Finding anor stock that offers similar returns is a challenge.”

Investing wisely

“Investing in mutual funds requires expertise. Unless you’re a full-time investor, seeking professional guidance is essential, and mutual funds provide that at a low cost.”

Setting realistic expectations

“Don’t expect returns exceeding 12-18% from equity markets. This isn’t a gambling venue. Through a systematic investment plan (SIP), I am confident of solid returns over 8, 10, or even 15 years. Avoid overestimating your abilities; SIPs should be integral to everyone’s savings strategy.”

Embracing mistakes

"Don’t fear making mistakes; just ensure y are manageable. Being overly cautious can paralyse decision-making. Take ownership of your choices, learn, and move forward."

Avoiding tips

“Tips are harmful. In this ever-changing market, it’s crucial to regularly assess your investments.”

Leveraging smartly

“Leverage isn’t inherently b, provided it's used wisely. I initially lacked capital and leveraged to grow my wealth. Use leverage judiciously, free from emotions. If situations turn unfavourable, act to minimise your exposure rar than hoping for a turnaround.”

Understanding tring

“Tring is fast-paced and should be approached short-term. Maintain a clear direction, understand your risks, and know when to cut losses. In investing, patience and conviction will pay off.”

Evaluating business models

“We often project two years of profits into next 20 without evaluating underlying business models. It’s crucial to consider wher a mid-cap company possesses a sustainable model and ongoing product demand.”

Respecting market dynamics

“Markets are inherently correct. Believing you’re always right can le you astray.”

Passion for investing

" stock market is akin to a love market. Passion is essential, along with a solid grasp of financial statements. Prioritise wisdom over mere intelligence. future is unpredictable; your investment decisions today will shape your outcomes tomorrow."