10 investment lessons from Rakesh Jhunjhunwala; turn yourself into an ace investor
Almost everyone wants to avail the benefits of booming markets, but considering Dalal Street is very volatile and sentiment driven, there comes a situation where faith gets shaken in equities. In such a situation, let stock market guru Rakesh Jhunjhunwala be your guide.
Stock markets in India are booming, with Nifty 50 and Sensex touching new highs of over 11,000-level and over 36,700-level. Equities have wide acceptance in India now and are also one of the most preferred investment options for every citizen right from young generation to retirees. Almost everyone wants to avail the benefit of booming markets, but considering Dalal Street is very volatile and sentiment driven, there comes a situation where faith gets shaken in equities. But one can always learn from experts who have been in this field for quite a time, and ace investor Rakesh Jhunjhunwala is one such man. There is no introduction required for Jhunjhunwala, as every stock market lover would be familiar with his name. But his rich experience should serve as a tool of empowerment for all investors.
Jhunjhunwala 58, is said to be one of the most successful equity investors in India, as he turned his investment of just $100, when he began trading, into a massive $2.9 billion. He belongs to a middle class family and began his first trading on BSE in 1985. Since then he has selected trading as a full-time profession. With such a long experience, for Jhunjhunwala making money from stock exchanges is seemingly, like a child's play. However, it should also be known, that he has mastered the word patience in stock market. That is a virtue that everyone in stock markets needs plenty of.
Here are 20 investment mantras of Jhunjhunwala that can help you to script your own success story on stock markets.
1 - Firstly remember if you call yourself an investor, then you must fall under the opportunistic and optimist categories.
2 - Always respect the market with an open mind. How? Get a clear idea of these three statements - Know what is at stake, Know when to take a loss, Be Responsible.
3 - investing in equities is a little like a gamble where, one should always remember, the investor is not pulling the strings - the stocks are driven by many things, including even sentiment. Therefore, Jhunjhunwala says, "Market is above individuals. The market is rational. An individual can never be smarter than the market.”
4 - Coming to investment options, Jhunjhunwala guides an investor to make sure the investment is made in a business not in a company.
5 - Investing in equities can give you hard times sometimes when it comes to your 'favorite' stocks especially when they do not perform as expected. Hence, to overcome this situation, Jhunjhunwala says 'emotional investment' is a sure way to make a loss in stock markets. Therefore, do not be driven by your own blindness over a stock, but make sure you have the right tools in your investment kitty.
6 - Learn to anticipate trends and benefit from them. Traders should master ability to go against human nature.
7 - Always remember growth comes out of chaos.
8 - Make sure your investment method ensures these two end results: Maximum profit and Minimum losses.
9- Have patience! Give your investments time to mature. Be Patient for the World to discover your gems.
10 - Try making investment when a stock is not popular.