Rakesh Jhunjhunwala, popularly known as the Warren Buffett of India, is no longer with us, but his reign in the stock market and his conservative investment strategy are the most talked about and followed among the masses. His investments were determining the movement of the market. The stocks of the companies he invested in kept going up. He gave many advices to people regarding investment. Millions of people who followed it have become rich today. Let’s know his success mantra. Those who invest in the stock market must know it.
Rakesh Jhunjhunwala first started investing a very small amount of money in the stock market. But he made his name in history with his investments worth thousands of crores. Rakesh Jhunjhunwala also started making his way into the list of billionaires.
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Strategies followed by Rakesh Jhunjhunwala
Rakesh Jhunjhunwala invested very carefully in the stock market. He did not waste his money but invested it efficiently in the stock market and through that he earned crores of wealth. On the other hand, Rakesh Jhunjhunwala has given many great tips to people to invest in the stock market, by following which even a common investor can become a millionaire. Check out Rakesh Jhunjhunwala’s investment tips.
Focus on long-term investing
Jhunjhunwala, referred to as the Warren Buffet of India, always advised long-term investing. If you want to stay in the stock market, invest for the long term, he says. He would say that investment should be given time to multiply rather than profiting in the short term. It is necessary to give some time for the money to multiply in the market. Jhunjhunwala used to tell investors that if they wait a little in the market, they will definitely get profit.
See also company debt
Rakesh Jhunjhunwala, before investing in any company, used to see how much debt the company has. He would give the same advice to others to check the creditworthiness of the company before investing money. If debt is low, companies will not face financial crisis. But if the debt is high, the company’s valuation is likely to fall at any time, he said.
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Focus on value, not price
Rakesh Jhunjhunwala will tell you not to invest based on the company’s stock price. A high-priced stock does not necessarily mean high returns. Before investing in a company, look at the company’s value and performance, not its share price, he said. Often people make the mistake of buying overpriced stocks. This should never be done.
Buy when others are selling and sell when others are buying
Rakesh Jhunjhunwala always believed that going against the wind would pay off. “Buy when most are selling, sell when others are buying.” Thus he was against the herd mentality of the people. He also advised market investors not to invest in the stock market by looking at others while investing. Investing in the stock market is not always safe, he said. Here the income will be high. So the risk is high. So, don’t invest by looking at others, get to know the company thoroughly and then invest. Investing money by looking at others should be avoided.
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