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Rakesh Jhunjhunwala, a renowned investor, passed suddenly on Sunday morning in Mumbai. Age-wise, he was 62. The Indian investor who is worth billions of dollars is admirably referred to as “Warren Buffett of India” since he provided a sterling example of how to make money on the stock market. Rakesh Jhunjhunwala, the son of an income tax official, began buying stocks while still in college. He started his financial adventure with ₹5,000, and as of today, he has passed away, leaving his family with $5.8 billion in fortune, according to Forbes statistics.
Despite Rakesh Jhunjhunwala’s passing, his investing philosophies will continue to inspire stock market participants to increase their fortune through the stock market.
Here we list out 10 investment principles that Rakesh Jhunjhunwala strictly followed throughout his life:
1] Build a fighting spirit:
When the bears have control of the market, one must exhibit a battling mentality. Rakesh Jhunjhunwala was seen advising investors to “Build a fighting attitude — take the bad with the good” on multiple sites. There is no reason to become alarmed by the short-term feelings when you are confident in a company’s business plan and its viability. stick to your investment and follow your conviction & Instincts.
2] Respect the market:
Rakesh Jhunjhunwala once said “respect the market. Be open-minded. Understand the stakes. Recognize when to admit defeat. Be accountable.” The stock market operates according to its own set of regulations. Only when these guidelines are followed may one earn money.
3] Be ready for losses:
Big Bull once said that “Be ready to lose. Losses are an inevitable aspect of life as a stock market investor.” You can’t always be right, so instead of acting like a stubborn investor while you’re trying to earn money in the markets, you should be ready to record losses as well.
4] Success requires obsession:
Big Bull believed that while passion may help someone thrive in any subject, it is especially important in the stock market. After experiencing losses, consumers become reluctant to invest in equities, according to Rakesh Jhunjhunwala. He advised investors to get ready for the market and to keep investing using the “buy, hold, and forget” maxim. He once counselled investors to keep a stock for as long as possible.
5] Home work before investment:
Rakesh Jhunjhunwala used to say quite often, “never invest at unreasonable valuations. Never run for companies which are in limelight.” He strictly followed this rule and used to advice new age investors to look at the valuations of the stock before making any investment decision instead of news making stocks.
6] Don’t make hasty decisions:
Big Bull believed the following: “Making judgments in a hurry often incurs big losses. Before investing money in any stock, take your time.” Therefore, an investor should take their time before making any investment decisions and should act on their convictions rather than the short-term mood of the market.
7] Market won’t change for you:
One should “view the world as it is, rather than what you would like it to be,” as Rakesh Jhunjhunwala once said. Therefore, rather than attempting to modify the stock market on your own, it is crucial to participate in it and sail with it if you want to become a successful stock market investor.
8] Be bold:
Rakesh Jhunjhunwala firmly felt that “you can start whatever you can do or dream of. Boldness possesses genius, strength, and magic. Thus, one should treat stock market shopping the same as other forms of retail. You should purchase stocks at the same low prices you attempt to purchase other items. So one should make it a practise to purchase when the market is correcting.
9] Never time the market:
No one can timing the market, yet stock markets are always correct. Big Bull believed that rather than timing the market on its own, one should join or quit the market based on market timing. As a result, you should record profits when your investing objective is met and be prepared to sell when the market is not performing as expected.
10] Go against the tide:
Always swim against the flow. Several investing gurus employ the renowned Rakesh Jhunjhunwala saying, “Buy when others are selling and sell when others are buying,” to advocate buying stocks at a bargain and selling them while the market is rising.