Wednesday 7 December 2022
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EconomyBusinessRakesh Jhunjhunwala left behind these 10 lessons for investors

Rakesh Jhunjhunwala left behind these 10 lessons for investors

Ace investor Rakesh Jhunjhunwala, referred to as India's Warren Buffett, died yesterday at the age of 62. He had been suffering from kidney disease and ischemic heart disease. The trader-turned-investor leaves behind a legacy of taking the cult of equity to the masses in his inimitable style and a portfolio worth nearly Rs 32,000 crore. But he behind lessons that should empower all investors. 

One of the most successful equity investors in India, Jhunjhunwala turned his investment of just $ 100, when he began trading, into a massive $ 2.9 billion. He belonged to a middle-class family who began trading on BSE in 1985. He selected trading as a full-time profession. He made money from stock exchanges as though it was child's play. Of course, he also mastered patience. That is a virtue that everyone in stock markets needs plenty of. 

Here are 10 investment mantras of Jhunjhunwala that can help you to script your own success story in 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 of these three statements. Know what is at stake, know when to take a loss and be responsible. 

3. Investing in equities is a kind of a gamble where one should always remember that the investor is not pulling the strings. The stocks are driven by many things, including even sentiment. Therefore, Jhunjhunwala said, "Market is above individuals. The market is rational. An individual can never be smarter than the market.”

4. Coming to investment options, Jhunjhunwala guided an investor to make sure the investment was made in a business and not in a company. 

5. Investing in equities can give you hard times sometimes when it comes to your 'favourite' stocks especially when they do not perform as expected. Hence, to overcome this situation, Jhunjhunwala said "emotional investment" was a sure way to make a loss in stock markets. Therefore, do not be driven by your own blindness over the 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 the 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 genius.

10. Try making an investment when a stock is not selling well.

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