As per Forbes, Rakesh Jhunjhunwala’s net worth was nearly $6 billion. He was wealthier than 99.99 per cent of people in the world.
Do you know that he started his career with just Rs 60?
About four decades ago, when he was a chartered accountant trainee, he was paid an allowance of Rs 60. After deductions, he would get only Rs 45. Still, he saved some money so that he could spend the weekends with his friends at Chicken Centre, a popular eatery. In one of his interviews, Jhunjhunwala had said that even a bottle of whiskey that costs Rs 40,000 could not give him that pleasure.
He wanted to be a journalist or pilot. But, his attention turned to markets that made him a multi-billionaire. He grew up to be a man with the ‘Midas Touch’ because whatever stock he touched, turned out profitable. He had stakes in CRISIL, Titan, and Karur Vysya Bank for years. Instead of long-term investing, he chose shorting the market.
Dubbed ‘India’s Warren Buffet’, Jhunjhunwala failed to make money during the tech boom in the late 1990s while his friends made a lot of money. But, he survived the crash that followed. Warren Buffet had a similar experience.
Here are a few words of wisdom from the man who believed in India’s potential:
- Do not time the market as stock markets are always right.
- There will always be ups and downs. When there is darkness, remember dawn is on its way
- It is impossible to predict the future beyond a point
- Always go for reasonable valuations
- Always respect the price. Keep in mind that you can go wrong
- Make mistakes, but never repeat the mistakes
- What matters in stock markets is how much money you made when you were right and how much you lost when you were wrong
- Only invest what you can afford to lose in the short term
- Do not borrow to invest
- Make sure that you are a trader by heart.
