look news india
Late Rakesh Jhunjhunwala, known as the ‘Big Bull’ and legendary investor of the Indian stock market, had created a huge net worth of more than Rs 50,000 crore on the basis of his unmatched wisdom and foresight. Investors kept a close watch on his every move and investment on Dalal Street. By making early stakes in companies like Titan, Tata Motors and Crisil, he rose from the ranks to become one of India’s most successful stock market investors. However, till the last days of his life, this uncrowned king of the stock market was always haunted by one deep regret and remorse that in his initial phase, he could not recognize the opportunities of some particular companies in time or he invested his precious money in some wrong stocks.
Often during media interviews and conversations among investors, Rakesh Jhunjhunwala had openly admitted that despite reaching the pinnacle of success in the stock market, there were some decisions which shook him to the core. He admitted that he sometimes deviated from the rules of value investing and placed huge bets in stocks which were fundamentally weak or were bought only on the basis of short-term enthusiasm and trends of the market. Some ill-timed sales during stock market fluctuations and long-term investments in some wrong companies taught him how costly the margin for error in the market could be.
Rakesh Jhunjhunwala often used to mention that he regretted not only the wrong investment but also not being able to buy shares of the best companies at the right time. When he entered the stock market in 1985 with just Rs 5,000, he lacked capital and had limited risk appetite. There were many big companies whose shares they could have bought at very low prices, but due to hesitation or lack of information they missed those golden opportunities. He believed that a wise investor is one who learns from his mistakes, but the pain of choosing some wrong companies remained with him throughout his career.
Sharing his early experiences, Big Bull once told how he caused losses to his portfolio several times due to short-term trading. In the initial days, he bought many such stocks in which the promoters’ credibility or business model was not strong, but in the greed of earning profits in a short time, he placed a big bet on them. Later, when there was a correction in the market, the prices of those shares crashed and they had to suffer huge losses. Such wrong investments taught him that one should invest money in the stock market not just on the basis of tips or emotions, but by deeply understanding the fundamentals of the company.
Rakesh Jhunjhunwala’s life and his entire career is remembered not only for his successful investments but also from his mistakes and regrets that young investors can learn a lot from. He always advised new investors to never invest in the stock market out of emotion or with the dream of becoming rich overnight. Accepting your mistakes and learning from them and moving forward is the real identity of a true trader and long-term investor. Even though he is no longer with us today, his financial strategies and experiences will always guide the generations to come.