Rakesh Jhunjhunwala is undoubtedly one of the most successful investors in the Indian stock markets.
Let us today look at the top 5 investment principles that Rakesh Jhunjhunwala follows so that we can incorporate them onto our style of investing.
Rakesh Jhunjhunwala adheres to the principles of value investing, which entails purchasing a stock at a price (valuation) that is lower than its fundamentals.
It is critical to always think positively when investing in the markets. When we think positively, we are better able to make informed and logical decisions and are less likely to become pessimistic or jittery when markets become volatile.
Rakesh Jhunjhunwala is a firm believer in long-term investing. He also believes that we should always "invest in businesses rather than companies".
We should consistently invest our money in the stock market and be patient with our investments. If we invest for the long term, learn from our mistakes, and adjust our investing style accordingly, we will undoubtedly profit from the market, sooner or later.
Having a firm hold over our emotions is crucial for generating money in the market. Every investment we make should be calculated and reasonable, and we shouldn't become anxious anytime the market takes a negative turn.
Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.
– Rakesh Jhunjhunwala