Rakesh Jhunjhunwala-The Rare(ing) Bull

April 27, 2011 9 Comments

Rakesh Radheysham Jhunjhunwala is a famous Indian stock investor.He lives in Malabar Hills with his wife Rekha ,daughter Nishtha and twin sons Aryaman and Aryaveer and works from his office at Nariman Point in South Mumbai. He regularly appears on various business channels on television to share his ideas and opinions on the Indian markets. He is well-known in investing circles as ‘Rocky’ and among his close associates as ‘Bhaiyya’.He is considered to be India’s Warren Buffett. In 2010, Forbes rated him India’s 51st and the world’s 1062nd richest man with a net worth of $1.0 billion.He is the first dollar billionaire from India to have made his fortune primarily from the stock markets.

He considers Mr Radhakrishnan Damani as his guru (mentor) and best friend.He counts Kamal Babu, Ramesh Damani and Kamal Kabra as friends.He manages his own portfolio as a partner in his asset management firm, Rare Enterprises (Ra-Rakesh Jhunjhunwala, Re- Rekha Jhunjhunwala).“The sheer passion for markets and the ability to do what I enjoy is what inspires me,” says Jhunjhunwala. He has been asked to manage other people’s money, but prefers the freedom of not having to answer to anybody, and has thus turned all offers down.Rakesh does not try to beat the market as opposed to investment managers who have to answer to a lot of people, and hence look at indicators like how much alpha — or returns in excess of the general market — they are generating. “The only person that I have to answer to is my wife, and she just wants to know what the absolute returns are, not whether I am beating the market”. He expects the market to do very well as he believes that India is at the beginning of an unprecedented multi-decade bull run.Obviously he believes in putting his money where his mouth is as he owns only Indian equities.There are 7-8 stocks that make up 80% of his portfolio, and his holding period stretches from 3 years to 10. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with absolute returns, Agastya Bangaluru, alpha, Aryaman Jhunjhunwala, Aryaveer Jhunjhunwala, bear, BEML, Bhaiyya, Bharat Electronics, billionaire, BSE Sensex, bull, bull run, business channels, business model, chameleon, chartered accountant, competitive ability, CRISIL, earnings expectations, enterprise, entrepreneur, Forbes, Friends of Tribal Societies, George Soros, growth potential, Gwalior Rayon, Harshad Mehta, HOEL, holding period, Impact, income tax commissioner, investment manager, John Templeton, Kamak Kabra, Kamal Babu, Karur Vysya Bank, leverage portfolio, Malabar Hills, manage money, management quality, measured risks, mid-cap stocks, moneycontrol.com, Motilal Oswal Financial Services, multi-baggers, Nariman Point, net worth, Nishta Jhunjhunwala, Parag Parekh, Peter Lynch, Philanthropy, portfolio, postaday2011, Praj Industries, price targets, profitability, projection, PSU, Raamdeo Agarwal, Radhakrishnan Dhamani, Rakesh Jhunjhunwala, Ramesh Dhamani, RandomBlog2011, Rara Enterprises, Rareing Bull, Rekha Jhunjhunwala, risks, Rocky, scalability, sell stocks, Sesa Goa, share investment, shares, South Mumbai, stock market, stock traders, Sydenham College, Tata Power, Tata Tea, Titan Industries, trading income, valuations, Warren Buffett

Back From Hospital

April 20, 2011 3 Comments

I’m back from hospital.I’m still awaiting the reports.Hope it’s not the C – word.

I’m still a bit groggy with the pain-killers I need to take and sleeping all the time.I’ll be back to posting ASAP if everything goes fine.

For the reader asking for a follow-up article on “A Critique of The Giving Pledge’ please check the philanthropy section for the more recent articles.I think you’ll find what you’re looking for there.

Filed under Tidbits Tagged with cancer, hospital, pain-killers, Philanthropy, postaday2011, RandomBlog2011, reports, sleeping, The Giving Pledge

Buffett Family Philanthropy

March 30, 2011 6 Comments

Here is an article I came across by chance today.I think it’s worth sharing.

Daddy Givebucks: Lessons Learned When Warren Buffett Hands You $1 Billion

By: Jeff Bailey September 1, 2009

Three years ago, Warren Buffett gave each of his kids $1 billion to give away — suddenly thrusting them into the philanthropic elite. Here’s what they learned.

For all the talk of how Warren Buffett is a normal, aw-shucks Midwestern guy, we know he is not just like us. We don’t play bridge with Bill Gates. We may get calls asking for capital infusions, but they’re from our kids, not from GE and Goldman. And these days, we certainly don’t get 10% dividends on our stocks.

But ask Buffett about his kids — Susie, 56, an Omaha knitting-shop owner; Howie, 54, an Illinois farmer; and Peter, 51, a New York-based new-age musician — and he turns into your typical, gushing dad. “All three are smart. They have good judgment,” he says. “They’re just very decent human beings.”

So decent, he thinks, that three years ago, when he pledged $30 billion in Class B Berkshire Hathaway stock to the Bill & Melinda Gates Foundation, he also promised each of his children $1 billion in shares for their charitable foundations. (All four foundations are receiving their stock grants in annual installments, with the remainder to be paid out upon his death.) Read more of this post

Filed under Philanthropy Tagged with Africa, Bill and Melinda Gates Foundation, Bill Gates, Crop research, Educare, George Kaiser Family Foundation, Ghana, Girl Effect, Global Philanthropy Group, Howard G. Buffett Foundation, Howie Buffett, Jennifer Buffett, John Deere, Mary Robinson, Nike Foundation, NoVo Foundation, Omaha Nebraska, Ounce of Prevention Fund, Peter Buffett, Philanthropy, postaday2011, RandomBlog2011, Sherwood Foundation, soil management, Susie Buffett, trevor neilson, W.K.Kellogg Foundation, Warren Buffett, water resources

Indian Philanthropy

March 29, 2011 1 Comment

Here are some major features of Indian Philanthropy as enumerated by eminent Indian businesspeople.They are perspectives that were articulated in response to the Gates-Buffett ‘the Giving Pledge’

1.”India has a very old culture of giving, since the time of Buddha. The concept of philanthropy is not new to us.”—-Rahul Bajaj, chairman, Bajaj Group.

2.”Philanthropy in the first world and in the third world are two different things. In the first world people donate to build a baseball stadium. In India, we have to decide for ourselves what we want out of philanthropy. It is not for the Americans to tell us.”

“shareholders have done more charity than Gates and Buffett put together. How? By allowing Cipla to export drugs for $100 million to Africa, which could have fetched $4 billion if they were exported to the US”—-Yusuf Hamied, chairman & managing director, Cipla Read more of this post

Filed under Philanthropy Tagged with Africa, Ajay Piramal, Anu Aga, arts, Arun Bharat Ram, Ashok Soota, Azim Premji, Bajaj Group, Bill Gates, Biocon, Buffett, CavinKare, charitable, Charity, cipla, CK Ranganathan, corporates, create wealth, Devi Shetty, dividend income, DLF, donate, earning, Education, export drugs, family ties, Gates-Buffett, Giving Pledge, giving to the community, GM Rao, GMR Group, GMR Varalakshmi Foundation, GVK Foundation, GVK Group, Harsh Goenka, HCL Infosystems, HCL Technologies, healthcare, Hemendra Kothari, Income, Indian, Indian businesspeople, individuals, Infosys, inheritance culture, inheritance tax, Kalpana Morparia, Kiran Mazumdar-Shaw, KP singh, Melinda Gates, MindTree, model, music, Narayana Hrudayalaya, Narayana Murthy, patriarch, Philanthropy, philanthropy evolution, postaday2011, publicity, Rahul Bajaj, Rana kapoor, RandomBlog2011, RPG Enterprises, Shiv Nadar, sports, SRF Limited, T.V. Mohandas Pai, Thermax India, Vineet Nayar, Warren Buffett, YES Bank, Yusuf Hamied

The Difference Between Business And Philanthropy

March 23, 2011 Leave a comment

” If you open a restaurant , and the public does not like your food , you will know . If you do the wrong things in philathropy , you don’t get a feedback from the market system . ”

——- Warren Buffett

I was very glad to hear these words today.The Buffett-Gates fortune is huge and I worry about how it will influence Public Policy in India.We have been too uncritical of Western ideas in the past ,adopted them with over-enthusiasm and have lived to regret it.Eg.Population Control,Green Revolution etc.I am glad that Buffett is aware of the implications of bad philanthropy.