Rakesh Jhunjhunwala’s Ten Commandments For Investing


wealthymatters1.Be an optimist! The necessary quality for investing success.

2.Expect a realistic return.Balance fear and greed.

3.Caveat emptor. Never forget this four letter word-R-I-S-K.

4.Invest on broad parameters and the larger picture.Make it an act of wisdom not intelligence.

5.Be disciplined.Have a game plan.

6.Be flexible.For investing is always in the realms of possibilities.

7. Contrarian investing.Not a rule,not ruled out.

8.Its important what you buy.Its more important at what price you buy.

9.Have conviction.Be patient.Your patience may be tested,but your conviction will be rewarded.

10.Make exit an independent decision.not driven by profit or loss.

 

Bet On Sure Things


wealthymatters

Both investments have an 8 percent average annual return. But Investment #1 has a wide range of returns, while Investment #2 has a stream of returns that more tightly hug the average annual return.

If each of the points on the charts represents a monthly return and both investments achieve the same end result, which investment should you choose?

The answer: Investment #2 — the one with the tighter distribution of returns since it gives you a higher probability of achieving a higher return. Read more of this post

Rakesh Jhunjhunwala’s Stock Picking Mantra


Rakeshji’s Take On The Year Ahead


wealthymatters.comHere is the transcript of Rakeshji’s interview on ET NOW of the day before yesterday for those of us who didn’t manage to catch it alive:

ET Now: What is your take on the current situation of the market?

Rakesh Jhunjhunwala: I am not surprised as December 20 of 2011 is still the 52-week low. There is hope in the market that the government will finally act.Interest rates worldwide are at extremely low levels. So money being cheap, there is some kind of confidence in Europe that at least no country is going to leave the Eurozone for the next six months.

We do not know beyond that. China is expected to grow better and the American economy is also showing some signs of recovery and here the markets are anticipating that now the interest rate cycle has turned. We are going to have lots of interest rate cuts next year. Despite all the pessimism, the market is performing extremely well with very good breadth and all technical indicators are extremely positive. It has always surprised me as it has risen in the last two, three months and it just refuses to correct. Read more of this post

Rakesh Jhunjhunwala On What Money Means To Him


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Here is what Rakesh Jhynjhunwala has to say on what money means to him:

If you ask me what money means, I’d say it’s used as a means of exchange, among other things.But J Paul Getty, one of the world’s richest men, said: If you can count it, you don’t have enough of it.

Money is the harsh reality of life. Some love for it, some die for it, some use it well, some waste it, most fight for it, but most others desire it. Read more of this post

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