Rakesh Jhunjhunwala is often called the Indian Warren Buffett.
It is said that he compouned at 65% (!) per year.
Here are the 6 main principles on which he built his empire:
It is said that he compouned at 65% (!) per year.
Here are the 6 main principles on which he built his empire:
1️⃣ A balance sheet is like a bikini
A balance sheet is like a bikini: it hides what is vital.
I learnt to read a balance sheet and then I got fascinated by stocks.
A balance sheet is like a bikini: it hides what is vital.
I learnt to read a balance sheet and then I got fascinated by stocks.
2️⃣ Stay rational
You'll make bad investment decisions from time to time.
Always stay focused and never make emotional buy or sell decisions.
You'll make bad investment decisions from time to time.
Always stay focused and never make emotional buy or sell decisions.
3️⃣ Be passionate
Passionate investors always make money in the stock market.
You will never fail in any work when you're passionate.
Passionate investors always make money in the stock market.
You will never fail in any work when you're passionate.
4️⃣ Buy companies with a moat
Invest in companies which have strong management and a competitive advantage.
A moat is essential for quality investors.
Invest in companies which have strong management and a competitive advantage.
A moat is essential for quality investors.
5️⃣ Respect the market
In the end, the market is always right.
Stocks always follow the evolution of the intrinsic value over time.
In the end, the market is always right.
Stocks always follow the evolution of the intrinsic value over time.
6️⃣ Let your winners run
You only need a few very big winners to make your investment career worthwhile.
Cut your losers and provide your winners with room to continue growing.
You only need a few very big winners to make your investment career worthwhile.
Cut your losers and provide your winners with room to continue growing.
That's it for today.
If you liked this, you'll love the PDF which compiles all writings of Rakesh Jhunjhunwala.
Grab it for free here: eepurl.com
If you liked this, you'll love the PDF which compiles all writings of Rakesh Jhunjhunwala.
Grab it for free here: eepurl.com
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