10 Investment Principles Of Rakesh Jhunjhunwala That Made Him The Big Bull Of The Street

Rakesh Jhunjhunwala Not among us but his investment principles will continue to inspire stock market investors to fundraise from the stock markets. Here we list down 10 investment principles that Rakesh Jhunjhunwala strictly followed throughout his life:

1]Create a fighting spirit: When the market is in the grip of bears, the spirit of fighting has to be shown. Rakesh Jhunjhunwala was found suggesting to investors on various platforms that “one should create a fighting spirit – take the bad with the good.” When you are confident about a company’s business model and its sustainability, there is no need to panic. short term feelings. Go with your confidence and stick to your investment.

2]Respect the market: Rakesh Jhunjhunwala used to say “Respect the market. Keep an open mind. Know what to bet. Know when to take losses. Be responsible.” The stock market has its own rules and it operates on the basis of these rules. One can earn money only by following these rules.

3]Be prepared for pitfalls: Big Bull used to say “Be prepared for losses. Losses are part and parcel of stock market investor life.” You can’t be perfect all the time and therefore when you are in the markets to make money, you should be prepared to book losses instead of behaving like a stubborn investor.

4]Success Requires Passion: Big Bull believed that with passion one can be successful in any field but it has a bigger role to play in the stock market. Rakesh Jhunjhunwala used to say that people shy away from investing in stocks after booking losses. His advice to investors was to prepare yourself for the market and continue investing with the ‘buy, hold and forget’ rule. He advised investors to hold shares for as long as possible.

5]Homework Before Investing: Rakesh Jhunjhunwala often used to say, “Never invest at unfair valuations. Never run for companies that are in limelight.” He strictly adhered to this rule and advised the new age investors to look at the valuation of the stock before making any investment decision rather than the stocks making news.

6]Do not take hasty decisions: Big Bull was of the opinion that “hasty decisions always result in huge losses. Take your time before investing in any stock.” Hence, an investor should take time before taking any investment decision and then one needs to follow with their conviction rather than short term market sentiments.

7]The market will not change for you: Rakesh Jhunjhunwala used to say that “the world should be seen as it is, not as you want it to be”. Therefore, to become a successful stock market investor, it is important to be a part of the stock market action and sail with it rather than try to change it on your own.

8]Be bold: Rakesh Jhunjhunwala firmly believed that “whatever you can do or dream of, start it. There is talent, power and magic in courage.” Therefore, buying in the stock market should be like any other purchase. As you try to buy goods at the cheapest possible rates, you should do the same while buying stocks. Hence , one should have the habit of shopping during the correction.

9]Never Time the Market: Stock markets are always right and no one can time the market. Big Bull was of the opinion that instead of timing the market itself, one should enter or exit on the basis of market timing. Therefore, you should book a profit when your investment target is achieved and be prepared to exit your position when the market is not behaving as you intended.

10]Go Against the Tide: “Always go against the tide. Buy when others are selling and sell when others are buying,” this famous quote by Rakesh Jhunjhunwala is being used by various investment advisors to buy stocks at a discounted price when the market rises. Recommend buying and selling.

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