Rakesh Jhunjhunwala’s Stock Investment Principles

Rakesh Jhunjhunwala is arguably the most successful Indian stock market investor and trader of our times. Investors are generally interested to know about his portfolio holdings, Stock Picks, Stock Selection Techniques etc with a view to invest in the same and profit from his legendary skills.

What is Rakesh Jhunjhunwala's investment technique?
How does he decide Stock Picks and Stock Holding?
What are his portfolio holdings?
How does he find his multi-baggers?

When we listen to Rakesh Jhunjhunwala's numerous investment seminars on TV we can figure out a few things related to his thinking process and stock selection techniques.

Some of the things his holdings emphasise on is that the stocks having power of compounding and asset allocation process; an investor's ability to stay for long enough time in fundamentally strong companies with excellent growth potential; and investor's ability to identify such companies and stay invested in them with conviction.

He says that one much keep aside enough money out of stock market, may be in debt instruments, for meeting expenses such as education, health care, marriage and other expenses. Only the money that is left after such allocation may be invested in stocks based on an investor's risk appetite, age and earning potential. He says that only then can an investor can stay long with their companies and profit from compounding growth.

He says you must have confidence and conviction in what you are doing. You must be comfortable with the idea that your investments are subject to the ups and downs of the market and you must not get sleepless night worrying about your investments. That means you should know about the companies you are choosing and have conviction about their long term growth potential.

Rakesh Jhunjhunwala also emphasises the fact that on must not be too rigid o get emotional about the companies they invest in. You must be open to accepting that you have made mistakes. Keep an open mind!