About Rakesh Jhunjhunwalla

#1
Dear all,

I was just wondering if anyone has any information on Rakesh Jhunjhunwalla's methodology. I was reading the other day he started with just 5000 rupees in 1985 and today its 5000 crores. That in itself is mindboggling but the kicker is yet to follow ...........which is ......... he did it trading only equities No futures or options so no leverage.

I was met someone who claimed he know RK and told me RK's portfolio was maintained by ENAM at that time and its because of them he made such impressive gains in his initial yrs.

But personally I find that hard to believe as RK's net worth is more than ENAM's so if ENAM could do it for RK why didn't they do it for themselves.

From reading interviews in magazine and watching his commentary/guest experiences on TV this is what i have gathered so far


1)He tries to identify conditions which will be favorable in the future and then finds which businesses will profit form this

2)He builds huge long term positions, in his latest interview he mentioned some stocks he's been holding right form the late 90's till today, which means he held them thorough the crash of 2000 and 2008.

3)He gives credit to two people who were mentors to him. One is a certain Mr. Radhakrishna Damani (not that Ramesh Damani joker who comes on TV) and the other is Mr. Chandrakant Sampat. Unfortunately I don't know much about either of them. I used to hear of RK Damani in the 90's but he seems to have disappeared from the scene.

4)He said one of the books that helped him when he was developing his technique was trader Vic's "Methods of a wall street master"

5)In his latest interview he advises ppl to invest for the long run and not to actively trade and says India is in a multi year secular bull run.

Latest interview can be seen here

Code:
http://www.moneycontrol.com/video/market-outlook/refraintrading-investmfs-instead-jhunjhunwala_496967.html?utm_source=Article_Vid

Moew info and a brief biography of the man can be found here

Code:
http://en.wikipedia.org/wiki/Rakesh_Jhunjhunwala
I welcome comments from any members who have any insights about this remarkable man and his methods.
 
#2
One thing is sure that he started out his trading by riding Harshad Mehta's Tail, Harshad moved Tata Tea etc and he made lots of money during that time and yes he surely got out at the right time which is why he is still around and his interest in longterm investment philosophy and patience has rewarded him.

Getting on top and being there is not so easy, he has been there which is his attitude. BTW Big Traders make more money than their brokers :D
 
#3
One thing is sure that he started out his trading by riding Harshad Mehta's Tail, Harshad moved Tata Tea etc and he made lots of money during that time and yes he surely got out at the right time which is why he is still around and his interest in longterm investment philosophy and patience has rewarded him.

Getting on top and being there is not so easy, he has been there which is his attitude. BTW Big Traders make more money than their brokers :D

the wikipedia article says he made a lot of money by trading against Harshad Mehta at the advice of his friend Mr. Damani.

I'm not really sure whether he's a trader or an investor. He calims to be an investor but we can not rely on what he says in public. The wikipedia article says and I quote

While his interviews on CNBC make people believe that he's a very friendly man, in reality, he's a rude, arrogant man
such people never really speak the truth
 
#4
very much possible, he went again harshad mehta after the scam burst out, during harshad mehtas time nobody had the guts to go against him that is for sure.. even citibank had to swallow huge losses becoz harshad made sure the scripts fly like jet. What do you think made tata tea go from 46 to 146 in 3 months ??? that is harshad. I suggest you read a book named "The Scam". That will give you an idea as to what happened and how.. Also, Sankar sharma didnt just get his name as the bear.. he got it after shorting and making huge money after harshad got burst. whatever anybody says.. harshad was always a hero and will be a hero for me.. The biggest Bull of all time..

btw abt rk, he might be arrogant and there might be reasons for it, I am not close to him so cant comment more.. what ever his dad was in income tax so we dont know it might even be his dad's money.. i mean atleast the starting point.. as everyday we see govt. employees are always doing some scam or the other. recent one was the 2lac crore wheat scam from 2003 till date. only god knows what else is hidden.. Angrezon ne bola tha India is poor indians are not.. saale sahi bole.
 

mech71

Active Member
#5
Everything is possible guys atleast in India...Amir se Fakir aur Fakir se Amir. I have just recently read on some blog that one of the well known anchor person who comes daily on CNBC channel has paid an advance tax of 6 crores , this financial year .Just imagine 6 crores for declared amount, then howmuch will be the undeclared one ? He also holds a sizeable amount of property in UAE. How is it possible ???

Anyhow, I believe apart from hard work if destiny is in your favour then there is no one who can held you back.......
 

columbus

Well-Known Member
#6
One thing is sure that he started out his trading by riding Harshad Mehta's Tail, Harshad moved Tata Tea etc and he made lots of money during that time and yes he surely got out at the right time which is why he is still around and his interest in longterm investment philosophy and patience has rewarded him.

Getting on top and being there is not so easy, he has been there which is his attitude. BTW Big Traders make more money than their brokers :D

Media reports when RJ enters a scrip, but hardly report when he is out.
 

columbus

Well-Known Member
#9
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