Legendary Investor Rakesh Jhunjhunwala died exactly 2 weeks ago. To be honest, we were not surprised because just a week earlier, my partner shared a video of Rakesh, in fact that was the last interview he did and looking at it, It was clear that Rakesh's bet on his own Health did not work. For the Big Bull, the Big Bear had come in form of his health rather the lack of attention to it. So when the eventual news came, we were able to digest it and salute the Man for what he was rather than how he left us. Now, 2 weeks later, we are sure that the cacophony caused by the Social Media too would have been laid to rest and its the right time to turn our attention to the One of the best lessons we can learn from The Big Bull that Rakesh J was.
Rakesh J was-
- An Eternal Optimistic,
- a Risk Taker,
- Believed in India's growth story more than anybody else did,
- A Stock trader and a stock Investor simultaneously.
For us none of these are so special, since luck factors in almost all of them. So what's that special lesson that we learnt from Rakesh and want to carry with us to our graves? Well the answer for this lies in his portfolio. Here's how his portfolio looks -
Out of the known Investments that Rakesh had made, about 40% of his Investment was in one stock - The Titan Company. In fact, Titan is Rakesh's biggest Stock Winner. Now lets roll back 20 Years, it was somewhere in 2003 that Rakesh bought Titan but for how much you know? Three rupees a piece! Yes, today the stock trade INR 2,500. That is 800 times his purchase price.
Look at the below table -
Oh wow, a meagre 24 crores turned out to be 20,000 crores but the only thing that we want our readers to look is the holding period, it is 20 years and counting!
Most of our investors ask us the question, how much should I invest and for how long? We always tell them that how much does not matter as much as "how long". We always find a insatiable need to take the money out once it give 20% 30% returns, we hardly know people who would hold on a investment at least until the point it doubles.
Dear readers, the lesson we want to take away from Rakesh's life is that you should stay the course and not react to share price movements unnecessarily. The reason we propose to choose Equity as an investment option is to garner the power of compounding that will help in creating immense wealth. Compounding does wonders only if you give it a loooooong time.....! Just like Rakesh did with Titan!
So next time you commit to a equity Investment, don't ask your advisor, how long to Invest for but instead ask the Advisor - How can I stay Invested forever!
Rest in Peace the Big Bull.
For financial planning and investment-related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. Visit our website - www.dropletwealth.com
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