Rakesh Jhunjhunwala's Tips to Become Rich
Here are some basic investment tips that the Big Bull of Dalal Street swears by
Famously referred to as India’s own Warren Buffett, Rakesh Jhunjhunwala is one of India’s richest investors. The 59-year-old started dabbling in stocks during college and has amassed a wealth of $ 2.5 billion over nearly 35 years of investing and trading in the stock market.
At several occasions, the ace investor has given investment tips that has helped him build his incredible wealth—and you can too! Hear pearls of wisdom from the horse’s mouth to maximise returns from your investments.
Also Read: Warren Buffett's Top 10 Tips for Investing
Emotional Investment is a Sure Way to Make loss in Stock Markets
This quote by the astute investor sums up the fundamental of stock market investing—don’t let emotions drive your investment decisions.
Panic-selling when the markets tank or pumping money when the markets soar are both instances of emotions ruling over investment fundamentals. If you sell when the markets go down, you lose out on the opportunity of buying cheap.
Similarly, greed drives you to buy more when market rise but that’s a costly mistake as you buy expensive.
Also Read: How Emotions Harm Your Investments
Give Your Investments Time to Mature
Just picking good funds or stocks won’t be enough if you don’t hold them for longer periods.
Long-term investing lets you weather market volatility in the case of equity. There is empirical evidence to show that equity mutual funds earn an average 13-14 per cent when held for over seven years.
Never Put Your Hard Earned Money Without Proper Research
Stock markets are not to be treated like casinos for making a quick buck. Markets work on fundamentals and require due research before you start investing.
Before you go shopping on Dalal street, make sure to carry stock research to evaluate its growth prospects and don't foray into stocks on friend's tips. Similarly, don't pick mutual funds just on the basis of past returns as much more goes into determining well performing funds.