Investor Rakesh Jhunjhunwala has said he will launch an airline that will have up to 70 planes within four years. (Illustration: Moneycontrol)
What can one gain by working closely with ‘India’s Warren Buffett’ Rakesh Jhunjhunwala? In the words of Everstone Group’s senior director Prashant Desai, spending time with the ace investor is akin to taking a “real time masterclass on stock markets and investing”.
Desai, who had earlier in his career worked as the head of research for Jhunjhunwala, recalled eight valuable lessons which he had learnt from the business magnate.
“Investing cannot be taught” and one must “not borrow to invest” are among the learnings which he gained through the experience. “I still keep going back to them,” Desai added, as he shared a list of those lessons on LinkedIn on July 28.
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Here are the eight lessons which Desai recalled learning from Jhunjhunwala.
‘Bhav Bhagwan Hai’
“Always respect the price. At every price there is a buyer and a seller. Only future decides who is right. Learn to respect you can get wrong.”
‘Right or wrong doesn’t matter’
“What matters how much money you made when you were right and how much you lost when you were wrong.”
‘Don’t borrow to invest’
“Markets may remain irrational more than the rational being can remain solvent.”
‘Risk’
“Beware of this four-letter word. Only invest what you can afford to lose in the short term.”
‘Investing cannot be taught’
Make mistakes. Make a mistake that you can afford so that you live to make another one. But never repeat the same mistake.”
‘Be an optimist’
“That’s the first quality necessary to succeed as an investor.”
‘Conviction and Patience’
“In stock markets, your patience is tested, and conviction is rewarded.”
‘Wisdom and wealth are not related’
“Don’t consider your bull market as genius (yours).”
Desai’s LinkedIn post, which has garnered significant interest among those intrigued by the Indian financial market, comes at a time when Jhunjhunwala is in the news again for placing his bet on an upcoming ultra low-cost airline, Akasa. The ‘Big Bull’ is considering to invest $35 million in the venture, and would be owning around 40 percent of the stake.
