Rakesh Jhunjhunwala is the ultimate buy-and-hold investor. Once Rakesh Jhunjhunwala is convinced about the prospects of a stock, he is happy to sit like a sage, unconcerned about short-term movements in the price of a stock.
Rakesh Jhunjhunwala’s other attribute is that he is a concentrated investor. As we discovered to our pleasant surprise, only 3 stocks in Rakesh Jhunjhunwala’s portfolio constitute nearly 65% of the value of the portfolio.
Now, if that is not a concentrated portfolio, what is?
We had once suggested that a lot of “faltu/ time-pass” stocks that Rakesh Jhunjhunwala holds (which constitute the balance of the portfolio) can be trimmed / dumped so that the portfolio looks lean and mean.
Well, we are happy to report that Rakesh Jhunjhunwala appears to be on the way to do that. Business Standard reported that at a stock meeting conducted by Legal Era Private Equity Forum, 2012, Rakesh Jhunjhunwala stated that he intended to reduce the number of companies in his portfolio to a third over the next two or three years.
Rakesh Jhunjhunwala wants to have a very concentrated portfolio with only 7 stocks in which he has supreme confidence.
Presently, Rakesh Jhunjhunwala holds stocks in 29 listed companies with a cumulative valuation of about Rs 3,700 crore. Among his his top investment are Titan Industries, CRISIL, Lupin and Karur Vysya Bank where he holds the bulk of the portfolio.
Rakesh Jhunjhunwala made it clear that there were a number of attractive options amongst listed stocks and that he was not interested in private equity, especially start-ups, due to their high gestation period. He called these kind of stocks a “headache” and said that while they took only 15% of the value, they took 85% of his time.
Rakesh Jhunjhunwala’s Portfolio In 2013