Rakesh Jhunjhunwala, the Badshah of Dalal Street, has such a calm and relaxed demeanor that most people think that he has a magic wand that helps him find his numerous multibagger stocks.
One can’t imagine Rakesh Jhunjhunwala doing mundane things like reading annual reports and doing number-crunching and data collection.
However, this myth is totally incorrect. What his disciples don’t realize is that there is actually some very hard and back-breaking research work that Rakesh Jhunjhunwala and his team at Rare Enterprises does before he invests in any stock.
We unearthed some evidence of this when we discovered that the renowned Utpal Sheth is Rakesh Jhunjhunwala’s right hand man when it comes to stock selection. Utpal Sheth has a formidable reputation for picking multibagger stocks, as we discovered.
DNA India has now revealed another startling fact: Rakesh Jhunjhunwala actually participates in investor teleconferences, patiently waits his turn while listening to other analysts and asks tough questions from the management!
This time, Aurobindo Pharma’s management was at the receiving end of Rakesh Jhunjhunwala’s cross-examination. With his razor sharp mind, the Badshah subjected the top brass of Aurobindo Pharma to several searching questions relating to their Q4 FY 2013 performance. It is easy to see from the quality and depth of the questions that the Badhshah had done thorough research. To their credit, the management had prepared well and came out with flying colours.
What is surprising is that such participation by Rakesh Jhunjhunwala in investors’ teleconferences is quite normal. I came across upon several such transcripts including some of Titan Industries.
Now you must remember that Rakesh Jhunjhunwala owns nearly 8% of Titan’s equity worth about Rs. 4,000 crore or so. He can easily walk into the office of Bhaskar Bhat, Titan’s MD and ask as many questions as he wants.
Here, you must compliment Rakesh Jhunjhunwala for being a man of principles. He treats himself as an equal and doesn’t mind waiting patiently for his turn to be called out.
Anyway, the take-home point of this episode is that if Rakesh Jhunjhunwala can take the trouble to do such hands-on research on his favourite stocks, investors like you and me should also endeavour to do the same.