Rakesh Jhunjhunwala, the Badshah of Dalal Street, did not become a billionaire just like that. When he buys a stock, he has several tricks up his sleeve – some that we can see and many that we cannot.
We cannot, and should not, attempt to second-guess this ace investor.
After the Badshah bought a truckload of SpiceJet stock and the stock price plunged, ET had the temerity to ask “Did Jhunjhunwala err when he bought a stake in SpiceJet?”
Now, ET should have known better than to ask a frivolous question like that. Of course, to their credit, they kept a respectful tone throughout even while doubting the Badshah’s stock picking skills.
Today, the boot is on the other foot. As SpiceJet’s stock price is surging over news that it is getting its act together, people are beginning to step out of the shadows and complement Rakesh Jhunjhunwala for his brilliant stock picking skills.
FirstPost has candidly acknowledged that everyone but the Badshah got it wrong. “Rakesh Jhunjhunwala has last laugh as SpiceJet up 33% since investment” it says with unabashed admiration. “Whether it was a T20 shot or an averaging of his earlier investment, Rakesh Jhunjhunwala has managed to rescue his reputation as a canny investor” it adds.
FirstPost also points out that Rakesh Jhunjhunwala has disclosed that he has bought SpiceJet as a trading punt and not as an investment. So, he may sell his entire holding at a moment’s notice to encash the well-earned gains. This also implies that when we learn that Rakesh Jhunjhunwala is buying a stock, we should keep a respectful distance and not attempt to join him unless we are absolutely sure of his game plan.
alas..every small investor cannot be jhunjhunwala….nor should he aspire to be.I do not idolize him…I like G.Chokkalingam…also Aberdeen Asset Management.. .especially when ethics and principles also matter.they have also stressed on the fact….sometimes be happy with decent returns and the belief that you invested in a company that gives good returns without volatility and has good corporate governance…was thinking about not investing in cairn India despite low valuations …right decision
http://www.moneycontrol.com/news/business/cairn-india-sacks-around-250-staff-as-low-crude-price-bites_1308185.html
interesting profile of Hugh Young …very sensible portfolio manager …and all stocks they have picked in India have been great wealth creators with very high standards of corporate governance
http://www.ft.com/cms/s/0/0ca5eb5c-86b2-11e4-8a51-00144feabdc0.html#axzz3SJHYziLH
I agree that he is a great investor. But I am not ready to believe that he picked up additional stake in spicejet only on his INSTINCT that this deal is going to get through, Ajay Singh is going to take over from marans. He 100% must have had the knowledge and details about the this proposed deal. I am sure he is not naive to give tens of crores to marans without knowing what is the revival plan of the company. Marans wanted the money, he had it, and before he gave money, he wanted to know all the details, simple as that. All these buys by these big investors just before the IPOs or some material developments in a company can only be attributed to a prior information and knowledge about the same. If I had know this information when he bought I would also have bought, its simple like that.
Remember the golden words of Gordon Gecko in Wall Street Movie. “The most important commodity in the market is INFORMATION”. So, he had the information and made the kill. Nothing like sound foresight or investor skill, at least, in spicejet case.
Completely agree. All these big guys have info which average investor has no access to.When they sell we never get to know till its in Red.
absolutely…it is the information that matters ..that is where retail investors are beaten in the game