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.