There are several aspects of Rakesh Jhunjhunwala’s personality that you have to appreciate.
The first is that the Badshah works extremely hard for a living. This may come as a surprise to several of his fans because the Badshah has such a clam and relaxed demenour that it is hard to image him sweating over mundane things like a Balance Sheet and P&L A/c.
However, the reality is that though the Oracle of Mumbai has the assistance of wizards like Utpal Sheth and Atul Suri, he loves to get his hands dirty by doing primary research.
The second is the Badshah’s utmost humility. Though he holds an oil-tanker load of stocks in several companies, he never puts himself above the other shareholders & analysts. Instead of demanding a private discussion with the top management, which he is entitled to, the Badshah prefers to stand in queue with other analysts and patiently wait his turn to ask questions.
Titan Industries is a case in point. Rakesh Jhunjhunwala’s holding is worth – hold your breath – Rs. 3025 crore. Yet, at most investor conferences, you will find the Badshah attending and listening attentively.
The third is the level of due diligence that the Badshah does. He not only minutely reads the quarterly financial statements, but he also has his finger on all other collateral developments that can affect the fortunes of the stock. Also, the Badshah’s questions are pointed and searching. Nothing escapes the eagle eye of this visionary.
Fourth, and most important, the fact that the Badshah expends so much time and energy is indicative of the fact that he is extremely bullish about the stock.
Aurobindo Pharma is a good example of this. In June 2013, the DNA reported that Rakesh Jhunjhunwala was grilling the management with some hard questions. He later admitted, in September 2013, that he had bought Aurobindo Pharma.
The stock price then was Rs. 170. Today, the stock price is Rs. 1,113, reflecting a gain of 551%.
Tata Motors is another example. In Feb 2013, the ET noted that Rakesh Jhunjhunwala was taking deep interest in Tata Motors and asked Does India’s Warren Buffett, Rakesh Jhunjhunwala, see a Burlington Santa Fe in Tata Motors? That stock is also up 75% since that date.
Even at the latest Q2FY15 concall of Tata Motors, Rakesh Jhunjhunwala was at the forefront asking tough questions from the management. The ET paraphrased the Badshah’s thinking that ‘Tata Motors has best value proposition to offer‘.
Anyway, the clear cut message is that we also need to get our act together and start showing the same deep interest that the Badshah shows for his stocks.