Rakesh Jhunjhunwala: 18-21 percent profit is better in the stock market, be careful with these three letters of risk

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Investments started with Rs 5000 crore to become Rs 46,000 crore in 37 years. This is a strategy that attracts everyone. If any portfolio gives you an annual return of 18 to 21 per cent, then you are earning like a king. This is because no traditional investment instrument in the whole world gives returns of more than 5-7 per cent per annum. In lieu of this, the profit of 18-21 per cent is 3 times more. For this you have to maintain realistic expectations. Important points have to be caught at the time of investment.

You are investing in a future that is uncertain. Can’t even predict it after a while. Never invest at unfair valuations. Never rush to invest in companies that are in the limelight. They believed that invest only as much as you dare to lose in the short term. The market can be irrational at any time.

stock market is always right
All the market momentum is ahead of us. The stock market is always right. There is no market time. When there is doom and darkness, do not forget that it is dark even before dawn. Always respect prices. At every price there is a buyer and a seller. The future decides who is right. So respect. You might be wrong too. He said that I am not interested in valuation of any company.

  • I am interested in businesses that grow in a big way. Valuation couldn’t be more important than my business model and consistency.
never repeat the same mistake

It is natural to make mistakes. But make mistakes only to the extent that you can tolerate it. That is, invest only as much as you are capable of recovering in case of drowning. This will allow you to stand up again. But never repeat the same mistake. What matters to you is how much money you made when you were right and how much money you lost when you were wrong. One should always be careful with this three letter of risk.

Not Valuation, Startups Generate Cash
Startups like Nykaa, Zomato, Paytm, Policybazaar brought IPOs in the stock market last year. But Jhunjhunwala stayed away from all this. He said that I do not want to go to the startup party. He stayed away from it even as the digitization drive in India intensified. He said that I want startups to focus on a business model that generates cash rather than a $3 billion or $10 billion valuation. He has no capital. That’s why capital is important.

The world of cryptocurrency will collapse
Jhunjhunwala also considered crypto wrong. He said that we are not interested in investments which fluctuate up to 20 per cent in a day. Even investing 5 dollars in such an investment is a wrong decision. Equity market and crypto is completely different. The crypto world will collapse one day. There is no control over its supply. Nor is there any control over its value.

Expansion

Investments started with Rs 5000 crore to become Rs 46,000 crore in 37 years. This is a strategy that attracts everyone. If any portfolio gives you an annual return of 18 to 21 per cent, then you are earning like a king. This is because no traditional investment instrument in the whole world gives returns of more than 5-7 per cent per annum. In lieu of this, the profit of 18-21 per cent is 3 times more. For this you have to maintain realistic expectations. Important points have to be caught at the time of investment.

You are investing in a future that is uncertain. Can’t even predict it after a while. Never invest at unfair valuations. Never rush to invest in companies that are in the limelight. They believed that invest only as much as you dare to lose in the short term. The market can be irrational at any time.

stock market is always right

All the market momentum is ahead of us. The stock market is always right. There is no market time. When there is doom and darkness, do not forget that it is dark even before dawn. Always respect prices. At every price there is a buyer and a seller. The future decides who is right. So respect. You might be wrong too. He said that I am not interested in valuation of any company.

  • I am interested in businesses that grow in a big way. Valuation couldn’t be more important than my business model and consistency.

never repeat the same mistake

It is natural to make mistakes. But make mistakes only to the extent that you can tolerate it. That is, invest only as much as you are capable of recovering in case of drowning. This will allow you to stand up again. But never repeat the same mistake. What matters to you is how much money you made when you were right and how much money you lost when you were wrong. One should always be careful with this three letter of risk.

Not Valuation, Startups Generate Cash

Startups like Nykaa, Zomato, Paytm, Policybazaar brought IPOs in the stock market last year. But Jhunjhunwala stayed away from all this. He said that I do not want to go to the startup party. He stayed away from it even as the digitization drive in India intensified. He said that I want startups to focus on a business model that generates cash rather than a $3 billion or $10 billion valuation. He has no capital. That’s why capital is important.

The world of cryptocurrency will collapse

Jhunjhunwala also considered crypto wrong. He said that we are not interested in investments which fluctuate up to 20 per cent in a day. Even investing 5 dollars in such an investment is a wrong decision. Equity market and crypto is completely different. The crypto world will collapse one day. There is no control over its supply. Nor is there any control over its value.

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