Don't Follow Them Blindly

Any veteran shall say, just blindly following the big guns of the capital markets will leave you nowhere. And the same comes true when we look at the performance of the big bull Rakesh Jhunjhunwala’s portfolio in the fourth quarter of the last fiscal.

For the aforesaid period Nifty- the benchmark index of the National Stock Exchange, was declined by just 4.5% while some stocks from the Big B’s portfolio declined as much as in the range of 40-70% for the same period.

Small investors often overlook the rationale behind investment, the entry price of the investment and the time-horizon envisaged by these capital market honchos and blindly start buying shares and eventually end up repenting.

Rakesh Jhunjhunwala had recently bought shares of Titan Industries at a price which was about around 150 times of his first purchase(of the same stock). 

This means, the first batch of shares had given him a whopping return of 15,000 % and this is why even a major price-drop from the last purchase price keeps him unperturbed.

Performance of Rakesh Jhunjhunwala shares

FY 13 Q2 Review:

Rakesh Jhunjhunwala portfolio shares in FY 13 Q2

                                  

Rakesh Jhunjhunwala, a billionaire investor often called as Indian Warren Buffett who recently hit the headlines by for quashing the political parties opposing the introduction of FDI in retail, has recently increased his stake in Mumbai based Godrej group engineering solution provider firm Geometric Ltd.

Rakesh Jhunjhunwala along with his wife Rekha now holds around 14.55 % stake. This stock soared 56% in Q2.

Another member of his portfolio Titan saw 13 % appreciation in price. Jewellery accounts for more than 70 % of the company's revenue and soaring gold prices put downward pressure on its revenue which capped its price rise.Opening of the retail sector for foreign equity caused even Pantaloon Retail to soar 13 % which was declining earlier.

Performance of Rakesh Jhunjhunwala shares

Rakesh jhunjhunwala's shares 

Though RJ's portfolio could not perform well in previous calendar year but many of his portfolio stocks have risen smartly in the current year. NCC and Auto line industries topped the list with 75 and 73 percent returns respectively.

Top-rung stocks like Titan and VIP rose by 42 and 43 percent respectively.

Rakesh Jhunjhunwala is a long term investor and he doesn't care about   notional profits or losses.

He is a firm believer in India growth story and according to him golden period for Indian equities is yet to come. Following is the snapshot of the performance of his shares in the present year so for.

performance of the Rakesh Jhunjhunwala's portfolio in 2011

The year 2011 was nothing less than a nightmare for Indian capital markets with Indian benchmark index NIFTY plunging by 25 per cent in a year. Rakesh Jhunjhunwala, Indian version of USA’s investor billionaire warren Buffett too was not spared and his portfolio took a hard beating.

Rakesh Jhunjhunwala is a long term investor and he even keeps stocks for a period over a decade and this erosion in his portfolio is like a blip for him as losses are notional and not real ones.

Any profits or losses on a portfolio are notional unless and until profits or losses are not booked.

Another important point is that Rakesh Jhunjhunwala had bought many of these stocks at dirt-cheap prices and this is a lesson for gullible investors who blindly end up buying these stocks at any price without consulting any investment advisors.

Among the shares of Rakesh jhunjhunwala's portfolio, Crisil was the only share which gave a decent return of 44 per cent and remaining all gave negative returns in the year 2011.

Performance of Rakesh Jhunjhunwala's portfolio in 2011

ps:In pipavav shipyard RK family holds 10million convertible warrants