Rakesh Jhunjhunwala, one of the wealthiest Indian investors, is popularly known as the stock guru and “Warren Buffet of India”. He is a Chartered Accountant and manages his portfolio as a partner in his asset management firm, Rare Enterprises. According to Forbes, Jhunjhunwala is the 54th richest person in India, with a net worth of USD 3 billion as of 1st June 2018. He entered the stock market with just Rs 5,000 in 1985 when the Sensex was at 150 points.
Here are Rakesh Jhunjhunwala’s tips for growing rich:
- Investments take time to provide you with higher returns: This is one of the essential things you should keep in mind while investing in the stock market. Each investment you make takes time to give you the desired returns. No investment gives you high returns overnight. If you are in a hurry, you can never earn good investment returns. So, all you have to do is be patient until you make good returns.
- Grab opportunities when they come your way: To become rich, you must be an intelligent investor. As a savvy investor, you should spot and grab opportunities when they come your way. Never miss opportunities. The possibilities may come through various fields like technology, marketing, etc.
- Do not make mistakes which you cannot afford. Mistakes you make as an investor can have a lifelong impact. So you must never make a mistake which cannot be corrected. It would be best if you only risked capital, which you can afford to lose.
- Don’t invest emotionally: When investing in a stock, you must keep your emotions far away. You should not invest in any company just because it has given good returns in the past or because it is someone’s favourite company. Keeping emotions away will help you make money.
- Invest in business, not in the company: Many people invest in stocks of a company at mere face value, without looking at the fundamentals. This is not a good idea. You must understand the nature of the business before investing.
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