In this article, FinTuts will share its views or insights about the conversation or an interview of Rakesh Jhunjhunwala with Nikunj Dalmia & Madhu Kela at the Times Network India Economic Conclave 2021-03, so that you can take a self-decision on your investment or wealth creation journey and can be financially literate and atmanirbhar.
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Summary
Let’s try to take key points of what an ace investor, Rakesh Jhunjhunwala has spoken about India’s growth potential, commodities, volatility in equity markets & possibility of correction due to the second wave of the Covid-19.
Key Points: Interview of Rakesh Jhunjhunwala
Private investment:
- It is not that my strike rate is higher than most people.
- I would have made 20 equity investments but only 10 are duds, dead and written off, five have done moderately well and five have done beautifully.
How to take risk, bet and leverage:
- I am a risk-taker and now that risk-taking has become a habit. But you must leverage and leverage extremely when you think the market is giving you unbelievable opportunities.
- But remember one thing leverage has no mother, leverage has no emotions, leverage has no sympathy. If you go wrong, nobody is going to save you.
What changes for an investor in this decade:
- There is information overflow. The speed with which information is transmitted and the quantum of information or data which is available is unbelievable.
- The second thing is volatility both in terms of the lifecycle of companies and in the terms of prices.
Advice to the Robinhood investors:
- This is not a racecourse and all these volumes of fluctuations are very damaging for investors.
- Do not involve yourself in daily gambling where stocks go up 40- 50% every day.
- A mature attitude is to invest safely, give your money to experienced people to invest, to mutual funds, to fund managers, and expect a return that is reasonable.
Why this decade belongs to India:
- India has got all the qualities that are required for growth.
- The reforms are coming through and we will reach an inflection point. I do not know if most Indians are recognizing it, but Indian markets are recognizing it.
- All these things are going to lead to double-digit growth in India.
Opinion regarding Government initiated reforms:
- I think PSU privatization is very very important. Coming to the reforms, I do not understand this farmers’ agitation.
Financial markets in Second wave of the Covid-19:
- I would like to state that we must take precautions but we must also realize that Covid is another flu.
- It is a passing phase and if people sell markets because there is Covid, I think it is a time to buy and this was my call in May.
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The Bottom Line - Interview of Rakesh Jhunjhunwala
- I think returns depend on attitude: whether you want to be speculative or a matured investor.
- Almost 98% of my wealth has always been in equity. I am looking for returns between 15% and 24%.
We hope that this article might have surely helped you to understand in general about the conversation or an interview of Rakesh Jhunjhunwala with Nikunj Dalmia & Madhu Kela at the Times Network India Economic Conclave 2021-03.
If you liked reading about this article, please do visit our other articles regarding Mutual Fund or Passive Income related reviews.
Besides, should you have any concerns, please feel free to comment below or do reach out to us. FinTuts will be happy to help. #HappyInvesting.
Sumit Kalaria is the person behind FinTuts.in. He is actively engaged in finance blogging, not associated with any financial product or service provider. The main focus of his blog is to make investment simple by helping investors to make informed financial decisions.