How to pick the right stock : Rakesh Jhunjhunwala way

by khalid on 23/12/2010 · 1 comment

Indian Warren Buffett , billionaire investor Rakesh Jhunjhunwala, entered the market in 1984, aged 25, with a 5,000-rupee investment in the iron-ore exporter Sesa Goa. Just three years later, he had turned that into 10 million rupees. This is how he started to become a role model for Indian investors. Today most of the Street goers follow his way of investing in Dalal Street.

Here in this video , he explains how he pick the right stock in the market. Have a look……

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Share trading tips June 4, 2011

Rakesh Jhunjhunwala:When I am convinced about a story, I tend to go overboard–and over-invest. At times, I have ended up investing a lot of money in illiquid stocks, which is obviously difficult to manage. It’s like putting all your eggs in one basket.In the stock markets, both in India and elsewhere, people tend to invest only when there is a wave of euphoria sweeping the markets. It’s a general tendency to act on the belief that one should not be left behind in a booming market, which is a flawed argument.

Lessons:Don’t be overstretched in a stock. Even if you have hit on a great idea, review your allocations in a particular stock periodically. Ideally, you should not invest more than 15 per cent of your portfolio in one stock. Overexposure can be counter-productive, more so if a stock is illiquid

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