Rakesh Jhunjhunwala - A Profile

Mr Rakesh Jhunjhunwala is a well known and astute Indian investor and trader. He is both a Value investor as well as a trader. Those hard core value investing fans might be wondering how can a single individual be both an investor as well as a trader (since both require completely opposite mental make-up)! Mr. Jhunjhunwala is known for his knack for picking undervalued stocks and sitting on them patiently for years to yield supernormal returns. His most famous quote is "I have made most money not by being right but by sitting tight".

Summary of Investment Philosophy:

According to Mr.Jhunjhunwala, key aspects to consider in an equity investment are:
. Size of the external opportunity
. Sustainability of competitive ability
. Scalability and operating leverage
. Management quality and capital efficiency
. Price and value divergence
Out of the above 5 factors, the last one, i.e., price what you pay is the most important, and if this condition is not satisfied, Mr. Jhunjhunwala will never invest in a stock.He also places great emphasis on superior business models rather than sectors for his investment decisions.