The most talked about Rakesh Jhunjhunwala bets, in Titan in Hospital 40 in 2003, were made by chance, according to Ramesh Damani.It was not placed based on broad research or tip-off, as mostly believed, he said in an interview given to N Mahakshmi about Jhunjhunwala, investors and the person. Titan shares have grown nearly 62x to 2,470 RS.
Lots of time, the Jhunjhunwala approach is to invest, then investigate, then when he is sure, adding position, said Damani, adding that adding position to a higher price is very difficult to do.Damani, a famous value investor is old friend Jhunjhunwala, and has known Big Bull from the initial days on the stock market. They remain friends for more than three decades.
“In 2003, his broker called him and said that he had around 10 Titan shares that someone wanted to sell. ‘If you buy 10 lakh from them, the price is 40. If you buy 30 lakh, the price will be 38, and if you buy 50 lakh, the price will be 36 ‘. He understood that in RS 40, market capitalization would reach around RS 300 Crore, with a good brand name, it might be more valuable, “recalls Damani. He decided to apply and buy the smallest lot, and then he began to follow the company.
“Over the next few years, he continued to add to his position and buy almost 5% of the company,” Damani said. “There is a folklore that he bought Titan after learning it or after accessing some insider information, but that might not be true. He bought it because his broker had a lot and he came to Rakesh before going to someone else, “he added.
“Sometimes, truth is stranger than fiction,” he said. While Titan might come as luck, to make a call when an opportunity is presented to you far from easier. It is still more difficult to continue to add money to improve positions at a higher price. “This is very difficult. I do that (add a position at a higher price) sometimes and sometimes and generally get mud on my face. Very difficult because at this time we have the highest level of confidence, stock tends to peak and go down, “said Damani.
Obsession about trade, extraordinary focus, the ability to take big bets, and take losses in different steps Jhunjhunwala from other investors. “That (taking super betting) is still an ongoing job for me. I have a number of them (Super Multi-Pembalut) in my portfolio but I am too trapped in the middle class (mindset) to be able to receive the call and take the risk of loss, “said Damani.
Jhunjhunwala is not immune to the ego bruises that come after taking the wrong bet. But, he can take it quickly. “His attitude is best defined by the main Bollywood song Har Fikar Ko Dhuen Mein Udata Chala Gaya,” said his friend. He shared a story about an unwavering 24×7 Jhunjhunwala focus, 24×7 in trade. One time when Jhunjhunwala and the whole group of friends were in Macau, they went to gamble until 2.30 in the morning. Apart from the time difference, Rakesh fell asleep for two hours and was ready to return to the market because Tata Motors announced the results that day. “Whether he is in the hospital, wheelchair or investigation room, he is captivated to the market,” said Damani.
He became tall adrenaline. Meanwhile, it resulted in his success that was too big, it made him ignore his health. “As friends, we all feel uneasy about losing it because of the fall of life, when you are waiting for your children to get married, to retire and spend time with your grandchildren … how bigger the excitement than that,” said Damani in the atmosphere a painful heart.