NEW DELHI: One of the golden laws of business is to only invest in what you know. Rakesh Jhunjhunwala, the late great investor, showed this when, after the March 2020 fall, he advised fellow investor Madhu Kela to avoid the market, but reversed his mind in just 2-3 months when clarity appeared.
“When Covid occurred, I contacted him on a day when the Nifty was at 7,600 amid lockdowns and asked him, ‘kya lagta hai bhaiya?’ (what do you think about the market). He asked me to go. When the Nifty touched 9,000 a few months later, he exclaimed in his normal way, ‘bangdi bech ke laga de’ (buy even if you have to sell bangles) “Kela said.
When he saw the ‘Big Bull’ changing tracks, he wondered why he urged him to sell at 7,600 and buy at 9,000. “He said that no one knew what would happen as a result of Covid, but I now know that this virus is not large enough to endanger the entire community. It was life-threatening, but he was certain that it was a virus in any case “Kela recalled the episode to ET Now.
During Covid, the market veteran, who was close to Jhunjhunwala, said he made one of the greatest bets of his life.
“He revealed his most intimate trade secrets to folks like me. He’d share what he’d learned over the previous 30-40 years. He showed how to think about and assess a business.”
Kela said that he learned how to take risks and place large wagers from him.
When compared to Warren Buffett, Jhunjhunwala stated that it is unfair since there are those who have made more than him, but there can only be one Rakesh Jhunjhunwala.
