When asked how does one become market legends Rakesh Jhunjhunwala and Warren Buffett, four panellists at BT Market Today Summit had a few interesting replies.
Vijay Chandok, MD & CEO at ICICI Securities said people like Jhunjhunwala and other successful investors had/have certain traits. The first is their ability to take risks. Identifying trends ahead of the others, sticking to conviction and having patience were among some of the traits that such investors displayed that make them successful, Chandok said. “I don’t think that makes up the man (Jhunjhunwala). That man was so much more than that.”
The passion and having a heart and soul for investment and wealth creation is a starting point, said Dhiraj Relli, MD & CEO at HDFC Securities. Relli said one has to acquire knowledge on regular intervals and make learning as part of the essence of the investing.
“It is difficult to emulate Jhunjhunwala or Buffett, but you can get closer to that with these traits,” Relli added.
Basant Maheshwari, Investor & Author, is of the opinion that if one wants to be Rakesh Jhunjhunwala, no financial advisor would advise him/her to do things that they actually should do to become one like Jhunjhunwala. Maheshwari said one has to have intelligence, passion, excessive risk-taking ability and huge leverage. “On the other hand, Warren Buffett is more of an entrepreneur than an investor. He manages people or rather money. To be Rakesh Jhunjhunwala, you need the roll of dice to fall in your favour,” Maheshwari said.
Nilesh Shah, MD at CEO at Kotak AMC, in a more jocular mode, said only if he knew the answer, he would have been a billionaire.
That said, Shah said the only way to protect downside in the market is to follow asset allocation policy. “Take risks that you can manage. Buy things when stocks are cheaper and sell when they are dearer. It is easier said than done,” Shah said.
The session was moderated by Business Today TV Managing Editor Siddharth Zarabi. The topic of the session was ‘The coming of age of retail investors’.