Rakesh Jhunjhunwala Approach to Investing
His approach to stock picking is somewhat similar to Warren Buffet – buying an undervalued stock when the crowd is least interested. This is one of the reasons RJ is known as the “Warren Buffet of India”.
For example, during the technology stocks boom in 2000, Rakesh Jhunjhunwala stayed away from those stocks. Instead, he was buying some humble public sector stocks. Bharat Earth Movers Limited (BEML), in which he holds 1.47% stake, had appreciated nearly 64 times between January 2001 and April 2006. So, RJ had a vision and his judgement was perfect in this case.
The India Street attempts to find 5 top stock picks which RJ might be interested in investing. All the companies discussed here belong to the BSE Midcap index. These companies had performed reasonably well in the stock market in the past; but of late, these are not the hottest stocks. But fundamentally the stocks are good; we won’t be surprised if these companies bounce back strongly.
Incidentally, these stocks have fallen more than 45% from their all time highs. So, we can consider these as ‘value’ stocks.
Traded names that pass the Rakesh Jhunjhunwala test:
Company
Arvind Mills (BSE:500101)
Cambridge Solutions (532616)
BPO Services
Engineers India (532178)
Engineering Services
GTL Limited (500160)
Telecom
Orchid Chemicals and
Pharmaceuticals
Chemicals/Pharma
His approach to stock picking is somewhat similar to Warren Buffet – buying an undervalued stock when the crowd is least interested. This is one of the reasons RJ is known as the “Warren Buffet of India”.
For example, during the technology stocks boom in 2000, Rakesh Jhunjhunwala stayed away from those stocks. Instead, he was buying some humble public sector stocks. Bharat Earth Movers Limited (BEML), in which he holds 1.47% stake, had appreciated nearly 64 times between January 2001 and April 2006. So, RJ had a vision and his judgement was perfect in this case.
The India Street attempts to find 5 top stock picks which RJ might be interested in investing. All the companies discussed here belong to the BSE Midcap index. These companies had performed reasonably well in the stock market in the past; but of late, these are not the hottest stocks. But fundamentally the stocks are good; we won’t be surprised if these companies bounce back strongly.
Incidentally, these stocks have fallen more than 45% from their all time highs. So, we can consider these as ‘value’ stocks.
Traded names that pass the Rakesh Jhunjhunwala test:
Company
Arvind Mills (BSE:500101)
Cambridge Solutions (532616)
BPO Services
Engineers India (532178)
Engineering Services
GTL Limited (500160)
Telecom
Orchid Chemicals and
Pharmaceuticals
Chemicals/Pharma
source- theindianstreet.com
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