Rakesh Jhunjhunwala’s portfolio was not doing great, similar to those of any long-term investor’s holdings at the end of March 2020. Global markets saw one of the worst declines in history, when the fear of COVID-19 tested every investor’s emotions. The ace investor’s portfolio crashed from a value of Rs 12,865 crores to Rs 9168 crores between the end of December 2019 and March 2020, a dip of 28%.
NIFTY went from all time highs to crashing lows in March, breaking many hearts along the way. And for some, it was the perfect opportunity to pickup their favourite stocks at levels considered impossible before. For Rakesh Jhunjhunwala(RJ), also known as the oracle of Dalal Street, options were plenty. Every company in the market were perfect buys at those levels, but RJ stood by his motto of investing on those no new investor would. And that in itself speaks for his success.
The Big Bull’s portfolio was up by 28% from March 31st levels at Wednesday’s closing prices. Publicly available data pegged his portfolio value at Rs 11,677 crores on Wednesday compared to Rs 9,167 crore at March-end. Holdings in RJ’s gems Titan and Escorts remained the same. He entered Tata Group’s Indian Hotels with a 1% stake. Along with his wife, he increased stakes in Jubilant Life Sciences, Federal Bank, NCC, Firstsource Solutions (FSL) and Rallis India. The duo held more than 1% stake in 29 listed companies at the end of March 2020. The portfolio also saw stakes in Lupin and Agro Tech Foods being trimmed.
When asked in an interview about what it takes to identify a multi-bagger, Jhunjhunwala shared his three-point approach to potential investors: “First, think individually. Then, give out your opinion. Hold shares for a longer time. It all depends on guts, persistence and attitude of the risk-taker. Even in today’s market, I am buying the most battered stocks”.
And that is why he is called the Oracle, his investments never look like the obviously right answers. But time and again, Rakesh Jhunjhunwala’s portfolio has consistently produced multibagger stocks. Watch out for new investment opportunities, the market always has one. And as he rightly mentioned think in a long-term perspective. Equities in general have and will always give the highest returns, but identifying the specific ones that will, is the challenge. Identify those, and you can turn your portfolio in to a list of multibaggers, just like Rakesh Jhunjhunwala did.