Please read the DISCLAIMER at the bottom of the blog.

Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Market. He is supposed to have made Rs 5000 crores by just investing Rs 5000 in Indian Stock Market. Rakesh Jhunjhunwala guru mantra to be successful in stock market is as enumerated below:

(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.

(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.

(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.

(d) One should be able to create a balance between the fear and greed.

(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.

Thus follow Rakesh Jhunjhunwala advice in stock market, BE PATIENT and grow big like Warren Buffet or this iconic man from Dalaal Street.

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Friday, April 17, 2009

let us understand the graph of Geometric Ltd ( Part of Rakesh Jhunjhunwala Portfolio)

Just have a look at this chart of Geometric Ltd. this is the life time history from the time it is listed. The present price of the stock is Rs 19.7/-.

In addition, also notice that on 30 Jul 2004, the stock price was reduced to half ( Probably bonus thereby doubling the equity) and then the stock price fell from Rs 551 to Rs 119.7 on 01/08/05 as the face value of the stock was reduced to Rs 2/-. It means that the present price of Rs 19.7 corresponds to Rs 197 before 30 Jul 2004 i.e. 19.7 x 5 (Split from FV 10 to FV 2)= Rs 98.5 and then multiply by 2 = Rs 197.

Now if this stock crosses Rs 19.8/- ( i.e. Rs 198 before bonus), it is likely to climb steeply to Rs 286/- ( i.e. Rs 28.6 present price). Have a look at the chart below.
But if it fails to cross this value with good volume, it is unlikely to go below its very strong support between Rs 16 - Rs 18/-

Additionally, it is important to note that RAKESH JHUNJHUNWALA is steadiliy increasing his holding in this stock for last three quarters. In Sep 08 he was holding 3185000 shares, which he increased to 3865000 in Dec 08 quarter and he further strenthened his position to 4515000 shares in Mar 09 quarter.

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

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