How often do you pick a valuable lesson from a colleague?
"'Bhav bhagwan hai' (price is God)." That's the first and foremost in a series of lessons from none other than ace investor Rakesh Jhunjhunwala that a former colleague of his has picked and put together on social media.
Prashant Desai, Senior Director at PE and realty investment firm Everstone Capital, has handpicked and compiled eight lessons on investing from the Big Bull, according to a chain of Tweets by Ravi Dharamshi, founder and MD, ValueQuest Investment Advisors.
Both Desai and Dharamshi have earlier worked in RARE Enterprises, an asset management firm owned by Jhunjhunwala, whose plan to foray into aviation took Twitter by storm recently.
"Time for a thread on learnings from RJ. Succinctly put together by my friend and colleague Prashant Desai. #learningsfrommarkets #RakeshJhunjhunwala," Dharamshi wrote in a post on Twitter.
"I worked with Rakesh Jhunjhunwala as his Head of Research and what an amazing learning experience it was. Working closely with him led to several investing lessons, which I still keep going back to," Desai wrote in the original post on LinkedIn.
Here are those eight lessons:
1. 'Bhav bhagwan hai'
2. Right or wrong doesn't matter
What matters is how much money you made when you were right and how much you lost when you were wrong.
3. Don't borrow to invest
Markets may remain irrational more than the rational being can remain solvent.
Beware of this four-letter word. Only invest what you can afford to lose in the short term.
5. Investing cannot be taught
Make mistakes. Make a mistake that you can afford so that you can live to make another one. But never repeat the same mistake.
6. Be an optimist
That's the first quality necessary to succeed as an investor.
7. Conviction and patience
In stock markets, your patience is tested, and conviction is rewarded.
8. Wisdom and wealth are not related
Meanwhile, billionaire investor Jhunjhunwala's proposed airline, Akasa Air, plans to have a fleet of 70 aircraft. He will invest $35 million and hold a stake of around 40 percent in the venture.
Jhunjhunwala's move comes at a time when airlines around the globe are struggling to maintain altitude due to the uncertainty caused by the coronavirus pandemic and fluctuations in oil prices, as fuel costs are a major expense for carriers.