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basant
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   Posted: 05/Jun/2007 at 1:22pm |
Originally posted by prnpani
I would say that many of the communication can be sent by email to whoever has provided an email id to the company/dmat account and the companies can use the money thus saved for charity or any other such purpose.
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Charity begins at home
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deveshkayal
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Posted: 05/Jun/2007 at 3:20pm |
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Today is a World Environment Day, i agree with RJ!!!!
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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kulman
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Posted: 05/Jun/2007 at 4:27pm |
The purpose of any approach is to have a final result or goal and my goal is to achieve absolute returns as against relative returns. By absolute returns, I mean inflation adjusted, risk adjusted post-tax returns. It is not my goal to merely earn returns higher than the market indices. This is also driven by the fact that I do not manage any third party's money and my returns are not driven by any fees based on any benchmarks.---RJ (from the booklet 'My Investment Approach', courtesy: DK)
Individual investors must remember this.
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 05/Jun/2007 at 6:57pm |
Originally posted by smartcat
His portfolio value now is close to Rs. 2200 crores. Last quarter, it was Rs. 1750 crores. He added a cool Rs. 450 crores to his net worth in just one quarter!
I actually know very very little about him. Questions -
- When did RJ start investing?
- Was he a rich guy even before his investments? It is easier to grow to these levels from Rs. 10 crores than from Rs. 10 lakhs.
- What does 'Rare Enterprises' do? On TV, he had mentioned that he would not like to get into asset management business. |
Rj started with a meagre Rs 10,000 somewhere in 1985 and with some trading profit was on a leverage capital of Rs 10 lacs in a few months now if you compound that Rs 10 lacs at 57% for 22 years You do get to the figure of Rs 2250 crores. Remember we discussed the magic of compounding and RJ is one example on that. Basically he came out unhurt both in 1992 (Harshad Mehta) and in 2000 (ketan pareikh). Now avoiding the biggest mistakes is one of the ingredients to creating this ocean of wealth.
But he had bet very aggressively in 1989 or thereabouts he was the only person long on the markets and I think Madhu Dandvate was to present the budget and the whole market was short and RJ the only lone long standing bull! he minted. I heard that In 1992 he was among the few who could time Harshad mehta's bubble to perfection. The other being Radha Kishan Damani - of Bright STar investment.SO while the whole nation bled and lost these two investors minted.
Radha Kishanji lost a fair percentage of his portfolio in BPCL and HPCL and then he diverted into D-mart and became an investor.
The striking thing about thes etwo investors is that unlike a Jesse Livermore (he stands out far above anyone in trading) these two changed their style after making some decent money.
He himslef admitted during my meeting with him that he started out with a small capital and huge leverage but remember for every RJ that is born we have hundreds of martyrs like him. But that did not prevent RJ from thinking big maybe had he gone into that bank fixed deposit approach after making Rs 10 crores we would not have been discussing him on this forum!!!
Note: ALl this is from market talk and none of this is confirmed so please keep that in mind.
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smartcat
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Posted: 05/Jun/2007 at 7:34pm |
| if you compound that Rs 10 lacs at 57% for 22 years |
As mentioned before, I guess the time factor (22 years) is the most important number, followed by returns (57%) and initial capital (Rs. 10 lakhs).
How did he avoid 2000? RJ never invested in any of the tech stocks? And are you sure RJ is not using leverage now?
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basant
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Posted: 05/Jun/2007 at 7:40pm |
Originally posted by smartcat
| if you compound that Rs 10 lacs at 57% for 22 years |
As mentioned before, I guess the time factor (22 years) is the most important number, followed by returns (57%) and initial capital (Rs. 10 lakhs).
How did he avoid 2000? RJ never invested in any of the tech stocks? And are you sure RJ is not using leverage now? |
He still uses leverage. I remember in 2002 he was stumped for margin calls and sold NIIT etc on a day when those stocks tanked 18% under his own weight. But as he says
" You have to lose many a battle to win the war"
And by the looks of it he seems to be winning right now 
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deveshkayal
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Posted: 05/Jun/2007 at 8:35pm |
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RJ also said Dont be afraid to make a mistake.Book losses and get out unless u have a RICH father in law!
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
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Posted: 05/Jun/2007 at 9:23pm |
Originally posted by Mr. V
Originally posted by basant
One of the smartest investors in India believes in the benefits of portfolio concentration. His top 5 holdings account for 63.26% of his portfolio and his top 10 holdings account for almost 83.23% of his portfolio.
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Originally posted by basant
The wonderful thing with RJ is not that he does not go wrong but he goes wrong and messes up in companies that make no difference to his portfolio. For example he messed up in TV today and Midday but see these stocks have had no effect on his portfolio. |
Since RJ's top 10 holding constitute 80%+ of his portfolio, why does he bother with miniscule holdings in the other stocks as it wouldn't really make any big difference to his overall portfolio.
Does he invest in these companies to keep them in his radar and then increase his holdings as they start performing or sell them off (TV Today & Midday) if it turns out to be a mistake ?
If that's the case then what kind of time horizon does he usually hold on to the duds ? |
Actually he would have started with almost equal money upfront. Say Rs 30 crores in Tv Today and Rs 30 crores in Praj!
Now he went right on Praj but did not switch his winning position (Praj) into his losing position say Tv Today that is what created the difference.
So it is a question of letting the profits run!!!
Edited by basant - 05/Jun/2007 at 9:25pm
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