Multi-decade bull run in the making, says Jhunjhunwala
Press Trust Of India / Mumbai Nov 18, 2009, 00:35 IST
Rakesh Jhunjhunwala today said the world was facing the greatest slowdown since the Great Depression and India was being recongnised across the world for its resilience.
“India is on the verge of unprecedented multi decade growth. Choice of asset class will decide the return. I have allocated 100 per cent of my portfolio to equity asset class,” he said. He added that seven to eight stocks contributes 80 per cent to his portfolio.
Speaking at a seminar organised by the Indian Institute of Foreign Trade he said that he looks at a time horizon of three-six years for stock market investment. Jhunjhunwala, however, said that he maintains very low churn in his portfolio. “For investing in a company I look at how large is the opportunity for the business because opportunity there is no profit. In a capitalist society you cannot carve an opportunity unless you are efficient,” he added.
He further said that another factor is scalability and the price at which one buys.
“I also do constant examination of business model and capital structure of company. Value investing is relevant in all circumstances in all markets. Quest to be a good investor is a journey and not a destination. One should never get carried away by short-term movement in market. Seeking alpha in today’s environment is no different than seeking alpha in any other environment,” said Jhunjhunwala, partner, Rare Enterprises.
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“India is on the verge of unprecedented multi decade growth. Choice of asset class will decide the return. I have allocated 100 per cent of my portfolio to equity asset class,” he said. He added that seven to eight stocks contributes 80 per cent to his portfolio.
