There isn't any tell-tale sign of this ace investor turning 50. In a free-wheeling interview with CNBC-TV18's managing editor Udayan Mukherjee, Rakesh Jhunjhunwala admits that "age" hasn't mellowed him down nor has it stopped him from being a ladies' man. This man with Midas touch non-chalantly says he finds Sushmita Sen hot.
Of course, this Warren Buffet of India's mind is dominated by stocks and their performance. While there are several stocks with which Jhunjhunwala is emotionally attached to, there are still some which generate a reasonable degree of annoyance. After over two decades of trading, Jhunjhunwala looks back at the changing face of his portfolio.
Rakesh Jhunjhunwala
Below is a verbatim transcript of the interview.
Mukherjee: A belated Happy Birthday.
Jhunjhunwala: Thank you.
Wish Rakesh Jhunjhunwala on his 50th birthday
Mukherjee: How does it feel to be 50?
Jhunjhunwala: My nephew told me that 40 is the old age of youth and 50 is the youth of old age. It feels to be youthful. I think it makes you reflect, otherwise it makes no difference. Same day passes by, same routine, same activity.
Mukherjee: You feel old?
Jhunjhunwala: I don’t feel old but if feel reflective. Whatever I did on this birthday and whatever thoughts I had in the interaction I had with people, it left a deep impression on my mind and it has made me reflect. It has given me a feeling that there is not much left ahead. It is 10-15-20-25, I think beyond 65 years all age is bonus. So there is less time to do all that has to be done.
Mukherjee: We will talk about the reflective part; first tell us what happened in Mauritius? Or is it that what happens in Mauritius stays in Mauritius like Dubai?
Jhunjhunwala: Basically we partied, we did some water sports, did lot of spa. We had carnival on the beach. We played Volleyball on the beach, table tennis, football. Then we had a rain dance, and then we had a Karaoke night, it was great fun. People really had a ball and the biggest gift I got on my birthday, the joy I had was seeing the joy others were having.
Mukherjee: Terrific, maybe next time I will make it for your sixtieth.Has age mellowed you? I know you have a feisty temper, has all of that calmed down with age?
Jhunjhunwala: I don't think so age is mellowing me. Let me admit it's humbling me. Time is teaching me slowly but surely that I can always be wrong. It also makes you realize that how small you are in the larger scheme of things
Jhunjhunwala: Well not necessarily but I would say more resent, less I would say impulsive. See Udayan what I feel is, may be it amounts to boasting, that it is giving polish to my best qualities, right? Age and experience is polishing my best qualities and it is mellowing the worst.
Mukherjee: What to your mind are your best and worst qualities?
Jhunjhunwala: I think my worst qualities are my personal habits, my anger.
Mukherjee: You do concede that you have a temper?
Jhunjhunwala: I do, I have a temper. And means nothing, in the end I realize that if I ever In 22 years of marriage I must have shouted at Rekha [wife] at least 2200 times and Rekha would have shouted back only 2 times.
Mukherjee: Have you regretted all those times?
Jhunjhunwala: I always, I regret them and I go to the, while in the car I call her up and apologies, unless I do that I don’t feel comfortable.
Rekha Jhunjhunwala: He is the same person what I knew him last 23 years. He always used to ask me like do you love me, you love me, so now I can tell him yes I love him. I love him what he was, what he is, he is a perfect husband.
Jhunjhunwala: There is a very good side to it but there is also blurring side to it, that’s what has cost me to miss, miss some of the greater joy’s of life. Miss that I wished I had spent far more time with my farther and I can never do that again. So I think those are the good qualities I think is, first I think the best quality I have, I am good to heart. What is in my heart is on my face and what is in my mouth is my heart. I think that endures me, I am frank, I think I am a good assessor of situations.
Sunday, July 25, 2010
Tuesday, July 6, 2010
20 stocks you must own-Mix Multibaggers in your Portfolio. Lower your Risk, increase Returns ! www.midcaps.in/AssuredHighReturns
Around this time last year, Mumbai was still impatiently waiting for the arrival of the monsoons. It would have been the season’s best reprieve for anxious investors who were till then reeling under the heat of a global market meltdown. In retrospect though, it may have been the ideal starting point for Indian investors.
20 stocks you must own
Exactly a year before now, in our first cover story on the markets, we had recommended that investors resume buying. We had recommended a portfolio of 20 stocks that would mirror an array of opportunities the Indian economy presented.
A year later, barring two companies, the portfolio has ended with positive returns. Three companies P&G, Page Industries and Pidilite have returned 100%. Five other stocks gained 70%.
On the whole, the Forbes India 20 portfolio was up 54%, compared to 45% of the mid-cap index (most of our recommendation was from this category). The broad market went up by 15% during the same time.
To be honest, there were enough easy pickings. Many companies were powering ahead before the global bust and yet, their valuations had fallen off the cliff. Almost all our stock picks had a strong domestic story that helped insulate them from the global instability.
But that was last year. Many Indian companies are now quickly reaching their pre-slump level in sales. Having scaled back expansion plans, they will soon churn out their full capacities, leaving little headroom for volume growth.
Investors have already guessed that Indian companies will continue to perform well, and lapped up stocks at prices that have already discounted the current financial year’s earnings.
Our considered opinion is that any investments in the stock market may not yield above-average returns in the next one year.
Mix Multibaggers in your Portfolio. Lower your Risk, increase Returns ! www.midcaps.in/AssuredHighReturns
20 stocks you must own
High net-worth individuals (HNIs) have already moved from equities to structured debt products to signal the flight to safety. The fog of global uncertainty hasn’t quite lifted. On the contrary, economist Paul Krugman has predicted the makings of the third Depression. To cut a long story short, it will, therefore, be more difficult to construct a portfolio that will return as much as the one we chose last year.
In a fast growing economy, there are bound to businesses that will deliver better than average returns. We tend to lean towards the views of experts who reckon that the valuations of Indian markets at a P/E ratio of 18 times 2010-11 earnings cannot be considered as expensive. The historic average tends to be 20, while a ratio of 24 could well enter the danger zone.
Last year, we had five themes in our recommendations. We included ones that captured very risky bets (Suzlon and Wockhardt, two stocks in that category failed to deliver). We also included smaller cap companies like Page Industries among those that run ahead of the broad market in good times. The aim was to maximise gains rather than stay conservative.
20 stocks you must own
There is a fundamental difference in the theme this year. Our immediate focus is to preserve capital, while aiming for decent returns (the long term returns from equities in India is 15%). So we’ve left out the relatively small companies, which typically fall harder in a downswing. Some of the other parameters have not changed. “This market is above fair value and investors should not overpay for growth,” says Rajeev Thakker, CEO of Parag Parikh Financial Advisory. We’ve retained our focus on picking stocks that have a large domestic play. We’ve also focussed on sectors that have shown dramatic consumption trends: Real estate, auto, banks and financial services. We’ve added the fast-growing infrastructure sector too.
Here’s a sense of why we selected some of the stocks and themes.
In the auto segment, we picked India’s largest car maker Maruti, tractor firm Escorts and battery maker Exide Industries. These stocks have run up in the recent past and seem fully valued. But the demand for small cars has continued to surge forcing Maruti to set up another plant. Trading at a P/E of 16, the stock still has a lot of steam.
Exide rides indirectly on the growing automobile sales – it makes nearly two-thirds of the batteries that go into cars and trucks. Exide’s core return on capital employed (ROCE) is at 85% and its management believes electric vehicles and hybrid vehicles could well be its next big opportunity.
The banking sector at the moment is valued on the higher side. But ICICI Bank is a good buy at 1.85 times the book value. Under CEO Chanda Kochhar, it has signaled a clear return to profitable growth. Yes Bank, on the other hand, plans to foray into the high-return micro-finance business. It is trying to improve its public deposits too. For the long term investor, this is one bank to catch at an early stage.
20 stocks you must own
Bajaj Finserv is a good insurance play. The stock has performed well over the past three months, up 28%, after benefitting from RBI’s circular on revised norms for transfer of shares to overseas entities.
There are some unusual names in the portfolio. BGR Energy is one. BGR Energy is engaged in power equipment and construction and it is expected that the power generation capacities are expected to peak in India. Based on a recent Goldman Sachs report, BGR is expected to add USD 4.7 billion in orders and report 43% sales growth CAGR and 33% RoE over the next two years. Over the next year, analysts expect BCG’s share price to move up by about 25%.
Then there is IVRCL, the integrated infrastructure player, which gave a guidance of Rs 7,000 crore for its top line in 2010-11. It has a huge order book of Rs. 32,000 crore. On 2010-11 numbers, the company trades at a P/E of 12.2 times.
Indian IT firms may have lost a bit of their margins, but of late, they’ve gained at the expense of global tech majors Accenture and Oracle. We sense value in HCL Tech, which is fast improving its standing among the top four and has registered the strongest revenue growth in three of the last four quarters. Aggressive bidding during the slowdown gave HCL entry into marquee client accounts. Discretionary spending is returning sooner than expected, and we expect HCL to be a key beneficiary from the revival in ERP consulting projects. Besides, its valuation is cheap compared to its peers.
20 stocks you must own
Exactly a year before now, in our first cover story on the markets, we had recommended that investors resume buying. We had recommended a portfolio of 20 stocks that would mirror an array of opportunities the Indian economy presented.
A year later, barring two companies, the portfolio has ended with positive returns. Three companies P&G, Page Industries and Pidilite have returned 100%. Five other stocks gained 70%.
On the whole, the Forbes India 20 portfolio was up 54%, compared to 45% of the mid-cap index (most of our recommendation was from this category). The broad market went up by 15% during the same time.
To be honest, there were enough easy pickings. Many companies were powering ahead before the global bust and yet, their valuations had fallen off the cliff. Almost all our stock picks had a strong domestic story that helped insulate them from the global instability.
But that was last year. Many Indian companies are now quickly reaching their pre-slump level in sales. Having scaled back expansion plans, they will soon churn out their full capacities, leaving little headroom for volume growth.
Investors have already guessed that Indian companies will continue to perform well, and lapped up stocks at prices that have already discounted the current financial year’s earnings.
Our considered opinion is that any investments in the stock market may not yield above-average returns in the next one year.
Mix Multibaggers in your Portfolio. Lower your Risk, increase Returns ! www.midcaps.in/AssuredHighReturns
20 stocks you must own
High net-worth individuals (HNIs) have already moved from equities to structured debt products to signal the flight to safety. The fog of global uncertainty hasn’t quite lifted. On the contrary, economist Paul Krugman has predicted the makings of the third Depression. To cut a long story short, it will, therefore, be more difficult to construct a portfolio that will return as much as the one we chose last year.
In a fast growing economy, there are bound to businesses that will deliver better than average returns. We tend to lean towards the views of experts who reckon that the valuations of Indian markets at a P/E ratio of 18 times 2010-11 earnings cannot be considered as expensive. The historic average tends to be 20, while a ratio of 24 could well enter the danger zone.
Last year, we had five themes in our recommendations. We included ones that captured very risky bets (Suzlon and Wockhardt, two stocks in that category failed to deliver). We also included smaller cap companies like Page Industries among those that run ahead of the broad market in good times. The aim was to maximise gains rather than stay conservative.
20 stocks you must own
There is a fundamental difference in the theme this year. Our immediate focus is to preserve capital, while aiming for decent returns (the long term returns from equities in India is 15%). So we’ve left out the relatively small companies, which typically fall harder in a downswing. Some of the other parameters have not changed. “This market is above fair value and investors should not overpay for growth,” says Rajeev Thakker, CEO of Parag Parikh Financial Advisory. We’ve retained our focus on picking stocks that have a large domestic play. We’ve also focussed on sectors that have shown dramatic consumption trends: Real estate, auto, banks and financial services. We’ve added the fast-growing infrastructure sector too.
Here’s a sense of why we selected some of the stocks and themes.
In the auto segment, we picked India’s largest car maker Maruti, tractor firm Escorts and battery maker Exide Industries. These stocks have run up in the recent past and seem fully valued. But the demand for small cars has continued to surge forcing Maruti to set up another plant. Trading at a P/E of 16, the stock still has a lot of steam.
Exide rides indirectly on the growing automobile sales – it makes nearly two-thirds of the batteries that go into cars and trucks. Exide’s core return on capital employed (ROCE) is at 85% and its management believes electric vehicles and hybrid vehicles could well be its next big opportunity.
The banking sector at the moment is valued on the higher side. But ICICI Bank is a good buy at 1.85 times the book value. Under CEO Chanda Kochhar, it has signaled a clear return to profitable growth. Yes Bank, on the other hand, plans to foray into the high-return micro-finance business. It is trying to improve its public deposits too. For the long term investor, this is one bank to catch at an early stage.
20 stocks you must own
Bajaj Finserv is a good insurance play. The stock has performed well over the past three months, up 28%, after benefitting from RBI’s circular on revised norms for transfer of shares to overseas entities.
There are some unusual names in the portfolio. BGR Energy is one. BGR Energy is engaged in power equipment and construction and it is expected that the power generation capacities are expected to peak in India. Based on a recent Goldman Sachs report, BGR is expected to add USD 4.7 billion in orders and report 43% sales growth CAGR and 33% RoE over the next two years. Over the next year, analysts expect BCG’s share price to move up by about 25%.
Then there is IVRCL, the integrated infrastructure player, which gave a guidance of Rs 7,000 crore for its top line in 2010-11. It has a huge order book of Rs. 32,000 crore. On 2010-11 numbers, the company trades at a P/E of 12.2 times.
Indian IT firms may have lost a bit of their margins, but of late, they’ve gained at the expense of global tech majors Accenture and Oracle. We sense value in HCL Tech, which is fast improving its standing among the top four and has registered the strongest revenue growth in three of the last four quarters. Aggressive bidding during the slowdown gave HCL entry into marquee client accounts. Discretionary spending is returning sooner than expected, and we expect HCL to be a key beneficiary from the revival in ERP consulting projects. Besides, its valuation is cheap compared to its peers.
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