Rakesh Jhunjhunwala’s stock portfolio mauled by the Bears!

Rakesh Jhunjhunwala‘s genial and pleasant temperament hides a razor sharp mind that is able to process vast streams of information in a jiffy. But even he must have been taken aback by the sudden and savage attack launched by the Bears on the Bourses. Till December 2010, all was well and the index was gracefully inching up. However, a slight spike in the inflation numbers in January 2011 gave the Bears the opportunity they were looking for since a long time. The Bears dragged the sensex down from its peak of 21,108 on 5th November 2010 to the present low of 17,775 on 8th February 2011, a dive of 3,333 points or 15.79%. This savage attack has left Rakesh Jhunjhunwala‘s stock portfolio poorer by a whopping Rs. 400 crores (we track Rakesh Jhunjhunwala‘s stock portfolio & holdings more closely than we track our own). When we last had a close look at the portfolio, it was poorer by Rs. 157 crores (see Rakesh Jhunjhunwala’s stock portfolio suffers loss of Rs. 157 crores). However, the unrelenting attack by the Bears has resulted in the present steep plunge in the value of the portfolio.

As usual, the biggest loser was Titan Industries which left Rakesh Jhunjhunwala poorer by Rs. 131.48 crores. To Titan Industries‘ credit, it has managed admirably to stave off the Bears to a great extent, losing only a paltry 6.25%. Hindustan Oil Exploration came a distant second with losses of Rs. 47.85 crores and was followed by Bilcare with losses of Rs. 31.94 crores. In percentage terms, Provogue, which has never given Rakesh Jhunjhunwala anything but grief, came first with a nerve-wracking loss of 37.41%. Even Punj Llyod, which was at one long time ago touted as a challenger to L&T, came on top of the list of losers with a loss of 30%.

If you are wondering what Rakesh Jhunjhunwala would do about the steep depreciation in the value of his portfolio, the answer probably is NOTHING because he symbolizes the quintessential BUY-N-HOLD investor. Rakesh Jhunjhunwala gave a demonstration of his ability to wait-it-out and sweat-it-out in the great crash of 2008. Unlike other investors who panicked and sold off all their holdings terror-stricken, Rakesh Jhunjhunwala kept his cool, calm and composure and held on tightly to his crown jewels Titan Industries, Rallis, Crisil, etc. The result: Rakesh Jhunjhunwala was rewarded with a whopping Rs. 1,000 crores increase in the value of the holdings when the tide turned and the sun started smiling on the stock exchange again (see Rakesh Jhunjhunwala’s holding earns Rs. 1,000 crores)

So, if the sudden change in fortunes in the stock markets has caught you off-guard and you are feeling despondent, just remember what Rakesh Jhunjhunwala, India’s greatest investor, is doing and you will feel optimistic again!