investing<\/a> led him to make smart decisions and stay motivated despite his initial failures. He still enjoys attending Quarterly meetings and AGMs of companies that he invests in. <\/span><\/p>\nHe asks questions of the management and gives them honest feedback. He does so, not because he has to, but out of a strong desire to see his investment bring in a profit.<\/span><\/p>\n2. Patience is a virtue<\/span><\/h3>\nTo be successful as an investor, you need to understand that investing is a long-term proposition. You need to be aware that it will take a decade or more to see the results of your investments.<\/span><\/p>\nRakesh Jhunjhunwala, the so-called Big Bull of Dalal Street, is a long-term investor. He has immense patience with his stocks and is known to hold on to them for years.<\/span><\/p>\n He’s been investing in Titan Company Ltd, for over two decades now and has made over 1,000% returns on his initial investment in the stock. <\/span><\/p>\nHe says he invests in a company’s business, not its stock, and he doesn’t sell shares even during Stock Market corrections. <\/span><\/p>\nHe has seen so many cycles in the Stock Market that he doesn’t get worried by short-term drops.<\/span><\/p>\nIt is very important to understand that a company’s fundamentals drive its stock price in the long term. <\/span><\/p>\nIn most cases, the stock price reflects the growth potential of the company over the next five to seven years. If you are buying for a year or two, it is just pure speculation.<\/span><\/p>\nThis does not mean that one should buy any stock and hold it for seven years. It needs to be coupled with due diligence and an understanding of the company’s growth potential and future business prospects.<\/span><\/p>\n3. Make the most of the opportunities you see<\/span><\/h3>\nOne of the most important lessons from Rakesh Jhunjhunwala is that an investor should be ready to grab an opportunity. The famous investor believes that opportunities are created through the ups and downs of the market. <\/span><\/p>\nHis example is the 2008 global financial crisis, where he purchased stocks at a discount while they were undervalued in the market.<\/span><\/p>\nHe also took advantage of the 2014 election stock rally by booking profits on his investments. In doing so, he says, investors must be aware of their risk tolerance levels and never be afraid to make losses. <\/span><\/p>\nThis is because, according to him, one will never make money if they are afraid to lose it. Stock market success depends upon your character and temperament rather than on any other factors. <\/span><\/p>\nStock marketing is a game of nerves. You should not get excited or depressed by the ups and downs in stock prices.\u00a0<\/span><\/p>\nI would recommend you always have some spare cash on hand to take advantage of opportunities as they come up. Investing all of your money in the stock market is risky, as history has shown that flexible returns can be cyclical.<\/span><\/p>\n4. The more emotionally you invest in a stock, the more likely it is to lose value<\/span><\/h3>\nAll of us have heard the story of a friend who bought a stock, and that stock went up. <\/span><\/p>\nSo, he or she decided to invest in another one, thinking “I’m so lucky with this investing thing. Let me do it again.”<\/span><\/p>\nSuch emotional investing is one of the biggest mistakes you can make while investing. It comes from a lack of knowledge and an even greater lack of understanding as to why you bought in the first place.<\/span><\/p>\nRakesh Jhunjhunwala believes that investors have to learn how to suppress their emotions and behave like machines to succeed. If you are a consistent investor, you need to have faith in the economic cycle and your investment philosophy. <\/span><\/p>\nIf you are rigid in your investment philosophy, then you will make money in this business.<\/span><\/p>\nTo be a great investor you need to go against your instincts and embrace some counterintuitive behaviors. <\/span><\/p>\nInstead of being fearful when others are greedy and greedy when others are fearful, we need to behave oppositely by buying low and selling high.<\/span><\/p>\n