Rakesh Jhunjhunwala, one of India's most famous investors, recently made Rs 500 crore investment in Tata Motors.
While it is not clear whether the Big Bull has made a trading bet on the stock or is a long term holding, it makes for an interesting choice for value investors.
Is there enough margin of safety in the current valuations or the run up in recent months has made it a risky bet?
I try to answer these questions in the video.
Do take a look.
Here's more on value investing:
Rahul Shah co-head of research at Equitymaster is the editor of (Research Analyst), Editor, Microcap Millionaires, Exponential Profits, Double Income, Midcap Value Alert and Momentum Profits. Rahul has over 20 years of experience in financial markets as an analyst and editor. Rahul first joined Equitymaster as a Research Analyst, fresh out of university in 2003 but left shortly after to pursue his dream job with a Swiss investment bank. However, he quickly became disillusioned working for the 'financial establishment'. He learned first-hand the greedy stereotype of an investment banker is true and became uncomfortable working for a company that put profit above everything else. In 2006, Rahul re-joined Equitymas ter to serve honest, hardworking Indians like his father, who want to take control of their financial future - and not leave it in the hands of greedy money managers. Following the investment principles of Benjamin Graham (the bestselling author of The Intelligent Investor) and Warren Buffet (considered the world's greatest living investor), Rahul has recommended some of the biggest winners in Equitymaster's history.
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3 Responses to "Rakesh Jhunjhunwala's Rs 500 Crore Bet on Tata Motors: A Sixer or a Hit-Wicket?"
ameet
Oct 30, 2020superb evaluations.Signature Rahul shah analysis.made is simple to understand.
VENKATAKRISHNAN. R
Oct 30, 2020well explained .. very good sir please come out with more stories like this all the best
Russy Master
Nov 4, 2020The Q2 2021 results should tell us whether and how soon will TaMo come out of the red, and given the more competitive and complex scenario (JLR aspect), how long will it take to reach the assumed 33 to 34 EPS mark.