Interesting to see India’s most successful Equity investor give priority to Realty
“One piece of advice I will give to every young Indian is that the most difficult thing in urban India is housing. So, the first thing that you should do is try and buy a house. That gives a great sense of security,” he says.
He feels that the youth does not have its priorities in place, and does not grant enough importance to owning property, which is a long-term security measure. “The young generation often does not plan, but having your own house is very important, as it gives a great sense of security”-said Rakesh Jhunjhunwala
6 replies on “Strange advice from Rakesh Jhunjhunwala”
I guess he is pitching for DHFL 🙂
Nothing strange or unusual about this. In fact, every body must first invest in a house or a dwelling unit for shelter. Remember Roti, Kapda and Makaan. This should be the wise advice and wise decision for a person.
I also feel that being in a country where sense of security required, one needs to prioritise housing over other things.
It is not a strange advice. He never mentioned one should own multiple houses. His belief in equities is intact. But one should have home first – That’s what he is trying to say. Even other veterans like Vijay Kedia advocated to have home first in his IIMB speech.
Out of his mother’s compulsion , sold CRISIL and bought a flat in MALABAR HILL in 2005.
” Sold Crisil shares in 2005 for Rs 27 crore to buy a flat at Malabar Hill in Mumbai. if remained invested, shares would be worth Rs 600 crore in 2015. The flat, on the other hand, was only worth Rs 65 crore ” – as said by RJ
RJ told this many times, it is not new. Citing the Malabar Hills-Crisil example is not logical as an exception never proves the rule.
Life Insurance and medical insurance give almost zero return if do not use, Still, we buy. Owning a house gives a sense of security which is not comparable.