Master Investors And Their Masterstrokes

What are the common symbols of investment? Things that are common in all the investment related communications like advertisements, videos, billboards, etc.? Come to think of it, mostly you see a sapling or a banyan tree, right? The reason these symbols are used is to convey the fact that investment is a long term affair. The interpretation one can draw from these symbols is that if one invests regularly one's sapling of investment will turn into a banyan tree. Sounds good, doesn't it? But the fact that people usually undermine is - time. To get the best results of your investment you have to give it plenty of time to grow. Only long-term investment has the potential to create enormous wealth.

Let's take a look at those famous investors who have cracked the code of success. Let's analyse the way they went about investing, waiting and preparing for their master-strokes.

A. Warren Buffett

When you think of value investing, one name that instantly pops into in your mind is - Warren Buffett. Such is his command on the investment matters that he rarely makes a mistake. Freddie Mac is considered one of his smartest investment. In 1988, Warren Buffett entered Freddie Mac with a lot of conviction. He invested $108 million in this mortgage insurance firm backed by the government.

Mr. Buffett Hits It Out Of The Park!

When Mr Buffett entered this stock it was $4 apiece. He held this stock for 10 years, and by that time Freddie Mac's shares had touched $70, giving Buffett's portfolio a multibagger boost. But it's not just that he identified the potential in this stock, that he did, but how he exited this stock is more telling of Buffett's style of investing.

In 2000, Buffett announced that he had several meetings with Freddie Mac's CEO. In the course of these meetings, Buffett sensed that the plans the CEO has for future are not in the interest of the company. As Mr Buffett via his company Berkshire sprang into action, within a year he dumped his entire stake in Freddie Mac. Warren Buffett's prophecy came true as in 2003 reports came out that Freddie Mac had misreported its earnings on the regular basis. The CEO was ousted. In the financial crisis of 2008, Freddie Mac got into such trouble that the government had to bail the company out. This trade can certainly be called Warren Buffett's masterstroke

B. Rakesh Jhunjhunwala

There is a reason why people call Rakesh Jhunjhunwala a Warren Buffett of India. His investment philosophy has uncanny similarities with that of Warren Buffett. He holds such authority in stock investment that 'Rakesh Jhunjhunwala stock tip' is one of the highest searched items in India.

Rakesh Jhunjhunwala, to his credit, has many multibagger stocks which speak a lot about hs vision and astuteness of identifying good stocks. But one stock which elevates Rakesh Jhunjhunwala's portfolio to a different level is - Titan.

Hold It Long

In 2002-03 Rakesh Jhunjhunwala bought 6 crore shares of Titan, a watch and jewellery manufacturing company. He bought the stock at an average price of Rs. 3 apiece. Titan is currently trading at Rs. 438 which has swelled Jhunjhunwala's investment value in Titan more than a couple of thousand crores. Titan's stock is the shining jewel of Rakesh Jhunjhunwala's holdings for more than 15 years. In April 2015, Jhunjhunwala sold 1.48 per cent out of his 6.94 percent stake in the company.