“I am not afraid of making mistakes. But my mistakes were those that I could afford. That’s very important: mistakes will happen but you must ensure that you keep them within limits you can afford,” a quote by Rakesh Jhunjhunwala, an Indian billionaire investor, stock trader and Chartered Accountant.
He noted that risk-taking is essential for growth, but it must not be reckless. Jhunjhunwala’s strategy focused on buying right, sitting tight, and holding companies for the long term, rather than trying to time the market perfectly.
Who is Rakesh Jhunjhunwala
Rakesh Jhunjhunwala (1960-2022) was a legendary Indian billionaire investor and stock trader often referred to as the “Big Bull” of India or the “Indian Warren Buffett”. He was a qualified Chartered Accountant who transformed a modest ₹5,000 investment in 1985 into a multibillion-dollar portfolio.
At the time of his passing in August 2022, his net worth was estimated at $5.80 billion, making him one of the richest people in India. Shortly before his death, he co-founded Akasa Air, a low-cost Indian airline.
His portfolio was famous for long-term “multibagger” stocks, most notably Titan Company, where his early bet grew 400x over two decades.
He was a steadfast optimist regarding India’s economic growth, famously stating, “The future of India is brighter than the sun”.
When was this quote said by Rakesh Jhunjhunwala
Rakesh Jhunjhunwala made this specific remark during a high-profile interview with actress Alia Bhatt in October 2017, around the time of Diwali.
In the conversation, he discussed his philosophy on risk and investment, emphasising that while mistakes are inevitable in the stock market, they must be manageable enough to allow for continued survival.
What does this quote mean?
Jhunjhunwala frequently stated, “Only make a mistake you can afford so that you may live to make another one”. He believed investors must be humble enough to accept when they are wrong, famously saying, “I reserve the right to be wrong”. He stressed keeping losses within limits that do not compromise one’s long-term financial stamina.”
