When I was a child, I used to play 'Chess' with my grandfather. And my favorite strategy was to mimic his moves. I enjoyed watching my grandpa taking a lot of time to decide his next move and on the other hand, I just copied what he did earlier.
Many a time, this strategy worked for a long part of the game. However, in the end, I had to come up with my own steps, otherwise, I would have lost the games. The point was that I was always a step behind. And if you want to be successful, then you have to think ahead, instead of clinching to the back.
The same is applicable to the share market. If you keep copying the portfolio's of the big players, you won't be able to keep winning in the long term.
Here are the few reasons why it's not a good strategy to blindly invest in the shares of ace investors like Rakesh Jhunjhunwala:
1. You both do not have the same financial situation. The big investors can easily remain invested in that stock for a long time say 5-10 years. On the other hand, you might need raise fund sometimes in hurryto buy a new home, pay for children's school, emergency fund etc. Exiting from stocks in such situation may lead you to book heavy losses.
2. Ace investors can make mistakes: The big investors are also humans and capable of making mistakes. However, they can afford the losses as they have planned everything. But can you afford that loss?
3. You do not know their exit strategy: You may copy their portfolio but how are you going to understand their exit strategy? It's foolish to enter in a stock without having an exit strategy.
4. Keeping tabs on their investment is tough: One busy week and you might never know when these big investors left that stock. It's difficult to precisely copy the actions of these investors.
Overall, theoretically, it sounds good to mimic the portfolio of big investors in the share market. However, in practical, it's really tough. A retail investor cannot match the resources and opportunities available to these investors.
The best you can do it to keep aneye on the investments of these big investors and then make your own investment strategy for that stock.
I hope it helps. Happy Investing.