Rakesh Jhunjhunwala has an estimated net worth of $5.8 billion, making him the 36th richest man in India
In this post, we are going to have a glance
through the journey of Rakesh Jhunjhunwala within the Indian stock exchange. He
was successful in creating a net worth of Rs 40,000 Crores by just a penny
amount of Rs 5,000. Let’s start.
Rakesh Jhunjhunwala also called the ‘Big Bull’
and ‘Indian Warren Buffett’ was born on 5th July 1960 in Mumbai. His father was
an Income tax officer. He consistently used to hear his father discussing the
securities market along with his friends. As per his interest in stocks, he
once asked his father why the stock price fluctuates daily? His father
suggested him read newspapers as it’s the capital stuff in the market which
makes the stocks fluctuate.
He also expressed his wish to pursue a career within the premises of the stock market. However, his father suggested him first get a graduate degree from some prestigious university and then pursue the dream. He graduated from Sydenham College in 1985 as a chartered accountant. After returning back, he again visited his father and discussed his dream goal of being a stock exchange investor. To this, his father replied that he's permitted to pursue any career. However, he also added that he’s not going to entertain him by giving any money, nor he can make a favor for the initial capital from any of his father’s friends.
Mr. Rakesh Jhunjhunwala entered the securities market with just Rs 5,000 in 1985. During that period, Sensex was just at the level of 150 points (currently Sensex is hovering at 58,500 points). His first big profit was Rs 0.5 million in 1986. Initially, he bought 5,000 shares of Tata Tea at just Rs 43, and within 3 months it was roaring at Rs 143. The bumper profit he made was nearly thrice the number of investments he made by selling the stocks of Tata tea. In the next few upcoming years. He made a variety of fine profits from stocks. Between 1986-89, he earned Rs 20-25 lakhs of pure profits. His next big investment was Sesa Goa, which he initially bought at Rs 28 then increased his investment with more quantities at Rs 35. Soon, the stock rallied to Rs 65.
The Big Bull manages a privately owned stock trading firm called ‘RARE Enterprises’. The name RARE is derived from the primary two initials of his name and his wife Mrs. Rekha Jhunjhunwala’s name. During his long career within the stock exchange, he invested in numerous multi-bagger stocks. In 2002-03, the Indian Stock Market King bought ‘Titan Company Limited’ a watch and jewelry maker, part of the Tata conglomerate at a mean price of Rs 3, and currently, it's trading for Rs 2140. he's holding over 4.4 crore shares of titan company. He has an ‘overall’ holding of 5.1% within the company as of March 2022.
In 2006, he invested in LUPIN and his average
price soared to Rs 150. Today, LUPIN is trading at Rs 635. Some other
multi-baggers in his portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC,
Titan Company, CRISIL, Tata Motors, Escorts, Fortis Healthcare, Nazara
Technologies, Jubilant Life, Rallis India, VIP Industries, and many more. He
also used to dabble in gold, Currency exchanges, and derivatives. In a recent
turn of events, Rakesh Jhunjhunwala yet again made headlines for creating 50
crores in mere 8 days – Read More
Quick Fact: Other than being on the board of directors of huge companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc, He is additionally a movie producer and has shown interest in film production. Some of the best productions are ‘English-Vinglish’, ‘Shamitabh’, ‘Ki and Ka’. He's also heading as the chairman of Hungama Digital media entertainment Pvt Ltd. too. Recently, He has also invested 260 Crore rupees in the Akasha Airlines company. He is the co-founder of the latest airline and owns 40% of the corporate, together with Aditya Ghosh, former President of Indigo who will have a 10 percent stake in Akasa Air.
He was currently extremely bullish on the long-term growth of the Indian Economy and also the Indian Equity Market. However, he was once a bear within the Harshad Mehta days and made plenty of cash by shorting stocks post-Harshad Mehta Scam 1992. He was a part of the Bear Cartel during that point together with other bears like Manu Manek and RK Damani.
He had pledged to give away 25 percent of the
wealth for charity purposes. Also, he contributed to the shelter for
cancer-affected children, AGASTYA International Foundation, and Arpan, an
entity that creates awareness among children about sexual exploitation. He has
also supported Ashoka University, Olympic Gold Quest, and Friends of Tribal
society. The eye hospital which could conduct 15000 eye surgeries for free is
under construction in Navi Mumbai.
“Short-term trading is for short-term gain.
Long-term trading is for long-term capital formation. Trading is what gives you
the capital to invest. My trading also helps my investing in the sense I use a
lot of technical analysis for trading at times. If the stock is overpriced, I
should sell but my trading skills tell me that the stock can remain overvalued
or get more overvalued. Hence, I hold on to my
investments. So, I think they complement each other in many ways but they
are two distinct compartments totally.”
(Source: Economic Times- The journey of
Rakesh Jhunjhunwala )
Further, he was extremely
bullish on India’s growing economy and its success as an emerging market.
Overall, his success story
is really inspiring for new and old investors. In the end, here’s a fantastic
quote by Rakesh Jhunjhunwala:
“Passionate investors always make money in
stock markets. You will never fail in any work if you do it with passion.” –
Rakesh Jhunjhunwala
1 Comments
Thanks for sharing Harsh.
ReplyDeletePost a Comment