Rakesh Jhunjhunwala’s Success Story : Rakesh Jhunjhunwala’s net worth is $3.1 billion, which is equivalent to approximately Rs 19,000 crores, according to the most recent Forbes statistics. So, how did an ordinary man from Mumbai become one of the most successful stock investors in Indian history with just Rs 5,000? This is what we’ll be discussing today.
Early Life of Rakesh Jhunjhunwala :
Rakesh Jhunjhunwala, widely known as the “Warren Buffett of India” or “Big Bull,” was born on July 5, 1960, in Mumbai to a Marwadi family. Radheshyamji Jhunjhunwala, his father, was an Income Tax Officer. Urmila Jhunjhunwala, his mother, was a homemaker, and he had two siblings.
Rakesh Jhunjhunwala has always been fascinated by the stock market. His father used to bring it up with their friends all the time. As a result, he once asked his father whether he might pursue a career in the stock market. His father, however, disapproved of his plan and advised him to first complete his studies and obtain a college diploma. Rakesh Jhunjhunwala earned his chartered accountant designation in 1985 after graduating from Sydenham College.
Rakesh asked his father the same question after graduating from college. His father informed him that he could follow any job he wanted, but that he couldn’t approach any of his father’s acquaintances for money. This was a significant problem for him. He was about to enter the stock market with no funds.
He was, nevertheless, a risk-taker from the outset. He borrowed money from his brother’s clients and promised to repay it at a hefty interest rate.
Entering the realm of the stock market:
In 1985, Mr Rakesh Jhunjhunwala invested Rs 5,000 in the stock market. The Sensex stood at 150 points at the moment (currently Sensex is hovering at 52,000 points).
Nonetheless, Rakesh Jhunjhunwala was able to obtain Rs 2.5 lakhs from one of his brother’s clients by promising better returns than fixed deposits.
In 1986, Rakesh Jhunjhunwala made his first significant profit of Rs 0.5 million. He purchased 5,000 shares of Tata Tea for Rs 43, and it was selling at Rs 143 three months later. He profited more than three times over by selling Tata tea stocks.
In the next years. Rakesh Jhunjhunwala made a lot of money through stocks. He made Rs 20-25 lakhs between 1986 and 1989. His second major investment was in Sesa Goa, which he purchased for Rs 28 and subsequently raised his stake to Rs 35. The shares quickly recovered to Rs 65.
Rakesh Jhunjhunwala‘s portfolio includes the following multi-bagger stocks:
Rakesh Jhunjhunwala is the CEO of RARE Enterprises, a privately held stock trading business. The name is a combination of his first two initials and those of his wife, Mrs Rekha Jhunjhunwala.
Rakesh Jhunjhunwala has invested in a number of multi-bagger stocks throughout the course of his long career in the stock market.
Rakesh Jhunjhunwala purchased ‘Titan Company Limited’ in 2002-03 at an average price of Rs 3 and it is presently selling at a price of Rs 1719. He owns more than 7.5 crore shares of Titan. He holds an ‘overall’ stake in the firm of 8.45 per cent.
He invested in LUPIN in 2006, with an average buying price of Rs 150. LUPIN is now selling at Rs 1148. CRISIL, PRAJ IND, Aurobindo Pharma, NCC, and a few other multi-baggers are in Rakesh Jhunjhunwala’s portfolio.
Rakesh Jhunjhunwala’s amazing facts:
1. Rakesh Jhunjhunwala made Rs 5000 Cr from Rs 5000 in the stock market in 30 years.
2. According to Forbes magazine, he is the 54th richest person in India, with a net worth of $3.1 billion, or more than Rs 19,000 crores.
3. He is the producer of the film “English Vinghlish” and a huge lover of Bollywood.
4. As a result of his excellent analytical skills and knowledge of the Indian stock market. He is well recognised and acknowledged as the Warren Buffet of India or the King of the Bull Market.
5. He is a natural foodie who enjoys Chinese and street cuisine as well as watching cooking shows on television.
6. He is a humanitarian as well. He gave up a quarter of his fortune to charity.
7. Rakesh Jhunjhunwala is regarded as one of the Indian stock market’s masterminds, having amassed Rs. 5000 crore from Rs. 5000 in under 30 years.
8. He is the founder and chairman of Hungama Media and Aptech.
9. He is in the midst of constructing an eye facility in Navi Mumbai that will provide 15,000 free eye operations.
Most recent Stock Portfolio (Sept 19):
The following are the most recent equities with the highest weightage in Rakesh Jhunjhunwala’s portfolio (the table is up to date until September 2019):
|Stock Name||Last Trading Price (Rs)||Quantity Held||Holding Percent||Holding Value (Rs.)|
|Titan Company Ltd.||1159.05||5,77,51,220||6.51%||6,693.7 Cr|
|Crisil Ltd.||1789.8||39,65,000||5.48%||709.7 Cr|
|Escorts Ltd.||622.65||1,00,00,000||8.16%||622.7 Cr|
|Lupin Ltd.||770.6||70,70,605||1.56%||544.9 Cr|
|Federal Bank Ltd.||86.7||6,07,21,060||3.11%||526.5 Cr|
|Delta Corp Ltd.||209.1||2,00,00,000||7.38%||418.2 Cr|
|NCC Ltd.||54||6,23,33,266||10.38%||336.6 Cr|
|Rallis India Ltd.||172.6||1,89,80,820||9.76%||327.6 Cr|
|VIP Industries Ltd.||422.75||75,00,400||5.31%||317.1 Cr|
|Jubilant Life Sciences Ltd.||539.5||55,00,000||3.45%||296.7 Cr|
Mr Rakesh Jhunjhunwala has always been a risk-taker. He is a down-to-earth individual who is also a philanthropist. An ordinary youngster from a Marwadi household succeeded in his ambitions. “Never forget that money is a means to a goal, not an end in itself,” says Rakesh Jhunjhunwala to everybody.
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