Who is the Rakesh Jhunjhunwala and How they created worth of Rs. 15000 Crore from share market?

Who is the Rakesh Jhunjhunwala and How they created worth of Rs. 15000 Crore from share market?

Rakesh Jhunjhunwala

Rakesh Jhunjhunwala, the name that needs no introduction. The legendary investor who is known as the Warren Buffet of India”. Let us check out the success story of Rakesh Jhunjhunwala and his journey from Rs-5000 to Rs-8000 Crore.

Rakesh Jhunjhunwala was born on 5th July 1960. His father was an Income tax officer. His father was interested in stocks and used to discuss the stock market with his friends. Rakesh as a child would listen to them. Once he asked his father why the price fluctuates. He told him to check the news, it makes the price to fluctuates. This was his first lesson of the stocks market.

He got fascinated by stocks and found it interesting. He expressed his wish to get into the stock market with his father. He told him to do whatever he wanted in life but at least get professionally qualified. Rakesh then took up chartered accountancy and completed his CA in 1985.

After completing the CA he told his father that he wanted to go in the stock market. His father reacted by telling not to ask him or any of his friends for money. Earn and trade with your money. He started his career in 1985 when the BSE Sensex was at 150. He made his first big profit of Rs 0.5 million in 1986 when he sold 5,000 shares of Tata Tea at a price of Rs 143 which he had purchased for Rs 43 a share just 3 months prior.

Between 1986 and 1989 he earned Rs 20–2.5 million. His first major successful bet was iron mining company Sesa Goa(now Sesa Sterlite). He bought 400,000 shares of Sesa Goa in forwarding trading, worth Rs 10 million, and sold about 250,000 shares at Rs 60–65 and another 100,000 at Rs 150–175. The price rose to Rs 2200 and he sold some shares.

Jhunjhunwala bought 6 crore shares of Titan in 2002-03 at an average price of around Rs 3. The stock is currently trading at 1180 Rs level and his investment value is now 7080 crore, which made around 35 lac per hour for him.

In 2006 he bought lupin around 150 Rs which is now trading at 1100 levels. He bought a crisis of around 200-300 levels which is now at 1800. Likewise, there are so many stocks in his portfolio that made huge money for him.

His Philosophy

Rakesh Jhunjhunwala believes in the power of mistakes. He says it’s the mistakes that made him learn and become a better investor. he says. “If you don’t believe the markets are supreme, you will never admit that it was your mistake. If you don’t admit that it is your mistake, you will never learn.

To succeed in the stock market, not only is the ability to learn from one’s mistakes vital, he says, but also to blame only oneself for it. “I don’t blame the promoters of companies. I blame myself. The promoter is what he is. I have to recognize that. He is not what I expect him to be.” Jhunjhunwala says what he has learned in life is to try and earn money in trading and to invest it in stocks.

His believe in India’s Growth story

Rakesh Jhunjhunwala

Jhunjhunwala says he is bullish on the country growth since he entered the stock market. He insists the Indian economy will grow by 9-10 percent, though that may need a transition of two to three years. Jhunjhunwala’s thesis is that Indians will save $1 trillion a year, and even if 10 percent of that money—$100 billion —flows into the markets, there will be a tsunami on the bourses. “So I remain bullish that, for the next 20 years, we could see a bull run like the one Wall Street had from 1987.”

As per Forbes, he is the 48th richest person in India, with net worth of USD 3 billion (as of 1 oct 2019).

Jhunjhunwala is the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd and sits on the board of directors of various Indian companies such as Prime Focus Limited, Geojit Financial Services, Bilcare Limited, Praj Industries Limited, Provogue India Limited, Concord Biotech Limited, Innovasynth Technologies (I) Limited, Mid Day Multimedia Limited, Nagarjuna Construction Company Limited, Viceroy Hotels Limited and Tops Security Limited. He is popularly referred to as the “Warren Buffett of India” and the “King of Bull Market”.

Jhunjhunwala’s stocks fell by up to 30% in December 2011. He recovered his losses in February 2012. These ups and downs forced him to reduce his vulnerability by trimming his portfolio to one-third. His attempts to divest his Aptech stake had no takers.

Jhunjhunwala invested ₹26 Crores ($4.6 Million) in A2Z Maintenance increasing his stake in the company by 3.57%, upping his stake in the company to 23.2%.

He is also credited as a producer of the 2016 movie Ki & Ka.

The first big profit of Rakesh Jhunjhunwala was Rs 0.5 million in 1986. In between 1986-89, he earned almost Rs 20-25 lakh profit.