Rakesh Jhunjhunwala is a business magnate from India. Rakesh Jhunjhunwala is also known as Midas (power of turning everything he touches to gold) businessman and often referred to as India’s Warren Buffet, the Big Bull, the Pied Piper of the Indian stock market, and so on. By profession, he is a chartered accountant and a trader. Though Jhunjhunwala hails from the middle-class Marwari family, he is the 48th richest man in the world, according to Forbes’ Rich List and he has a $4.3 billion net worth. So now the question is “How did Rakesh Jhunjhunwala make this money?” To answer you with this, here is a detailed article on Rakesh Jhunjhunwala’s portfolio and what investment principles he followed to become the big bull of the Indian stock market?
Who Is Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala is an Indian business magnate who was born on 5th July 1960 in Hyderabad, Telangana. However later his family was shifted to Maharashtra. Rakesh was raised in a Marwadi family in Bombay, where his father served as the Commissioner of Income Tax, Bombay. Jhunjhunwala completed his degree from the Institute of Chartered Accountants of India, but after earning his degree, he decided to dive into the Dalal street headfirst.
Currently, Jhunjhunwala is the chairman of Hungama Media and Aptech, as well as a board member of Viceroy Hotels, Concord Biotech, Provogue India, and Geojit Financial Services. As a partner in his wealth management company, Rare Enterprises, he manages his own portfolio.
Rakesh Jhunjhunwala Story
When Jhunjhunwala was in college, he began dabbling in the stock market. Jhunjhunwala began with a capital investment of Rs 5,000 in 1985. The capital had grown to Rs 11,000 crore by September 2018.
After hearing his father’s discussion about the stock market with his colleagues, Jhunjhunwala developed with an investment in the stock market. Jhunjhunwala quoted that his father advised him to glance at the newspaper on daily basis to check the stock market fluctuations and all the news related to the same. Though Jhunjhunwala’s father encouraged him to indulge in the stock market, he refused to lend money and asked not to borrow money from his friends.
However, Jhunjhunwala was a risk taker from the outset and this made him borrow money from his brother’s clients with the promise of returning the money with better returns than bank fixed deposits.
In 1986, he made his first significant profit when he purchased 5,000 shares of Tata Tea for Rs 43, and the stock grew to Rs 143 in three months. He made a return of more than three times his investment. He made between 20 and 25 lakh within three years.
Also, Jhunjhunwala has made many profitable investments in companies such as Titan, CRISIL, Sesa Goa, Praj Industries, Aurobindo Pharma, and NCC over the years.
Rakesh Jhunjhunwala Principles
Jhunjhunwala principles of investing are given below:
- Addressable opportunity
- Competitive ability
- Operating leverage and scalability, and
- The integrity of the management
Rakesh Jhunjhunwalas Top 10 Trading & Investments Commandments
The top 10 trading and investment commandments by Rakesh Jhunjhunwala are given below:
Rakesh Jhunjhunwala Family
Rakesh Jhunjhunwala was married to a stock market investor Rekha Jhunjhunwala in February 1987. The couple has three children: Nishtha, a daughter, and Aryaman and Aryavir, twin sons.
Rakesh Jhunjhunwala Investments or Company
RARE Enterprises, a privately held stock trading company, is managed by Jhunjhunwala. However few list of companies in which Jhunjhunwala has invested are given below:
- Aurobindo Pharma
- Praj Industries
- Aptech Limited
- Ion Exchange,
- Fortis Healthcare
- VIP Industries
- Geojit Financial Services
- Rallis India
- Jubilant Life Sciences and much more.
Rakesh Jhunjhunwala Scam
One of India’s biggest financial disasters was in the 1992 Financial & Securities Scam. As a member of the bear cartel, Rakesh Jhunjhunwala made a lot of money shorting stocks during the Harshad Mehta period.
Developed cartels dominated the market in the 1990s. Manu Manek, also known as the Black Cobra, was the leader of one such bear cartel. Radha Krishan Damani, Rakesh Jhunjhunwala, Ajay Kayan, and others were among his supporters. The Black Cobra cartel and Harshad Mehta fought a bloody war in the 1990s. Harshad Mehta was primarily a Bull who believed in the Market’s bullish logic.
Famous Rakesh Jhunjhunwala Quotes
Few famous quotes quoted by Rakesh Jhunjhunwala are given below:
You do not succeed without obsessionRakesh Jhunjhunwala
Markets are like women — always commanding, mysterious, unpredictable and volatileRakesh Jhunjhunwala
Growth comes out of chaosRakesh Jhunjhunwala
Build a fighting spirit — take the bad with the goodRakesh Jhunjhunwala
Prepare for losses. Losses are part and parcel of stock market investor lifeRakesh Jhunjhunwala
Always go against tide. Buy when others are selling and sell when others are buyingRakesh Jhunjhunwala
When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot thoseRakesh Jhunjhunwala
See the world as it is, rather than what you would like it to beRakesh Jhunjhunwala
The prettiest part of the stock is that it has to be cheap – the entry pointRakesh Jhunjhunwala
Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in itRakesh Jhunjhunwala
FAQs on Rakesh Jhunjhunwala
The frequently asked questions on Rakesh Jhunjhunwala are given below:
Q1. Who is the king of share market in India?
A. Rakesh Jhunjhunwala is known as the king of the share market in India.
Q2. What is the qualification of Rakesh Jhunjhunwala?
A. Jhunjhunwala has completed Chartered Accountant from the Institute of Chartered Accountants of India.
Q3. Where does the Rakesh Jhunjhunwala house locate?
A. Jhunjhunwala’s house is located in South Mumbai, India.
Q4. What is the Rakesh Jhunjhunwala net worth?
A. The net worth of Jhunjhunwala amounts to be 440 crores USD.
Q5. What are the Rakesh Jhunjhunwala stocks?
A. Rakesh Jhunjhunwala owns 37 stocks that have a net worth of Rs. 17,971.4 crore.
We hope this detailed article on Rakesh Jhunjhunwala is helpful. Feel free to share your feedback about this article in the comment box below.