Rakesh Jhunjhunwala

RAKESH JHUNJHUNWALA: THE BIG BULL OF THE STOCK MARKET

Business Success Stories

“Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.” – Rakesh Jhunjhunwala

Rakesh Jhunjhunwala, popularly known as the ‘Warren Buffett of India’ or “Big Bull’ was born on 5th July 1960 in a Marwari family in Mumbai. Jhunjhunwala was raised with two siblings. His father, who was in the Income Tax Department, is considered one of the major contributors to young Rakesh’s interest in the financial world. 

On the lighter side, exceptionally few people know this but Jhunjhunwala is additionally a persuasive identity in Bollywood. He has created several Bollywood movies as well, striking among them are English Vinglish. He is additionally media adroit and can be seen routinely on major business channels. 

ENTERING THE STOCK MARKET

Young Rakesh had in his heart the burning curiosity to understand money and how it flows within the economy. With just INR 5,000 to invest, Jhunjhunwala entered the stock market, when back in 1985, the Bombay Stock Exchange used to stand at just INR 150.

DAYS OF DOMINATION

Jhunjhunwala’s days of domination began a year after he entered the market. In 1986, he made his first big profit of half a million rupees, which he used to buy 5000 shares of Tata Tea. These shares, which were trading at INR 43 when Jhunjhunwala bought them, shot up to INR 143 within mere three months of their purchase. This gave him a massive profit margin. In the next few years, Jhunjhunwala made ample profits from stocks. Between 1986-89, he made two to three million. His next big investment was Sesa Goa, which was bought at Rs 28, and later, shot up to INR 65 in some time. 

This was merely a kickstart for the ‘King of Dalal Street’. How he succeeded to become one of the richest in India after coming from a humble middle-class background is an inspiration for all the middle-class youth. How he got listed in the Forbes list of billionaires, what sort of challenges he faced in traversing the distance between the middle class and the elite – these are some questions that intrigue everyone. His investments have seen a lot of stocks turning into multi-bagger. The world knows that Jhunjhunwala has also had his own shares of failures, but the fact that he bounced back each time he fell makes him the real ‘Big Bull’.

What sets Jhunjhunwala separated from a standard financial specialist is that he isn’t effectively frightened by short-term instability within the stock showcase. He is exceptionally cautious in examining the essentials of the company and until the essentials are intaglio, he doesn’t care whether the stock goes up or down. His logic is that over a period of time, a few stocks will underperform and a few will overperform but India’s development story has started and inevitably each quiet speculation will make money.   

WHO IS RAKESH JHUNJHUNWALA’S WIFE?

Rakesh Jhunjhunwala has been married to Rekha Jhunjhunwala since February 1987. The Jhunjhunwala couple has a daughter named Nishtha and twin sons, Aryaman and Aryavir. 

Rakesh Jhunjhunwala with wife

RARE ENTERPRISES

In 2003, Rakesh Jhunjhunwala started a privately owned stock trading firm called RARE Enterprises. The firm’s naming was based on the initials of Rakesh and his spouse (‘Ra’ from Rakesh and ‘Re’ from Rekha). This firm meant a lot for Jhunjhunwala and his business. Buying around 7.5 crore shares of Titan, and later seeing it rise to INR 817 made Jhunjhunwala a big success in the industry. He currently has an overall holding of 8.45% in Titan. A few other multi-baggers in Rakesh’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC, LUPIN, and the list goes on.

WHAT DID RAKESH JHUNJHUNWALA SAY ABOUT HARSHAD MEHTA?

Today’s Big Bull of India used to be a bear in Harshad Mehta’s days. He made a lot of money by shorting stocks after the Harshad Mehta Scam of 1992. In Jhunjhunwala’s own words, ‘market valuations were “incredulous” during Mehta’s time. So, had Mehta continued the scam for one or two months more, he would have anyway become bankrupt.

RAKESH JHUNJHUNWALA AND BOLLYWOOD

Jhunjhunwala is well-known for his love for Bollywood films. ‘English Vinglish’, a Bollywood movie starring Sri Devi was produced by him. He is also known for his love for food, especially Chinese cuisine.

HIS VIEWS ON BUDGET 2022

Rakesh has given a thumbs up to the budget presented this year by Nirmala Sitharaman, the Finance Minister of India. He said he is “extremely bullish” on growth in Indian markets. 

The government in the budget has announced setting up a target of Rs. 65,000 crore from disinvestment in 2022–23. To which he said that he expects tax revenue collections “to go through the roof.” He also said that he expects the fiscal deficit to be 1-1.5 percent lower than what the government has projected for this year. He further said tax revenue in the current fiscal will be 3-4 lakh crore higher than the budgeted estimate. “Improvements made by the government in tax laws and administration is now yielding fruit,” Rakesh added

Nirmala Sitharaman also announced a big jump of 35.4 percent in capital expenditure to fund infrastructure projects in 2022-23 as the Indian private sector, according to the government, holds the key to sustainable and speedy revival. 

To this Jhunjhunwala said, The private sector CAPEX is going to see a big surge. The private sector is ready to invest… We are very-well placed.” 

SUMMING UP

Rakesh Jhunjhunwala’s success story is an inspiration for all investors, be it new or old. His lines “Hold on to a stock only if will give returns and not become emotionally attached to it.” will always stay relevant and pertinent to the stock market.  

Also Read: Success Story of Warren Buffett

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