Jobaaj Stories
In this article of Jobaaj Stories, we illustrate the glorious career of CA Rakesh Jhunjhunwala, a business magnate, a professional investor, and not-widely-known, but also a Chartered Accountant.
But what he is most commonly known as in the whole country, is the term, “The Big Bull”. (It's a stock market thing)
Let's delve into the life of this Bull then,
The Journey to a Life of Investing
As a kid, Rakesh was led to the world of the stock market by his father, as he frequently used to overhear his father talking with his friends about the stock market. It was that which piqued his interest in the world of stocks. It was also his father who advised him to follow newspapers to gain information on stock trends because news often influences the fluctuations of the stock market.
It became an express wish for Rakesh to invest in the stock market but his father advised him to first get a college degree and so he graduated from Sydenham College in 1985 and thereafter pursued to become a CA.
It was after graduation that he finally got permission from his father to pursue a career in the stock market on the condition that he has to start from scratch and he won't be getting any monetary help from his family.
Entering the World of the Stock Market
Mr. Rakesh Jhunjhunwala entered the stock market in 1985 when the Sensex was at 150 points. He had a meager Rs 5000 at the time. It is worth noting that currently, Sensex stands at 50000 points.
Nevertheless, he was soon able to get one of his brother's clients to invest Rs 2.5 lakhs by promising him a higher return than that of fixed deposits.
His first big profit was Rs 0.5 million when in 1986, he bought 5,000 shares of Tata Tea at Rs 43, and within 3 months it was trading at Rks 143. He made a profit of more than 3 times from that trade.
In the leading years, he made a number of good profits from stock trades. He earned a whopping 20-25 lakhs in profit in the years between 1986-1989. His next major investment was Sesa Goa which he bought at Rs 28. Soon the stack rallied to Rs 65.
Multi-baggers in Rakesh Jhunjhunwala's Portfolio
Rakesh Jhunjhunwala owns and manages a privately owned stock-trading firm called RARE Enterprises. The name is derived from the first two initials of his and his wife's name.
During his extensive career in the stock market, he invested in numerous multi-bagger stocks.
In the year 2002-2003, he bought Titan Company Limited at an average price of Rs 3, and currently, it is trading at a price of Rs 1463. Rakesh holds over 7.5 crore shares of the company and has an overall holding of 8.45% in the Titan company.
In the year 2006, he also invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 1061. CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc are some other multi-baggers in Rakesh Jhunjhunwala's portfolio.
Quick Fact: Not only is Rakesh a member of the board of directors of big companies like Prime Focus Ltd, Geojit , BNP Paribas financial services, Praj Industries, Concord Biotech, etc, but he is also a movie producer has produced movies like 'English-Vinglish', 'Shamitabh', and 'Ki and Ka'. He is also the chairman of Hungama Digital media entertainment Pvt Ltd.
Stock Market Philosophy by Rakesh Jhunjhunwala
Rakesh Jhunjhunwala considers himself to be both a trader and a long-term investor. This is exemplified by this excerpt from his interview with Economic Times:
“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.”
Moreover, Rakesh Jhunjhunwala has a bullish approach toward India's growing economy and its success as an emerging global market.
It can be said that Rakesh Jhunjhunwala's strategies can be a good example for both short and long-term investors. In the end, this quote by Mr. Jhunjhunwala captures perfectly the passion that goes into investing.
“Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.”
His Legacy and Last days
The indomitable Veteran investor took his last breath at the age of 62 and died on August 14, 2022, due to cardiac arrest.
As of Forbes' latest valuation, Jhunjhunwala's net worth was $5.8 billion. In addition to launching an airline, Akasa, he invested in multiple startups NAZARA TECH, FULFILL HEALTHCARE, IIFL ETC. Apart from his stock portfolio worth Rs 31,833.70 crore, he was the largest individual investor on Dalal Street.
His inspiring lines are like gems from his long 37 years of experience in the stock market.
“I am not afraid to make a mistake. I only want to make one which I can afford, so I can live to make another one”
This article is brought to you by Jobaaj Stories in association with Jobaaj.com.
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