The Success Story of Big Bull CA Rakesh Jhunjhunwala – 5 thousands Rupees to 46000 Crores

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We are Sharing With You The Success Story of Big Bull CA Rakesh Jhunjhunwala – 5 thousands Rupees to 46000 Crores .

CA STUDY NOTES
Rakesh Jhunjhunwala (5 July 1960 – 14 August 2022)
  • Investor with a Midas touch, Rakesh Jhunjhunwala is often referred to as India’s Warren Buffett.
  • Son of an income tax officer, Jhunjhunwala started dabbling in stocks while still in college.
  • He began investing with $100 in 1985 when the Bombay Stock Exchange Index was at 150; it now trades over 60,000.
  • His most valuable listed holding is watch and jewellery maker Titan, part of the Tata conglomerate.
  • Jhunjhunwala’s early bets on Star Health and Allied Insurance and Metro Brands paid off when both companies listed in 2021.
Wealth History
HOVER TO REVEAL NET WORTH BY YEAR

Forbes Lists

#438 Billionaires (2022)

#36 India’s Richest (2021)

  1. Table of Content:
  2. Forbes Lists
  3. — Childhood
  4. — Entering into the World of stock market
  5. — The first big profit of Rakesh Jhunjhunwala
  6. — Multi-baggers stocks in Rakesh Jhunjhunwala’s Portfolio
  7. — Jhunjhunwala was the chairman & Board Member of Following Comapnies
  8. — Akasa Air
  9. — Controversy
  10. — Death

According to the latest updates on Forbes, the net worth of Rakesh Jhunjhunwala is $5.8 Billion, which is equivalent to over Rs 46,000 Crores. So, how did a regular guy from Mumbai with just Rs 5,000 became one of the most successful stock investors in Indian history? This is what we are going to discuss today.

— Childhood

Childhood Picture of RJ

Rakesh Jhunjhunwala, also known as the ‘big bull’ or ‘Indian Warren Buffett’ was born on 5th July 1960 in Mumbai. His father was an Income tax officer.

Rakesh Jhunjhunwala consistently used to hear his father discussing the stock market with his friends. As he was very curious about stocks, so once he asked his father why the stock price fluctuates daily? His father suggested him to read newspapers as its the news that makes the price of stocks fluctuate.

Rakesh Jhunjhunwala also expressed his wish to pursue a career in the stock market. However, his father suggested him to first get a graduate degree from a college. Rakesh Jhunjhunwala graduated from Sydenham College in 1985 & Also Get Degree as a chartered accountant.

After graduation, he again discussed his career goal as a stock market investor with his father. To this, his father replied that he is permitted to pursue any career. However, he also added that he’s not going to give him any money, nor he can ask for the initial capital from any of his father’s friends.

— Entering into the World of stock market

Mr Rakesh Jhunjhunwala entered the stock market with just Rs 5,000 in 1985. At that time, Sensex was at 150 points (currently Sensex is hovering at 58,500 points).

Nevertheless, soon Rakesh Jhunjhunwala was able to take an amount of Rs 2.5 lakhs from one of his brother’s clients by promising to give higher returns compared to the fixed deposits.

Rakesh Jhunjhunwala’s first big profit was Rs 0.5 million in 1986. He bought 5,000 shares of Tata Tea at Rs 43 and within 3 months it was trading at Rs 143. He made a profit of over 3 times by selling the stocks of Tata tea.

In the next few years. Rakesh Jhunjhunwala made a number of good profits from stocks. Between 1986-89, he earned Rs 20-25 lakhs. His next big investment was Sesa Goa, which he initially bought at Rs 28 and then increased his investment at Rs 35. Soon, the stock rallied to Rs 65.

— The first big profit of Rakesh Jhunjhunwala

The first big profit of Rakesh Jhunjhunwala was ₹5 lakh in 1986. Between 1986 and 1989, he earned almost ₹20-25 lakh profit.

As of 2021, his biggest investment was in Titan Company which is worth ₹7,294.8 crore.

— Multi-baggers stocks in Rakesh Jhunjhunwala’s Portfolio

Rakesh Jhunjhunwala manages a privately owned stock trading firm called ‘RARE Enterprises’. The name is derived from the first two initials of his name and his wife Mrs Rekha Jhunjhunwala’s name.

During his long career in the stock market, Rakesh Jhunjhunwala invested in a number of multi-bagger stocks.

In 2002-03, Rakesh Jhunjhunwala bought ‘Titan Company Limited’ at an average price of Rs 3 and currently it is trading at a price of Rs 2140. He is holding over 4.4 crore shares of titan company. He has an ‘overall’ holding of 5.1% in the company as of March 2022

In 2006, he invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 635. A few other multi-baggers in Rakesh Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.

 Jhunjhunwala was the chairman & Board Member of Following Comapnies

Besides being an active investor Jhunjhunwala was the chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd. and sat on the board of directors of 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.

— Akasa Air

Akasa Air is an Indian airline co-founded by Rakesh Jhunjhunwala and former Jet Airways CEO Vinay Dubey. The airline currently has 2 aircraft with additional order for 70 more aircraft and flies to 3 cities as of 9th Aug 2022

Ridgeway apartments

In 2013, Jhunjhunwala bought 6 of the 12 units of Ridgeway apartments at Malabar Hill from Standard Chartered bank for Rs 176 crore. Later in 2017 he bought the other 6 apartments in the building from HSBC bank for Rs 195 crore. In 2021 he commenced the construction of his new 70000 square feet 13 storey home after the demolition of the old building.


— Controversy

Rakesh Jhunjhunwala was investigated for insider trading. As of July 2021, the SEBI has settled the issue after a total payment of ₹35 crore from Jhunjhunwala and his associates. Jhunjhunwala paid ₹18 crore and his wife paid ₹3.2 crores.

— Death

On 14 August 2022, Rakesh felt some uneasiness in health, due to which he was rushed to Breach Candy Hospital in Mumbai. He died at around 6:30 later that morning. Doctors reported that he also suffered from kidney related problem and acute multiple organs failure. Indian Prime Minister Narendra Modi shared his condolence stating “Rakesh Jhunjhunwala was indomitable. Full of life, witty and insightful, he leaves behind an indelible contribution to the financial world. He was also very passionate about India’s progress. His passing away is saddening.”

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