“RAKESH JHUNJHUNWALA”, the epitome of success and the trading king who needs no introduction.
Rakesh Jhunjhunwala, a veteran Indian Billionaire Investor born on 5th July 1960 in Mumbai (Maharashtra) He is often known as ‘Indian Warren Buffett ‘or ‘Big Bull’. By profession, he is a Chartered Accountant. The man who stands out as a humble boy from a middle-class family to Forbes List of Billionaire in 2002. Success Story Of Rakesh Jhunjhunwala will inspire millions of investors. Let’s get into depth to understand his aura and his journey from nothing to everything.
EARLY LIFE:
During his childhood, he dreamt to be a pilot and then a journalist. As his father was an Income-tax Officer, he was keen to learn the ups and downs prevailing in the stock indices. Later, he discussed these topics with his friends to gather more knowledge.
Rakesh Jhunjhunwala was observant throughout the teachings about price fluctuations in the stock prices. Once he told his father about getting into the stock market, but his father asked him to get professionally qualified and advised him to earn and trade with his own money without getting any financial help from him. And then think about such options. After that, he completed his professional degree in CA and entered io the stock market in 1985.
CAREER:
Initially, he entered the streets of Bombay with a belief of “Hum Honge Kaamyab” with a small capital of Rs.5000.At that time BSE Sensex was at 150 points. Looking at the market conditions he realized that a hefty amount of capital is needed to participate in the stock market. So Rakesh Jhunjhunwala approached his brother and raised 1.5 million. He made his huge profit of Rs 0.5 million in 1986 when he sold 5,000 shares of Tata Tea for Rs 143 which he had purchased for Rs 43 a share. Within a short period with the recovery of the market, Rakesh Jhunjhunwala made a good profit in Tata Power, Sesa Goa, and Telco.
VENTURING INTO TRADING MARKET:
The trading king felt that only the stock market will not help him achieving big in life. So he moved into the trading sector. He thoroughly studied the market conditions and the basics of trading procedures. He bought 6 crore shares of Titan in 2002-03 at an average price of around Rs 3 which is now of Rs.390 and holds an investment value of 2100 crore. Currently, Rakesh Jhunjhunwala owns Rare Enterprises (An Asset Management firm). These stocks had generated a valuable return for him. There are a lot of stocks that made large sums of money for him such as Lupin, Titan, crisil, etc which constituted more than half of his total portfolio value. Rakesh Jhunjhunwala further made a lot of money in ACC during the Harshad Mehta phase going long. Also, he is the Chairman of Hungama Digital Media Entertainment and Aptech Limited. His current net worth is 300 Crore USD.
Ending his story with few lines quoted from his recent 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. “