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Recalling The Rollercoaster Ride of Ace Investor, Rakesh Jhunjhunwala

From ‘Big Bull’ to India’s Warren Buffet’, let’s relive his life

Ace investor Mr Rakesh Jhunjhunwala had many names to be called, from ’big bull’ to being India’s own Warren Buffet’s sudden demises saddened everyone, especially the stock market investors, allegedly due to kidney failure. The entire nation mourned such a great loss as they paid their tribute to this convivial personality. The most legendary investor India has had gone at the age of 62 on 14th of august 2022. Shri Jhunjhunwala inspired an entire generation to believe in our equity markets with his brilliant views. Let’s take a rollercoaster ride on his tremendous journey from 1960 to 2022.

Background:

Rakesh Jhunjhunwala was born on 5th July 1960 in ‘City of Dreams’ Mumbai. His father was an Indian Tax officer in a middle-class family. Like any other child, Mr Jhunjhunwala, too was curious. Since his childhood he had loved to know about the stock market. One day his inquisitive mind takes a forward step and ask his father why the stock market price fluctuates daily? In his response, Mr Jhunjhunwala’s father suggested him to read newspapers as it’s the news that makes the price of stocks fluctuate. Additionally, Rakesh Jhunjhunwala expressed his desire to work in the stock market. But his father advised him to first pursue a graduate degree from a university. As a chartered accountant, Rakesh Jhunjhunwala earned his degree from Sydenham College in 1985. He again spoke with his father about his desire to become an investor in the stock market after college. His father answered that he was free to pursue any profession. But he also said that he wasn’t going to give him any cash and that he couldn’t ask any of his father’s acquaintances for the start-up money. And in this way, ‘Big bulls’ journey started with these baby steps.

Stock Market World:

India’s Warren Buffet began his career in the Indian stock market in 1985 with just 5,000 rupees and has since grown to be worth over 40,000 crores. He was a bear at the beginning of his career. In 1986, Rakesh Jhunjhunwala paid Rs.43 per share for 5000 shares of Tata Tea. Following his purchase, Tata Tea’s share price increased dramatically in just three months, from Rs.43 to about Rs.143. Jhunjhunwala made his first significant gain from the stock market when he sold roughly Rs.25 lakh worth of Tata Tea shares over the course of the following three years. By selling the Tata tea stocks, he realised a profit that was more than three times what he had invested. In the upcoming years, he generated a lot of profitable stock trades. Between 1986-89, he earned Rs.20-25 lakhs. Sesa Goa was his subsequent significant investment, which he initially purchased for Rs.28 and then increased his investment to Rs.35. Soon, the stock rallied to Rs.65.

Rakesh Jhunjhunwala invested in a number of multi-bagger stocks, In the year 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 holds 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 Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC etc. Recently once again he made headlines for making 50 crores in just 8 days. In September 2021 quarter Mr Jhunjhunwala entered in three stocks Nalso, Canara Bank, and Indiabulls Real Estate. In month of December he entered in another two stocks Star Health and Allied Insurance and Metro Brands. Prior to it, Steel Authority of India Limited or SAIL was another new company in which Jhunjhunwala bought a fresh stake between April to June 2021 quarter.  Buy when others sell and sell when others buy’; stock market mantra by Jhunjhunwala’

Jhunjhunwala’s Enterprise and Airlines:

In 1987, Rakesh Radheshyam Jhunjhunwala married Rekha Jhunjhunwala from Andheri, who is also a stock market investor. In 2003, Rakesh Jhunjhunwala established his own stock trading firm Rare Enterprises known to derive its name from the first two initials of his and his wife Rekha’s name which is ‘Ra’ from Rakesh; and ‘Re’ from Rekha.

Akasa Air, a brand of SNV Aviation Private Limited, is an Indian low-cost airline headquartered in Mumbai. Akasa airlines were founded by Indian billionaire Rakesh Jhunjhunwala. The airline began commercial operation with its first flight service from Mumbai to Ahmedabad on 7 August 2022, after receiving its first Boeing 737 MAX aircraft.

Mr Jhujhunwala was not only the board of directors of these following companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc. But also a movie producer of English-Vinglish, Shamitabh and Ki & Ka. With that he is the chairman of Hungama Digital media entertainment Pvt Ltd. At the time of his death, he had an estimated net worth of $5.8 billion, making him the 438th richest person in the world.

Indian stock market gains remarkable progress under the foresightedness of Mr Jhunjhunwala. He was one Jovial personality with a kind heart and full of life.

An Indian billionaire, business tycoon, stock trader and investor leaves too soon, but his exceptional ideas towards the stock market were always helpful for the newbie.

Inspirit quotes by Rakesh Jhunjhunwala:

  • “Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.”
  •  “Be paranoid of success-never take it for granted. Realize success can be temporary and transient.”