Rakesh Jhunjhunwala Success Story- Rs 5,000 to Rs 19,000 Crores!!

Rakesh Jhunjhunwala success story: According to the latest updates on Forbes (14 Feb 2018), the net worth of Rakesh Jhunjhunwala is $3.1 Billion, which is equivalent to over Rs 19,000 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.

In this post, we are going to walk you through the journey of Rakesh Jhunjhunwala in the Indian stock market. How he made over Rs 19,000 Crores starting from just Rs 5,000. Let’s get started.

Rakesh Jhunjhunwala success story

— Childhood

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 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 to 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 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 the initial capital from any of his father’s friends.

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— Entering the stock market world

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 35,000 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.

Rakesh Jhunjhunwala success story

— 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.

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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 817. He is holding over 7.5 crore shares of titan company. He has an ‘overall’ holding of 8.45% in the company.

In 2006, he invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 822.20. A few other multi-baggers in Rakesh Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.

Quick Fact: Apart from being in the board of directors of big companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc, Rakesh Jhunjhunwala is also a movie producer. He has produced movies like ‘English-Vinglish’, ‘Shamitabh’, ‘Ki and Ka’. He is the chairman of Hungama Digital media entertainment Pvt Ltd.

Also read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

— Latest Stock Portfolio (Sept 19)

Here are the latest stocks with the most weightage in Rakesh Jhunjhunwala’s Portfolio (the table is updated until September 2019):

Stock NameLast Trading Price (Rs)Quantity HeldHolding PercentHolding Value (Rs.)
Titan Company Ltd.1159.055,77,51,2206.51%6,693.7 Cr
Crisil Ltd.1789.839,65,0005.48%709.7 Cr
Escorts Ltd.622.651,00,00,0008.16%622.7 Cr
Lupin Ltd.770.670,70,6051.56%544.9 Cr
Federal Bank Ltd.86.76,07,21,0603.11%526.5 Cr
Delta Corp Ltd.209.12,00,00,0007.38%418.2 Cr
NCC Ltd.546,23,33,26610.38%336.6 Cr
Rallis India Ltd.172.61,89,80,8209.76%327.6 Cr
VIP Industries Ltd.422.7575,00,4005.31%317.1 Cr
Jubilant Life Sciences Ltd.539.555,00,0003.45%296.7 Cr
Multi Commodity Exchange of India Ltd.1158.5520,00,0003.92%231.7 Cr
Karur Vysya Bank Ltd.59.953,36,33,5164.21%201.6 Cr
Fortis Healthcare Ltd.137.61,25,00,0001.66%172 Cr
Aptech Ltd.168.1596,68,84024.24%162.6 Cr
Agro Tech Foods Ltd.608.420,03,2598.22%121.9 Cr
Edelweiss Financial Services Ltd.115.71,00,00,0001.07%115.7 Cr
Spicejet Ltd.99.41,00,00,0001.67%99.4 Cr

Also read: How to find where the Big Players are Investing in the Market?

— Rakesh Jhunjhunwala Stock Market Philosophy

Rakesh Jhunjhunwala considers himself as both a trader and a long-term investor. Here’s a quote 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.”

(Source: Economic Times- The journey of Rakesh Jhunjhunwala )

Further, Rakesh Jhunjhunwala is extremely bullish towards India’s growing economy and its success as an emerging market.

Overall, Rakesh Jhunjhunwala’s success story is really inspiring for new and old investors. In the end, here’s an amazing quote by Rakesh Jhunjhunwala:

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

That’s all for the article. Let me know what do you think of Rakesh Jhunjhunwala’s success story in the comment section below. HappyInvesting

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Comments
  • I really inspired a lot. for so many months i was thinking to invest in the stock market. yes of course Rakesh Jhunjhunwala is one who inspired me to enter into the stock market. you’ve done a good job by posting this article. thanks for nice information

  • Suneel singh says:

    I am not an accountant but when i read the story of jhunjhunwala i enspired very much and i wish to invest some money in share market i am a normal person please suggest me. How i can start.

    • swapnil patil says:

      Yes Definitely you can share money but the amount you invest should not hamper your family at all.
      My advice for you is to invest in food industry.

  • ranjit thakuria says:

    hi, this is Ranjit thakuria from chandigarh actually i am big fan of rakesh sir.
    i want to be a stock trader & investor like u sir ji….give some suggestion please.

  • Prakash Singh says:

    I want to know.. can my whole money become zero ?? If yes than which book shoul I read for knowledge of investment

  • I am also an investor. Your article has inspired me a lot.

  • Arunkumar says:

    truly inspiring story . Let me start my journey

  • D Sagar says:

    It was nice to see his success story. I’m a in my final year of my B.Com and I’m making really nice returns from the stock market and I strongly support his notion that if you’re passionate about stocks definately you’ll make hell lot of money.

  • Vijaykumar koshti says:

    I am a beginner of share market an no idea about it… but now its my passion… so late be ready to make story on me.. tx.. RKG

  • subhash jain says:

    sir what do thing that the market will go up

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