Corporate Review

India’s Warren Buffet – Mr. Rakesh Jhunjhunwala

The Big Bull: Rakesh Jhunjhunwala

The term “King of Bull Market” is also known as the “Warren Buffett of India.” Rakesh Jhunjhunwala is a chartered accountant as well as a stock trader. According to Forbes’ Rich List, he is the country’s 48th richest individual.

He is the chairman of Hungama Digital Media Entertainment Pvt. Ltd and Aptech, an Indian digital entertainment company, and he serves on the boards of directors of Provogue India, Viceroy Hotels, Geojit Financial Services, and Concord Biotech. ‘Shamitabh,’ ‘English-Vinglish,’ and ‘Ki and Ka’ are among the films he has produced.

He was born on July 5, 1960, in Mumbai, Maharashtra, India, to a middle-class family. He was born and raised in Mumbai. His father worked as a tax official in India. In 1985, he graduated from Sydenham College with a degree in chartered accounting.

The entrepreneurial path of Jhunjhunwala to become the Big Bull is a fascinating one. Let’s take a look at India’s Warren Buffett, Rakesh Jhunjhunwala’s inspiring success stories.

Also Read : The Success Story of OLA

India's Warren Buffet - Mr. Rakesh Jhunjhunwala

When Rakesh Jhunjhunwala was in college in 1985, the BSE Sensex was about 150 points and he began trading in the Indian stock market. His father refused to give him money and prevented him from seeking investment from acquaintances.

Jhunjhunwala was a risk-taker from the beginning. He took out a loan from one of his brother’s clients. He guaranteed him that he would repay the money with a higher rate of return than bank fixed deposits.

Jhunjhunwala began investing in Tata Tea shares in 1985 with a capital of $5,000. He paid Rs 43 for this stock.

Because Tata Tea shares soared to Rs 143 in three months, he made his first significant profit of 20-25 lakh.

Jhunjhunwala has made profitable investments in Aurobindo Pharma, Sesa Goa, Praj Industries, Titan, CRISIL, and NCC over the years.

Rakesh Jhunjhunwala’s Net worth

By the year 2018, the capital has grown to Rs 11,000 crore. Rakesh Jhunjhunwala’s net worth is presently estimated to be around $4.6 billion, or Rs 34,387 crore, according to the most recent Forbes Magazine updates.

Rakesh Jhunjhunwala made his first profit in the Indian stock market by investing in Tata Tea. Jhunjhunwala earned a profit of 5 lakhs in 1986. He purchased 5000 Tata tea shares. In just three months, the stock had risen to 143.

His investment grew by more than threefold. He sees himself as a long-term investor as well as a trader.

The King of Bull Markets today is In the days of Harshad Mehta, Rakesh Jhunjhunwala was a bear. After the Harshad Mehta Scam in 1992, Jhunjhunwala made a lot of money by selling shares.

In one interview, Rakesh Jhunjhunwala stated that he makes a lot of money via short selling, or selling shares. He was a bear cartel member.

Manu Manek, also known as Black Cobra, led one such Bear Cartel, which included Rakesh Jhunjhunwala and Radhakishan Damani (RK Damani), among others.

Harshad Shantilal Mehta was featured in the web series Scam 1992. In 1992, journalist Sucheta Dalal exposed the Harshad Mehta fraud, which caused the stock market to plummet.

In 1987, Rakesh Jhunjhunwala married Rekha Jhunjhunwala. She was also an investor in the stock market. In the year 2003, he founded “Rare Enterprises,” a stock trading firm named after a combination of his wife Rekha’s and his own names.

Rakesh Jhunjhunwala is the CEO of RARE Enterprises, a privately held stock trading firm. The name is a combination of his first two initials and the name of his wife, Mrs. Rekha Jhunjhunwala.

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

Rakesh purchased ‘Titan Company Limited’ at an average price of Rs 3 in 2002-03, and it is currently selling at Rs 2160. He has about 4.2 crore shares in the Titan Corporation. As of June 2021, he has a 4.8 percent ‘overall’ stake in the corporation.

He invested in LUPIN in 2006, with an average buying price of Rs 150. LUPIN is currently selling at Rs 951. Rakesh’s portfolio also includes a few additional multi-baggers such as CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.

Rakesh Jhunjhunwala’s Style

Rakesh Jhunjhunwala considers himself as both a trader and a long-term investor

According to him , something that he follows and practices is that “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.”

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