The big bull of India: Rakesh Jhunjhunwala

Rakesh Jhunjhunwala was the most influential voice in the Indian stock market. He was known as an investor with the Midas touch. According to the Forbes Rich list, Rakesh Jhunjhunwala was the 37th richest man in India.

He was famous for investing in small stocks and making huge profits. He had many followers who looked to him for investing tips.

Jhunjhunwala was born in 1960 in Mumbai and started investing when he was in college. Jhunjhunwala was a chartered accountant and yet a risk taker. His father refused to give him money to invest in stocks and told him not to borrow from his friends.

So he borrowed money from his brother’s clients and promised to come back to them with higher returns in comparison to fixed deposits.

Jhunjhunwala made his first significant profit in 1986 when he purchased 5,000 shares in Tata Tea. In three months, the stock was worth three times what he paid for it. There has been no turning back since then.

He built an empire through small investments. In the late 1980s, he made a bet on iron ore exporter Sesa Goa which brought him his first crores. He bought the stock at 25-26 rupees and sold the holding in tranches, riding the stock till it reached 2,200 rupees.

He had investments in more than three dozen companies. During the 2008 financial crisis, the value of his investments fell by 30%. But he returned to profit in 2012. At present, Rakesh Jhunjhunwala and associates publicly hold 33 stocks with a net worth of over Rs 25 billion.

Jhunjhunwala was called India’s Warren Buffet. But he thought this comparison to Warren Buffet was not fit, as the latter was far ahead of him in terms of wealth, success and maturity.

In a 2021 interview, he said, “I am not a clone of anyone. My name is Rakesh Jhunjhunwala. I've lived life on my terms. I do what I like.”

Final Note: Rakesh Jhunjhuwala, the mogul of Dalal street, died on Aug 14, 2022, in Mumbai. He was 62. He believed his worst investment was his health and advised people to invest in their health.