Rakesh Jhunjhunwala is considered to be the Indian Warren Buffett. He has a big name in the Indian stock market game. Beginning his stock market journey with just Rs. 5000, he has a net worth of 220 crores USD (2020). His success story inspires a lot of people and has proved to be a living legend in current times.
Rakesh Jhunjhunwala was born in Mumbai on the 5th of July, 1960. His father was an income tax officer, inspired by whom Rakesh aspired to be a stock market trader. Rakesh, from a very early age, used to hear the conversations among his father and a few of his friends, regarding the stock market and related news. This made him curious regarding the stock market.
When Rakesh went to his father and expressed his interest to be a trader, his father declined to say he needs to first complete the graduation and get a degree. He did so in 1985 and later came with a plan to pursue his dream of becoming a full-time trader. His father gave a condition that Rakesh would have to do this all by himself with no financial help from anyone from family or friends. Rakesh agreed to this and made his first investment in 1985. He began with a little capital of Rs. 5000 when the stock was trading 150 points. He requested some capital from his brother’s client and promised a return higher than what most of the banks would give.
Rakesh Jjunjhunwala’s first big profit was earned from buying 5000 shares of Tata tea at Rs. 43 per share and selling them at Rs. 143, within a time frame of just three months. In the following years 1986-89, he made huge profits of 20-25 lakhs. He has invested in big firms throughout his career. He owns a privately held stock market trading firm ‘Rare enterprises’ and manages his portfolio.
Rakesh Jhunjhunwala also faced his share of failures, due to falling stock prices during the 2008 recession. However, he bounced back within a few years and came back stronger. In 2002 he bought the shares of the Titan company at Rs. 3 per share, whose current value is Rs. 817. There are many such businesses where he owns more than 5% of the total capital.
In short, the journey of Rakesh Jhujhunwala has been quite an interesting one for the aspiring investors and successful investors as well. And he says “Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.”