On July 5, 1960, Mr. Rakesh Jhunjhunwala was born in Mumbai to a fairly middle-class family. His father worked as a tax official. Since he was young, he was interested by stock marketing. He used to ask his father questions out of interest whenever he and his business colleagues would discuss investments and stock marketing, such as Why do shares go up and down? His father always answered all of his questions in great detail. He received his diploma from Mumbai’s Sydenham College of Commerce and Economics. He inquired about pursuing a career in stocking marketing after earning his Chartered Accountancy degree in 1985. Then, his father gave him some advice that is still helpful to him now. To him, his father said: Always do what you’re interested in. His father used to encourage him and say ‘Be fearless’.
Rakesh Jhunjhunwala had just 5,000 rupees in his pocket when he began his job. At that time, his brother, a chartered accountant, had a fantastic client. That woman wanted high returns on her substantial wealth. At that time, the bank offered a deposit return of 10%. Rakesh made her an offer to provide 18% returns annually, and as a result, the lady gave him 2,50,000 rupees. He also borrowed 5,000 from another individual, and in this way he gradually organised his basic cash. Rakesh began his business by trading and made between 8 and 10 lakh rupees. Rakesh Jhunjhunwala made his first sizable profit of Rs. 0.5 million in 1986. Tata Tea was selling at Rs 143 three months after he purchased 5,000 shares for Rs 43. By selling the Tata tea stocks, he realised a profit that was more than three times what he had invested in the upcoming years. Many of Rakesh Jhunjhunwala’s stock trades were profitable. He made between 20 and 25 lakhs rupees (1986 to 1989). Sesa Goa was his subsequent significant investment, which he initially purchased for Rs 28 before increasing his stake to Rs 35. The stock quickly increased to Rs 65. Rakesh Jhunjhunwala is the owner of the privately held stock trading firm RARE Enterprises. His first two initials and those of his wife, Mrs. Rekha Jhunjhunwala, are combined to form the name.
Rakesh Jhunjhunwala made a lot of multi-bagger stock investments throughout the course of his extensive career in the stock market. Titan Company Limited was purchased by Rakesh Jhunjhunwala in 2002-2003 for an average price of Rs 3, and as of right now, it is selling for Rs 2140. He currently owns more than 4.4 billion shares of Titan. As of March 2022, he held 5.1% of the corporation “overall.” He invested in LUPIN in 2006, paying an average of Rs 150 each purchase. LUPIN is currently trading for Rs 635. The portfolio of Rakesh Jhunjhunwala also includes other multi-baggers like CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.
Recently, Rakesh Jhunjhunwala made headlines once more for earning 50 crores in just 8 days. He was a movie producer in addition to serving on the boards of directors for significant businesses including Prime Focus Ltd., Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc. He produced films including “English-Vinglish,” “Shamitabh,” and “Ki and Ka.” He serves as chairman of Hungama Digital Media Entertainment Pvt Ltd. Both a trader and a long-term investor, Rakesh Jhunjhunwala describes himself.
From his interview with Economic Times, the following is a quote:
“Short-term trading is done to make money quickly. Long-term trading is done to build up capital over time. You get the money to invest through trading. My trading aids my investment because I frequently utilise technical analysis for trading. If the stock is pricey, I should sell it, but based on my trading experience, I believe it may continue to be overpriced or even increase. As a result, I keep my investments. Therefore, they are two totally different compartments, yet I think they compliment each other in many ways. Passionate investors consistently profit from the stock market. If you put your everything into your work, you’ll never fail.’
Qualities of him in stock trading and marketing-
1. Patience – Be patient along with Titan, he showed his outstanding patience in a number of other organisations. He sold 27 crores of Crisil shares in 2005 and spent the money on a Mumbai apartment in Malabar Hill. He frequently advises being a patient investor.
2. Learn from mistakes – He eventually sold that apartment for a sizable sum of money. That apartment would have cost between Rs 80 and Rs 90 crore, but “if I had not sold the 27 crores worth of Crisil shares, then its value today would be between Rs 700 and Rs 800 crore.” He always learns from his mistakes rather than regretting them. He asserts that the market is the only thing that is ever right or wrong, and that it is only to be you. Therefore, anytime you make a mistake, first accept it, then move on and learn from it. If you never acknowledge your mistakes, you’ll never grow.
3. Experience and aptitude – He thinks that one of the wheels of investment is experience, and that we learn from our mistakes. This is one of the reasons why Rakesh Jhunjhunwala’s investments have been successful.
4. Be active- According to him, a prudent investor ought to be a person of action. Though he is well renowned for his long-term investments, he also engages in frequent trading. He uses trading to bolster his capital basis in the beginning of his career. Trading, according to him, keeps him awake.
5. Passion – He advises that you should have a strong passion for your objective. He didn’t choose stock marketing as a career because he aspired to fame as a well-known creator, but rather because he is passionate about it and finds it enjoyable.
6. Vision – You must have the vision to realise success in any endeavour. His progression from Rs. 5000 to 5119 Crores demonstrates his superb foresight. Rakesh Jhunjhunwala has always been a pro at making the right choice at the appropriate time. He has the ability to guide him in investing by helping him choose the appropriate investment at the appropriate time. The market, the weather, death, and women are all unpredictable. The market is like a woman; she is constantly in charge, enigmatic, unreliable, and unpredictable. A woman is never completely under your control, and the same is true of the market- Rakesh Jhunjhunwala.
Written by – Nidhi Shah
Edited by – Roshan Kukreja