Rakesh Jhunjhunwala Story: How he became successful billionaire by investing in stock market | Hindi - YouTube

Mr Rakesh Jhunjhunwala was born on 5th July 1960 in Mumbai, where his father worked as an Income Tax Officer. From his childhood only, Rakesh was interested in the stock market.

When Rakesh father and his friends used to meet and discuss the stock market, then out of curiosity Rakesh used to ask him questions related to it, and at that time he was 11-12 years old.

In general, he used to ask why there are fluctuations in the stock market. His father used to answer these questions in full details.

Rakesh Jhunjhunwala graduated from Sydenham College in Mumbai. In 1985 after completing his CA he told his father that he wants to pursue a career in the stock market. With this, his father told him a few things which helped him in his career.

He told Rakesh that ‘Do what you enjoy’ and that ‘Don’t go to any of my friends and don’t ask me for money’ and lastly he said ‘Be fearless’, and encouraged him.

That time Rakesh only had 5000rs with himself, his brother was a CA who had a lady client who had good capital and wanted high returns.

That time from bank deposits only gave 10% returns. Rakesh told that lady that he will give her 18% returns per annum, due to which that lady gave her 2,50,000rs.

Apart from that lady, he also got Rs.5,00,000 from someone, and with his, he got his initial capital.

In the initiation of his career, he started doing trading and earned 8-10 lakhs profit. But next 2-3 years were quite tough for him

Then in 1988, he sold 2,50,000 lakhs Sesa Goa shares which he bought for Rs.28 and he sold 2,50,000 lakh shares at Rs. 35. After 6 months Sesa Goa shares increased to Rs. 65

In 1989, under V.P Singh’s government, Mr Madhu Dhanwati was finance minister and his 1989 union budget became a career turning point for Mr Rakesh Jhunjhunwala.

From small investors to big market players, everyone thought that Mr Dhanwati’s union budget will focus more on social things than business.

Everyone had this fear. Mr V.P Singh was a Thakur and he knew about business efficiently, so Rakesh knew that he won’t bring in a budget which would hurt the business.

And, thus on the day of the budget, the same thing happened which Rakesh thought off.

Mr Madhu Dhanwati presented a very good budget which was very supportive of the business. Rakesh Jhunjhunwala’s net worth before Mr Madhu Dhanwati budget was Rs. 2 crores which increased to 40-50 crores after this budget in 5 months.

Then he started Rare Enterprises, which is an Asset Management Firm from where he manages his own portfolio. The first two letters of Rare (RA) is taken from Rakesh Jhunjhunwala’s name and RE is taken from his wife Rekha’s name.

In 2002-03, he bought Titan Company shares, which is a jewellery brand at Rs. 4.5 per share average price.

Titan stock went up to Rs. 80 and got down to Rs. 30. When this stock went down to Rs. 30 then Rakesh Jhunjhunwala’s portfolio value decreased to 300 crore

But he did not sell his share when the price was Rs. 30, because he felt that titan will grow more. And, today its share price is around Rs. 400. This states that an investor should have patience, and thus, this example tells us that only.

Not only Titan but for many investment Rakesh has shown patience. In 2005, he sold his Crisil shares of 27 crores and got an apartment at Malva, Mumbai.

Later he sold this apartment at a good price. Rakesh says that the price of that flat today would have been 80-90 crore, but if that time he hadn’t sold his crisil shares for 27 crores then today its value would have around 700-800 crores.

But Rakesh never regrets his mistakes instead he learns from those mistakes. He believes that one main criterion to learn investing is, experience and this comes from mistakes.

According to him, the market is supreme, it is never right nor wrong. Right or wrong is the person, so if you make mistake, then accept it, learn from it and move ahead.

If you never accept your mistake, then you’ll never learn.

Mr Rakesh Jhunjhunwala is known for his long term bets, but he is an active trader too. He started his career through trading only through which he made his capital base strong.

According to him, trading always keeps him alert. In his career, he found may Multibagger stocks like CRISIL, Praj Industries, LUPIN, Titan etc.

These stocks gave him amazing returns. He always believed in India’s growth story. He never gets emotionally attached to any stock.

He teaches the same to other people as well, and he buys every stock to sell it off. If he finds potential in any stock, then he keeps it for the long-term.

Mr Jhunjhunwala didn’t aim to make his career into stock market investing because he wanted to become a wealth creator one day but he did it because he is very passionate about it and enjoys it.

According to him, investing is the best profession in the world. He is now a movie producer also, he has produced English Vinglish, Shamitabh, Ki and Ka movies.

He is the board of directors of many companies today. He is also known as Indian Warren Buffett, and he is the most prominent stock market investor in India.

As per Forbes 2017, he is India’s 53rd Richest Person. His net worth is 2.2 billion dollars (15,000 crores)

On his 60th birthday (5th July 2020) he decided to donate 25% of his entire wealth.

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