If you are a share market enthusiast and willing to know the power of the share market. Then this post is for you because here we are going to discuss the entrepreneurial journey of Mr. Rakesh Jhunjhunwala. Here you will learn how he earned over Rs34,000 crores just from Rs5,000, and we will also discuss why we call him the Warren Buffet of India. So, if you want to know this fantastic success story of Rakesh Jhunjhunwala, then stay here on this post.
About Rakesh Jhunjhunwala
Mr. Rakesh Jhunjhunwala belonged to Mumbai and was born on 5th July 1960. His father used to invest in the share market, and as his father was involved in stock trading, he also got motivated to try his career in it. Later he became a certified chartered accountant and also kept doing trading in the stock market. Now he is famous as the king of the bull market, and many times people also refer to him as the Warren Buffett of India. Forbes is the 48th richest person in India and works as a trader and a chartered accountant.
Currently, Mr. Jhunjhunwala is the chairman of the leading Indian entertainment company. And the name of his company is Hungama Digital Media Entertainment Pvt Ltd. He also attends the board of directors meeting in top companies, including Viceroy Hotels, Geojit Financial Services, and Provogue India. He has also produced many Bollywood movies, including English Vinglish and Ki And Ka. He has achieved a lot more things; however, he was born into a middle-class family.
But his enthusiastic approach takes him to the level he deserves right now. He took the degree of a chartered accountant from Sydenham College and completed this course in 1985. His triumphant journey in the share market is one of the vital motivational sources for the young generation willing to try their luck in stock trading. Rakesh Jhunjhunwala started doing trading in 1985, where he mainly used to invest when he was in college. At that time, the BSE Sensex did not have a significant point but 150. His father was an income tax officer and used to invest in the share market.
He knows how risky and addictive the share market can be. Hence when the Jhunjhunwala asked his father for some money to invest in the share market, his father refused. And then he started asking his college friends for some money for investment. Finally, he collected some money from his brother’s client and claimed he would give a higher interest rate than FDs of that time. With that money, he purchased the 5000 shares of Tata Tea, where these stocks were trading at Rs43. With this investment, he earned a significant profit of 21 to 25 lakh rupees because within three months the Tata Tea raised its shares to Rs143.
Since that time, he is successfully trading in the share market and has invested in many companies. These companies’ names are Titan, NCC, Sesa Goa, CRISIL, and Praj Industries.
What’s The Net Worth of Rakesh Jhunjhunwala?
In 2018, the Jhunjhunwala’s capital was nearly Rs11,000 crores which got multiplied in recent years. According to the latest Forbes report, the net worth of Rakesh Jhunjhunwala is $480 crores which is more than Rs34,387 crores. Because of this, net capital worth counts in the list of top richest Indian people and secures 48th position.
He earned his first profit through stock investing from Tata Tea, from which he earned Rs5,00,000 profit. Rakesh Junjhunwala came into the stock trading business with the dual approach he used to act as an investor and trader. However, he used to perform his trading activities like a bull in the days of Harsham Mehta.
After the Harshad Mehta Scam, which happened in 1992, he earned money by selling the shares. In one of his interviews, he also revealed that he earned so much money from short-selling, selling the shares. Rakesh Jhunjhunwala got married in 1987 to Rekha Jhunjhunwala and later in 2003. They opened their stock trading firm called Rare Enterprises.
What’s The Portfolio of Rakesh Jhunjhunwala?
Mr. Rakesh Jhunjhunwala has a robust portfolio as he and his associates have invested in around 37 stocks currently. He has invested in Tata Communications, Titan Company, Tata Motors, Delta Corps, Nazara Technologies, and many other companies. Currently, his network is nearly Rs 19,500 crore, and in this worth, Tata Motors shares Rs1474 crores, Titan shares Rs7880 crores, and Crisil has Rs1600 crores share in his net worth. From this, you can understand how rich he is and how much effort and struggle he had made to achieve this outstanding milestone.
From this beautiful journey, you can learn from him and his key characteristics such as patience, accurate decision-making, and clear vision.
He has set an example of patience as well because, in the share market, you need it a lot. Like every single second the things get changed, and the upward trend can suddenly go down. In 2011 the stock market recorded a 30% downfall, and many stockholders gave up and made their decision instantly. However, Mr. Rakesh kept his shares with him and recovered all the losses in 2012 just because he was patient.
If you want to become a successful trader or investor, you need to have a clear vision. You should identify yourself as a short-term trader or long-term investor. Also, you should limit your investment amount and expect a wise return when you choose an investment option.
Along with this, making the right decisions at the right time is also a critical asset that an investor should have. Many times the ups and downs of the market can cause significant loss, and it can be redeemed by making some crucial trading decisions.
Conclusion
So, in this article, we discussed Rakesh Jhunjhunwala’s success story and covered a detailed analysis of it. Here we discussed how he started and succeeded in the share market and created a wealthy lifestyle. He is still one of the significant shareholders and investors in the stock market, and he can control the trading arena. All these he achieved with patience, proper decision making, and various other factors which made him a trading enthusiast.