Rakesh Jhunjhunwala

This presentation represents about the life journey of Rakesh Jhunjhunwala and explains how he became rich by investing in share market.

1. Success story of Rakesh Jhunjhunwala Image Source: www.capitalmind.in

2. Introduction Rakesh Jhunjhunwala is one of the most successful and famous investors in India. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises . He has made D 17280 crore with a starting capital of only D 5000 and is India’s 54 th richest person (Dec 2017 ). He is the Chairman and Board of Director (BOD) of many companies.

3. Introduction India Today magazine has called him as Pin-up boy of current Bull Run. The Economic Times has referred him as Piped Piper of Indian bourses. Many Indians refer him as India’s Warren Buffett .

4. Early Life Mr. Jhunjhunwala was born in the middle-class family on 5th July 1960 in Mumbai. He was very curious about stock market from his childhood and always ask many questions related to stock market to his father who was an Income Tax Officer. He completed his graduation from Sydenham College in Mumbai. After completing his CA in 1985 , he decided to make his career in Stock Market.

5. Early Life Rakesh told his father about his career plan and his father gave him 3 advices which helped him in his investment career. His father advised him: 1) Do what you enjoy. 2) Never go to any of my friends or never ask me for Money . 3) Be Fearless.

6. Initial Investment Mr. Jhunjhunwala’s father gave him R 5000 for investing in share market. He borrowed extra R 250000 from his brother’s client and promised her to give 18% interest annually. Similarly he got R 500000 from another man. Hence his total initial investment was near about R 755000 .

7. Journey Started In his initial years of trading Mr. Jhunjhunwala earned the profit of almost 8 to 10 lakhs. He earned his first big profit of D 5 lakhs by selling the 5000 shares of Tata Tea for D 143 , which he had bought at D 43 just 3 months before. He earned the profit of 20-25 lakhs between the years 1986 to 1989 .

8. Major Multibagger’s Mr. Jhunjhunwala earned huge profit by selling the shares of Sesa Goa. He bought 5 lakh shares at an average price of D 30 to 35 and just after 6 months sold them at the price varying from D 65 to D 150 . In 2002-03 he bought the shares of Titan ltd. at D 4.5 per share, and today the price of each share of Titan is almost around D 700 . There are many such other stocks from which Mr. Rakesh Jhunjhunwala has earned multi-bagger returns.

9. Turning point of his Career The major break in the career of Mr. Rakesh Jhunjhunwala was the union budget of 1989 . Mr. Madhu Dandavate was the finance minister and he presented the budget which was very supportive to business. Before the budget, net worth of Mr. Jhunjhunwala was of D 2 crore, but after just 5 to 6 months, net worth of Mr. Jhunjhunwala was about D 50 crore.

10. Rare Enterprises Rare Enterprises is the asset management firm established by Mr. Rakesh Jhunjhunwala. He manages his own portfolio as a partner in Rare Enterprises. Name Rare is formed by amalgamation of two words, Rakesh and Rekha. RA from Rakesh and RE from the name of his wife Rekha.

11. Investment Philosophy Rakesh Jhunjhunwala believes that trading is not opinion based; it is trend and price based. According to him, in order to be successful in investments, it’s important to keep four things in mind. There has to be an attractive external opportunity, sustainable competitive advantage, operating leverage and high-quality management. He says that “Accept your mistakes, learn from them and move forward”.

12. Tips from Mr. Rakesh Jhunjhunwala Mr. Jhunjhunwala gives following valuable tips to investors. 1) Invest in a business that you understand. 2) Don’t try to time the market. 3) Don’t look for profits. Look for success of profits. 4) Be patient. 5) Forget market capitalization and look for Scalability of Operations. Image Source: www.capitalmind.in

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