“Markets are like women - always commanding, mysterious, unpredictable and volatile.” says a man who is truly inspirational, a billionaire and has given a twist to the Indian perception of stock markets.
This man is the Big Bull Rakesh Jhunjhunwala, who is known as the Indian Warren Buffet or the King of Dalal Street! Also widely known as the 'Phoenix of the stock market', Rakesh Jhujhunwala, started from an investment of Rs 5,000 and earned riches of $3.1 billion.
For the uninitiated, money-making in the stock market is not as easy as it seems but for Mr. Jhunjhunwala it is a habit. His story from rags to riches is highly motivating and uplifting.
About Rakesh Jhunjhunwala
Rakesh Jhunjhunwala was born in Mumbai on 5th July 1960. His father actively invested in the stock market which eventually had an influence on him. The first stream of intellect about the stock market was when he asked his father about the reason for fluctuations in the stock price. His father answered that price fluctuation is influenced by the flow of news.
Later in his life, he became a qualified charted accountant and then got into the stock market. Currently, he manages his own stock portfolio and is a partner in Rare Enterprise, an asset management firm.
His story involves a lot of struggle from the initial days when he tried increasing the capital to be invested in the stock market. But, he managed to borrow money and earned his first profit of $1 million and invested it in Tata Power. This was his enlightenment moment. He realized that trading is the only option for him to earn big money from the stock market. He started trading in stocks. His every small move was making him wealthy.
It must be really intriguing to know how he did it. Well, his success story is a culmination of the following five tenets:
In one of Mr. Jhunjhunwala’s interviews, he said that he barely had any capital to invest in the market. He had to earn it all himself. But, the big question was how did he earn that capital to invest? He revealed that he got the capital by doing future trading.
Rakesh Jhunjhunwala started with just Rs. 5,000 and that was a good capital for investment in 1985.
Not everybody has the knowledge to invest in the right stocks and make money. “Markets are about money, but markets are also about knowledge. Markets are also about egos; markets are also about the satisfaction of having been proved right. Especially, when that right is from an original thought and not from a guided source or following somebody,” said the expert on stock markets, Mr. Rakesh Jhunjhunwala.
A lot of research, data study and skill goes into acquiring the knowledge before investing in the stock market. This might not be everybody’s cup of tea.
Right time Right Decision
Timing is extremely crucial in the stock market. Someone who has done mastery in picking the right stock at the right time is Mr. Rakesh Jhunjhunwala. His first big profit of Rs 0.5 million in 1986 from Tata Tea which he bought at Rs 43 and sold at Rs 143 was proof of his excellent timing.
The Baadshah of the stock market witnessed a 30% fall in his stocks in December 2011. He could have easily been affected by it and could’ve sold his shares but, his quality of being patient and believing his judgment has taken him far. His patience bore fruits and he recovered all his losses in February 2012.
His strategy speaks a lot about his belief in long term holding of stocks. Titan Company stock held by his wife and him for almost 17 years has risen over 12 percent or 129.5 points in the last 10 trading sessions. He got around 35% returns from his portfolio in 2019.
Industrialist Dhirubhai Ambani once said, “Only when you dream it, you can do it. Rakesh Jhunjhunwala has been a true believer of this and has made 310 crores USD as of September 2019 from just Rs 5000 in 1985. He believes in his dreams and visions and has the potential to make them his reality. He has been a visionary in his area of expertise.
Rakesh Jhunjhunwala has a portfolio of 27 different stocks and the total value is about Rs. 20,700 crores. His understanding of the market is unbeatable and it reflects in his track record of investments. His lessons on investing and long term holding are true gold for other investors. The following words of Mr. Jhunjhunwala are a treasure for stock enthusiasts:
Investing is not easy, and it requires full attention. The biggest mistake people make is to blindly expect good returns. The proof of the pudding is in the eating. Thus, get inspired by the ace investor, Rakesh Jhunjhunwala and happy investing to you!