Fondly referred to as the Big Bull, the ace investor has been making his mark on Dalal Street ever since 1985, when the BSE Sensex was ruling at 150 level. Starting his career with just Rs 5,000, Jhunjhunwala is today 48th richest Indian with $2.2 billion (nearly Rs 16,400 crore) in assets, as per Forbes.
Among his early investments,
BEML (100 times), Lupin (160 times), Crisil (200 times) and SCI (1200 per cent) are some other stocks that did wonders for Jhunjhunwala in the 2000s. In the last decade, the ace investor made 20 times return in Escorts (2013-2020) and 200 per cent in Tata Communications (2010-2020).
But what contributed most to Jhunjhunwala's wealth was Titan Company, which jumped 80 times between 2005 and 2020, and remains his biggest stock holding even today.
So, what made Jhunjhunwala a successful trader and investor?
“Trading and investing are like having a wife and a mistress. You can’t manage both well. So, keep them apart. One should not know anything about the other,” Jhunjhunwala, whom the media calls the Warren Buffett of India, said in a 2018 interview:
“Trading is momentum, 'le fatafat, de fatafat' (buy and sell quickly). But in investing, one can be contrarian and can still make money," he said.
"In trading, ROEs are highest and cash flows are great. I love trading. Given a choice, I would love to make all my money out of it. But that's not possible. You lose money, also,” he said.
Jhunjhunwala said that 98 per cent of the money in the stock market is made by being a bull. The ace investor said, in the past he at times used technical analysis, which helped him make long-term returns. “As an investor, I may feel a stock is overpriced and so I should sell. But my trading skills teach me that stocks can be overvalued and still get more overvalued,” he once told ETNow.
Radhakishan Damani, who Jhunjhunwala calls his mentor, said the Big bull is an original thinker. “He does not get carried away by other’s thought processes. He is a sharp guy. He really believes in Indian equities and India's prosperity," Damani once told ETNow.
When Vishal Gupta, Jhunjhunwala's nephew moved to Mumbai in 2005, the ace investor convinced him to go for chartered accountancy instead of law. Gupta joined him four years later at Rare Enterprises, a privately-owned stock trading firm, whose name was derived from the first two initials of his and his wife Rekha Jhunjhunwala’s names.
“He was two different people. One was a kind uncle at home, the other was a super sharp boss, He has a compartmentalised mind, whose one part is an investor and the other is trader. The investor mind is an eternal optimist, a big picture guy; while the trader part is realistic that keeps eyes on the numbers all the time,” Gupta said.
Jhunjhunwala values stocks on five parameters: patience, people, governance, frugality and technology. In June, Jhunjhunwala said he still thinks that the mother of all bull markets has started. "Bull markets are test matches, they are not 50-over matches,” he said.
Asked about his plans for his 60th birthday, Jhunjhunwala in the same interview said: “I am only realising that we live 60 years. So, we have finite life. Do what you want, fast.”
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20 Comments on this Story
shalu sahu27 days ago
big fan of sir ca rakesh jhunjhunbala
Universal Soldiers157 days ago
Kindly remove the old story.Is he paying to continue it.Its an Eyesore.
LDS D236 days ago
There is no doubt that Rakesh Jhunjhunwala is the media darling. That's because of his complex on-screen presence. Always brash, often crass and thoroughly entertaining. Now what's wrong with that? A person should be judged by outcomes, and on that count, Rakeshji is par excellence. One may hate him because he has made a lot of money, but he must certainly be respected, because he has accomplished what he set out to do in 1985 - make tons of money. Nobody in the investment world has made lots of money without also big losses on major miscalculations. Even the great Warren Buffet has made some costly investing mistakes over his long career, yet we salute his greatness. Rakesh has had his big mistakes too, but has had many stupendous hits, that's why his wealth is Rs 16400 CR. Let's salute him and wish him a long, happy and successful life ahead.