18 December 2023
5 min read
Popularly known as the “Warren Buffett of India,” Rakesh Jhunjhunwala is one of the greatest stock market investors India has ever seen. Born on July 5, 1960, Rakesh Jhunjhunwala was a stock market veteran. His father was an Income Tax Officer. So it was due to his father that he got interested in the stock markets.
He would listen to his father talks about stocks, and slowly, he started developing an interest. Jhunjhunwala was also a certified Chartered Accountant (CA) and completed his education in 1985. After completing his CA, he wanted to enter the stock market. However, his father did not help him financially.
He made his first profit in Tata Tea, where he bought 5,000 shares of the company at INR 43 and sold them for INR 143 per share. And he is known as one of the most famous and respected equity investors in India who managed his portfolio as a partner in his AMC (Asset Management Company) Rare Enterprises.
His total net worth was estimated at around $5.8 billion (As of 2022). The popular financial daily newspaper, Economic Times called him ‘The Pied Piper of Indian Bourses.’
Unfortunately, this witty and sharp-minded personality passed away on August 14, 2022, due to a kidney problem and multiple organ failures.
Entering The Stock Market
Mr. Rakesh Jhunjhunwala entered the stock market in the early 1980s with a small investment in a few shares. He started as a small-time investor but quickly developed a keen interest in the stock market and the financial markets. He began to study the market trends and analyze the performance of various companies, and eventually became a successful and well-respected investor in the Indian stock market.
Between the years 1986 to 1989, Mr. Jhunjhunwala made large investments in blue-chip companies including Tata Power Ltd., the price of which rose to INR 1200 each and made the asset of the veteran investor double from INR 2 million to INR 5.5 million.
One of his early investments also includes Sesa Goa, now called Vedanta Ltd. He had bought almost 400,000 shares of this company which was under severe stress due to the fall in the prices of iron ores.
Jhunjhunwala also invested in Praj Industries Ltd., an Indian ethanol plant sector stock. He held it for a long time (he bought it when the index stood at 5,500 and sold it when the index was at 12,000 points) thereby generating an appreciation of nearly 250 percent in the stock.
Latest Stock Portfolio of Rakesh Jhunjhunwala (Until Mar 2022)
SL. No. | Company Name | No. of Shares | Current Price | Total Value |
1 | Bilcare Ltd | 1997925.00 | 65.55 | ₹ 130,564,398.75 |
2 | Canara Bank | 35597400.00 | 208.00 | ₹ 7,423,837,770 |
3 | Geojit Financial Services Ltd. | 18037500.00 | 51.55 | ₹ 909,991,875 |
4 | Jubilant Ingrevia Ltd. | 5020000.00 | 493.00 | ₹ 2,504,729,000 |
5 | Prozone Intu Properties Ltd. | 3150000.00 | 21.35 | ₹ 66,937,500 |
6 | Indiabulls Real Estate Ltd. | 5000000.00 | 62.10 | ₹ 318,750,000 |
7 | Titan Company Ltd. | 44850970.00 | 2138.70 | ₹ 95,442,864,160 |
8 | Man InfraConstruction Ltd. | 4500000.00 | 80.30 | ₹ 368,550,000 |
9 | NCC Ltd. | 78333266.00 | 56.50 | ₹ 4,457,162,835.4 |
10 | Fortis Healthcare Ltd. | 31950000.00 | 252.75 | ₹ 8,083,350,000 |
11 | Tata Communications Ltd. | 3075687.00 | 977.00 | ₹ 3,010,174,866.9 |
12 | Autoline Industries Ltd. | 1751233.00 | 60.15 | ₹ 106,299,843.1 |
13 | Agro Tech Foods Ltd. | 2003259.00 | 865.10 | ₹ 1,713,487,585.65 |
14 | Aptech Ltd. | 18112312.00 | 221.65 | ₹ 4,023,650,110.8 |
15 | National Aluminium Company Ltd. | 25000000.00 | 74.20 | ₹ 1,857,500,000 |
16 | Wockhardt Ltd. | 3000005.00 | 209.55 | ₹ 627,001,045 |
17 | Anant Raj Ltd. | 10000000.00 | 59.60 | ₹ 589,500,000 |
18 | Orient Cement Ltd. | 2500000.00 | 114.80 | ₹ 283,875,000 |
19 | Tata Motors Ltd. - DVR Ordinary | 15000000.00 | 213.10 | ₹ 2,244,000,000 |
20 | Delta Corp Ltd. | 20000000.00 | 180.55 | ₹ 3,486,000,000 |
21 | Jubilant Pharmova Ltd. | 10770000.00 | 367.25 | ₹ 3,950,974,500 |
22 | Tata Motors Ltd. | 39250000.00 | 435.80 | ₹ 16,908,900,000 |
23 | Dishman Carbogen Amcis Ltd. | 5000000.00 | 117.85 | ₹ 588,000,000 |
24 | VA Tech Wabag Ltd. | 5000000.00 | 242.60 | ₹ 1,218,250,000 |
25 | Rallis India Ltd. | 19068320.00 | 196.00 | ₹ 3,731,670,224 |
26 | CRISIL Ltd. | 4000000.00 | 3356.35 | ₹ 13,729,800,000 |
27 | The Indian Hotels Company Ltd. | 30016965.00 | 241.95 | ₹ 7,328,642,004.75 |
28 | The Federal Bank Ltd. | 54721060.00 | 97.00 | ₹ 5,307,942,820 |
29 | Indiabulls Housing Finance Ltd. | 6000000.00 | 94.50 | ₹ 578,700,000 |
30 | Edelweiss Financial Services Ltd. | 15125000.00 | 53.00 | ₹ 803,137,500 |
31 | Star Health and Allied Insurance Company Ltd. | 100753935.00 | 533.80 | ₹ 53,419,736,337 |
32 | Metro Brands Ltd. | 26102394.00 | 585.95 | ₹ 15,161,575,554.9 |
33 | DB Realty Ltd. | 5000000.00 | 63.20 | ₹ 305,000,000 |
34 | TV18 Broadcast Ltd. | 20000000.00 | 39.60 | ₹ 772,000,000 |
35 | Nazara Technologies Ltd. | 3294310.00 | 617.35 | ₹ 2,088,098,393.5 |
36 | Karur Vysya Bank Ltd. | 35983516.00 | 45.75 | ₹ 1,642,647,505.4 |
Learnings From Mr Jhunjhunwala
Rakesh Jhunjhunwala believed that his most excellent knowledge in the market had been making mistakes and learning from them. He had always thought of the need to be supreme. According to him, if we do not get this principle right, we will never be able to earn money in the long run.
He has been a harbinger of India’s growth story and believed the bull market is here to stay. Going by a simple calculation he made, if Indian households save $1 trillion every year and of that even if $100 billion flows into the equity markets, it will be a huge bonanza for the needs.
He also told the investor community to cling to not judging a stock by a one-day correction or one bad quarter but only believing in judging a stock by its performance in the long run.
Key Learnings
Rakesh Jhunjhunwala, also known as the "Big Bull" of the Indian stock market, was a well-known and successful investor in India. Some key takeaways from his investment philosophy and approach include the following-
Long-Term Perspective
Jhunjhunwala emphasized the importance of taking a long-term perspective when investing in the stock market rather than focusing on short-term fluctuations.
Analysis and Research
Jhunjhunwala is known for conducting extensive analysis and research on companies before investing in their stock. He looked out for undervalued companies with solid fundamentals that he believed had the potential to grow in the long term.
Patience
Jhunjhunwala advised investors to be patient and not to make impulsive decisions based on short-term market movements.
Believe in Yourself
Jhunjhunwala believed that one should not follow the herd mentality in the stock market and should believe in their research and analysis.
Diversification
Jhunjhunwala also believed in diversifying one's portfolio across different sectors and companies to reduce risk.
Be Ready For Volatility
The stock market is volatile, and you should be ready for it and not get panicky during market corrections.
Conclusion
Though a lot of Indians invest in the market, we have witnessed only a few, like Rakesh Jhunjhunwala, who has been so consistent in producing returns. It is worthwhile to know that he followed the concept of buying right and keeping that particular stock in his portfolio for a long time.
If we follow this simple concept and develop the attributes of patience and discipline, we are sure to benefit in this world of investing. Mr Jhunjhunwala was a true inspiration and a great example of how hard work, dedication, and a keen understanding of the market can lead to success.
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Aakash Baid
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