How Rakesh Jhunjhunwala Once Made Rs 20 Crore From Rs 3 Crore (Image Source: PTI)
Rakesh Jhunjhunwala, renowned for his stellar success in the stock market, began his journey with a mere Rs 5,000 in the mid 1980s. He partnered with his elder brother after completing his CA, where he gained clients and generated substantial returns for them.
During a seminar, Rakesh Jhunjhunwala recounted a pivotal moment in his financial journey, revealing how he turned Rs 3 crore into a staggering Rs 20 crore. Reflecting on simpler times when material comforts were a luxury, he humorously recalled his wife’s longing for an air conditioner as he traveled by bus. Investing his entire Rs 3 crore at 6 pm in the 1989 budget, by 9 pm, Jhunjhunwala’s net worth had soared to Rs 20 crore. Returning home, he informed his wife, Rekha, “We can finally afford the AC.”
Jhunjhunwala’s strategic investments have garnered attention. Ace investor Damani recounted a pivotal moment when Jhunjhunwala seized an opportunity to buy shares of Titan, a decision that proved immensely profitable. Over time, he expanded his holdings, acquiring nearly 5 per cent of the company.
The five key stocks that propelled Jhunjhunwala’s wealth: Titan, Sesa Goa (now Vedanta), Lupin, CRISIL, and Star Health. His knack for identifying promising investments is evident in his early bet on Sesa Goa, where he reaped substantial profits by selling shares acquired during a downturn in the iron ore industry.
Rakesh Jhunjhunwala, often known as India’s Warren Buffett, imparted valuable investing lessons. His success stems from astute stock picks and long-term vision. He emphasised thorough research, he advocated investing in businesses rather than merely trading stocks. Jhunjhunwala underscored the importance of patience, citing it as key to enduring wealth creation. His fearless approach to contrarian bets teaches resilience amid market fluctuations. Jhunjhunwala’s mantra of disciplined risk management resonates, urging investors to diversify and avoid undue speculation.
