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Thursday, December 8, 2022

Inspiring story of Rakesh Jhunjhunwala: The Big Bull of India

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Rakesh Jhunjhunwala was regarded as “India’s Warren Buffett” or the “Big Bull of India” for his stock market forecasts and positive outlooks. Jhunjhunwala died on August 14, 2022, at the age of 62.

Rakesh Jhunjhunwala, sometimes known as the Warren Buffet of the Indian Stock Market, was an Indian stock trader who built his wealth through the stock market. He was also called the  “Great Bull of Dallal Street”  or the “Big Bull of India.”

Jhunjhunwala’s attitude toward the stock market was spectacular, since every Indian associates his name with the Indian stock market. Apart from equities, Rakesh’s net worth comprised several commercial enterprises, including aircraft, the media sector, and pharmaceuticals.

Rakesh Jhunjhunwala was born on July 5, 1962, in a Rajasthani Marwari family. During his studies, Jhunjhunwala gained a distinct perspective on the stock market.

He elaborated on his father’s strategy, advising young Rakesh that “investment should be from market earnings rather than any other external source.”

Rakesh was able to invest his first 5,000 shares in 1985. He gained a handsome profit of 5 lakhs from the Tata Tea shares within a year, until 1986.

Later, in an essay, Jhunjhunwala defined his initial money source as a cost procurement from his brother’s customer, which he had got for his promise of better returns than fixed deposits.

The money was eventually invested in Tata Tea stocks, which surged approximately 43-143 Rs in three months, making him significant gains. Jhunjhunwala has had several stock market misses, where he lost a lot of money.

Rakesh’s other missed opportunities include Mandhana Retail, DB Reality, and Private Equity.

Jhunjhunwala was also probed for insider trading by SEBI in July 2021, and he and his colleagues were fined a total of 35 crores.

Rakesh Jhunjhunwala believed that in order to master the markets, one needs learn from prior mistakes and try to blame themselves rather than other circumstances.

He described the promoters as nothing more than themselves and never criticized them.

Rakesh’s Rs3 investment in the Titan corporation propelled him to the top of the stock market.

According to his portfolio, he was Titan’s largest shareholder until his death.Those penny shares cost him roughly 11000 crores.

Jhunjhunwala acknowledged Tata for his success and is a shareholder in the majority of its businesses.

Jhunjhunwala’s successful investments included multi-bagger equities such as Sesa Goa, CRISIL, Praj Industries, Aurobindo Pharma, and NCC.

He made over 20,000 crores through his stock investments. Jhunjhunwala also believed that there are no shortcuts to success and that in order to be a great investor, one must gather information from all sources.

At the time of his death, Jhunjhunwala was the 36th richest man in India and 438th in the world, according to Forbes, with a net worth of $5.8 billion.

In response to new fashionable businesses, Jhunjhunwala noted that they are driven by valuation rather than positive cash flows.

He believed that cryptocurrency will never be a currency, leading to its demise one day.

He described it as “very fluctuating and erratic” since “it may be procured by anybody rather than a regulated agency.” Apart from stocks, Rakesh Jhunjhunwala was involved in a number of other notable business enterprises.

Rakesh Jhunjhunwala started Akasa Air, also known as Akasa Airlines. The firm started its inaugural flying service between Mumbai and Ahmedabad, using the Boeing 737 Max aircraft.

Hungama Digital Media, headquartered in Mumbai, is an online digital entertainment firm best known for its Bollywood movies, web series, music, and animation.

Rakesh Jhunjhunwala, Neeraj Roy, Hiren Ved, Lashit Sanghvi, and Ashish Kacholia founded the firm.

Rakesh Jhunjhunwala, as a bull, had a massive philanthropy portfolio that includes nutrition and education charities.

He donated to various organisations that help cancer-affected children and raise awareness about sexual exploitation among minors. Rakesh also served on the boards of various educational institutions, including Ashoka University, Friends of Tribal Society, and Olympic Gold Quest.

In the healthcare charity sector, he ran an eye care facility in Navi Mumbai that conducted around 15,000 free eye procedures.

Jhunjhunwala died on August 14th due to renal issues and other severe multiple organ failures. Many celebrities expressed their sympathies, citing his funny, full-of-life attitude.

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