How this person turned Rs. 5,000 to Rs. 9,000 Crores in Stock Markets, You can do it too !!

 

Rakesh Jhunjhunwala is the name that needs no introduction when it comes to Indian Stock markets. The legendary investor who is known as the "Warren Buffet of India" is an ideal for every Indian investor. Lets pour some light on  his journey from a mere Rs. 5000  to Rs. 9,000 Crore.

   



                                                                                                 

Rakesh Jhunjhunwala was born on 5th July 1960. By profession his father was an Income tax officer. From childhood Rakesh had an inclination towards Stock markets as his father also used to deal in stock markets with his friends. Rakesh in his early days had an insatiable desire to know about behaviour of stock markets and beholding this he once asked his father why the prices of stocks fluctuates . His father told him that when there is some news about the stock, it makes the stock price to fluctuate. Rakesh Jhunjhunwala learned his first lesson this way. Knowing all this , he started to develop  great attraction towards stock markets and then he decided to invest in stocks. Before entering into stock markets, Rakesh took up chartered accountancy and completed his CA in 1985.

After completing the CA he told his father that he wanted to go into the stock market. His father told hime to not to borrow any money from him or any of his friends.  Rakesh at that time had only Rs. 5000 to invest in stock markets.. He started his investment career in 1985 when the BSE Sensex was at 150. He made his first big profit of 5 lakh Rupees in 1986 when he sold 5,000 shares of Tata Tea at a price of Rs 143 which he had purchased for Rs 43 a share just 3 months prior. Between 1986 and 1989 he earned Rs 20-25 Lakh Rupees. His first major successful investment was iron mining company Sesa Goa(go renamed to Sesa Sterlite, now it is Vedanta Ltd.). He bought 4,00,000 shares of Sesa Goa in forward trading, worth Rs 10 million rupees and sold about 250,000 shares at Rs 60–65 and another 100,000 at Rs 150–175. The price rose to Rs 2200 and he sold some shares.




Jhunjhunwala bought 6 crore shares of  Titan in 2002-03 at an average price of around Rs 3. The stock is currently trading at 360 Rs level and his investment value is now over 2100 crore, which made around Rs. 35 Lakh per hour for him.  In 2006 he bought Lupin around 150 Rs which is now trading at 1100 levels.  He bought Crisil around 200-300 levels which is now at 1800. Likewise, there are so many stocks in his portfolio that made huge money for him.

Rakesh Jhunjhunwala's Investing Mantra : 

Rakesh Jhunjhunwala believes that their are no failures in life, everything is to learn. The mistakes he made during his early years of investing made him learn and become a better investor.  He also says. “Markets are supreme, one should learn to admit his/her mistake and take a lesson from it. To succeed in the stock market, one should not blame others for his/her failures. For eg. If a stock doesn't performs you should not blame promoters of the company but to blame yourself. You should take sole responsibility of your decisions and learn from your mistakes.The promoter is what he is. Rakesh Jhunjhunwala also says that sometimes he took calculated risks by making money through trading and then investing that money in stocks.

His Stance on India’s Growth story :

Rakesh Jhunjhunwala says he is very bullish on the country growth since he entered the stock market. He insists the Indian economy will grow by 9-10 percent, though that may need a transition of two to three years. Jhunjhunwala’s thesis is that Indians will save $1 trillion a year, and even if 10 percent of that money—$100 billion —flows into the markets, there will be a tsunami on the bourses. “So I remain bullish that, for the next 20 years, we could see a bull run like the one Wall Street had from 1987.”

Rakesh Jhunjhunwala's Portfolio :




Stock Name Holding % Number of shares(in lakhs) Current Value
A2Z 10.1 74.25 11
Adinath Exim 4.05 1.66
Agro Tech 4.73 11.54 62
Aurobindo Pharma 1.03 30.3 211
Autoline Indus 5.95 7.31 7
Autoline Indus 4.23 5.2 5
Bilcare 7.37 17.35 15
DB Realy 1.03 1.03 25 26
Delta Corp 3.52 80 78
Dewan housing 3.97 51 167
Escort 5.47 67 96
FSL 3.79 250 90
Geojit 7.88 180 72
Geometric 17.74 112.61 155
HindoilExploration 1.5 19.61 13
Hinduja Global 1.09 2.25 12
Ion Exchange 6.02 8.75 16
Kesoram Indus 6.83 75 70
Lupin 1.65 73.91 7388
NCC 9.59 246.08 175
NCC 1.95 50 36
Pipavav defense 1.36 100 65
Praj Industries 6.99 124.04 87
Prime Focus 2.73 50.7 20
Prozone Capital 2.46 37.5 8
Radico Khaitan 1.5 19.97 24
SpiceJet 1.87 100 18
Titan 6.95 616.73 1990
tv18 1.47 252.1 81
Viceroy Hotels 13.46 57.08 13
VIP Indus 8.84 124.91 175

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