Recently, we have witnessed the sudden demise of the King of Stock Market, Mr Rakesh Jhunjhunwala, due to a cardiac arrest. Today, we will read about how Mr Rakesh Jhunjhunwala made 41000 crores from just Rs5000.
Rakesh Jhunjhunwala was a well-known and wealthy Indian businessman who was an investor, trader, and owner of rare businesses. Rakesh Jhunjhunwala, often known as the "Warren Buffett of India," was India's most well-known and respected investor. He was the 53rd richest person in India today, according to Forbes.
Rakesh Jhunjhunwala was born on July 5, 1960, in Mumbai. His father was an active stock market investor, which affected him. The first time he thought about the stock market was when he asked his father about the reasons for stock price changes. His father said that the flow of news drives price fluctuations.
His story is filled with struggle, beginning with his attempts to increase the funds invested in the stock market. However, he could borrow money and achieve his first profit of $1 million, which he invested in Tata Power. This was his lightbulb moment. He understood that trading was his only way to profit from the stock market. He began trading stocks. His every move was making him richer. Rakesh Jhunjhunwala started with only Rs. 5,000, good investment capital in 1985. Mr Jhunjhunwala stated in one of his interviews that he had little funds to invest in the market. He had to work hard for everything. But the genuine concern was how he got the money to invest. He revealed that he obtained the funds through futures trading.
His strategy talks about being Knowledgeable, Having a great sense of Timing and having Patience.
Not everyone is knowledgeable enough to invest in good stocks and make money. “Markets are about money, but markets are also about knowledge. Markets are also about egos; markets are also about the satisfaction of having been proved right. Especially when that right is from an original thought and not from a guided source or following somebody,” said the big bull Mr Rakesh Jhunjhunwala. With correct and apt knowledge, anyone can make a fortune from the stock market
Timing is the most vital part of the stock market. Mr Rakesh Jhunjhunwala is a master at choosing the correct stock at the appropriate moment. He bought Tata Tea in 1986 for Rs 43 and sold it for Rs 143, making his first significant profit of Rs 0.5 million. This was evidence of his impeccable timing.
And it’s not like he never experienced any downfall in his stock trading journey. In December 2011, the stock market king experienced a 30-year stock market decline. He could have quickly sold his stock under the influence, but his qualities of being patient and believing in his judgment got him far. His patience paid off, and he recovered all his losses in February 2012.
He founded Rakesh Jhunjhunwala Rare Enterprises, an asset management organisation through which he manages his personal portfolio. Rare is the first letter of Rakesh Jhunjhunwala and Rekha Jhunjhunwala. In 2002-2003, he purchased Titan Company shares at an average price of 4.5 rupees per share. Titan stock rose to 80 rupees before falling to 30 rupees after some time. As a result, the value of Rakesh Jhunjhunwala's portfolio fell by nearly 300 crores, yet he did not sell a single share at the price of rupees 30. Because he knew Titan would undoubtedly grow.
Titan shares are currently worth roughly 2000 rupees. In the stock marketing sector, an investor must be patient, and we saw this quality in Rakesh Jhunjhunwala.
Recognizing that stock market trading is a dangerous endeavour, Mr Rakesh Jhunjhunwala was quite aware of this. At times in his life, he struggled to get a sizable income from the market. However, he was aware that if the market rises or moves from a low valuation to an uptrend if we invest appropriately, we are guaranteed to make money. And by doing so earlier than once, he has demonstrated it. Act while an opportunity exists, as the proverb says. Rakesh J will begin pyramiding there if the share is in an uptrend, the momentum is also up trending, and you receive a buy signal for a second time.
Ansh Sharma
A goal-oriented person with interest in financial modelling and trading.
