Rakesh Jhunjhunwala, an investor with a Midas touch, is often referred to as India’s own Warren Buffet. He is a trader and also a chartered accountant. According to Forbes' Rich List, Jhunjhunwala is the 48th richest man in the country. He is the chairman of Hungama Media and Aptech and sits on the board of directors of firms such as - Viceroy Hotels, Concord Biotech, Provogue India and Geojit Financial Services.
How Rakesh Jhunjhunwala became the Dalal street mogul
Jhunjhunwala started dabbling with the stock market when he was in college. He enrolled at the Institute of Chartered Accountant of India but after attaining the degree, he decided to plunge headlong into the Dalal street. In 1985, Jhunjhunwala invested Rs 5,000 as capital. By September 2018, that capital had inflated to Rs 11,000 crore.
Jhunjhunwala's developed interest in the stock market after listening to his father discuss it with his friends. Quoting his father, Jhunjhunwala said his father told him to read newspapers regularly as it was the news that made stock market fluctuate. While his father allowed him to dabble with the stock market, he refused to give him financial aid and forbade him to ask friends for money.
But Jhunjhunwala was a risk-taker right from the start. He borrowed money from his brother’s clients and promised to return the capital with higher returns compared with bank fixed deposits.
He earned his first big profit in 1986 when he bought 5,000 shares of Tata Tea at Rs 43 and the stock rose to Rs 143 within three months. He earned over three-times profit. In three years he earned 20-25 lakh.
Over the years, Jhunjhunwala successfully invested in Titan, CRISIL, Sesa Goa, Praj Industries, Aurobindo Pharma and NCC.
After the 2008 global recession, his stock prices fell by 30% but he eventually recovered from the loss by 2012.
Rakesh Jhunjhunwala's personal life and education
Jhunjhunwala was born on July 5, 1960. He grew up in Mumbai, where his father was posted as an Income Tax Officer. After graduating from Sydenham College in 1985, he enrolled at the Institute of Chartered Accountant of India. He is married to Rekha Jhunjunwala, who is also a stock market investor.
Jhunjhunwala runs a privately-owned stock trading firm called RARE Enterprises. He has invested in Titan, CRISIL, Aurobindo Pharma, Praj Industries, NCC, Aptech Limited, Ion Exchange, MCX, Fortis Healthcare, Lupin, VIP Industries, Geojit Financial Services, Rallis India, Jubilant Life Sciences, etc.
Rakesh Jhunjhunwala's net worth
Jhunjhunwala is the 48th richest man in India, with a net worth of $3 billion.
His philanthropic portfolio includes nutrition and education. By the year 2020, Jhunjhunwala plans to give away 25 per cent of his wealth to charity. He contributes to St Jude, which runs shelters for cancer-affected children, Agastya International Foundation and Arpan, an entity that helps create awareness among children on sexual exploitation. He also supports Ashoka University, Friends of Tribals Society and Olympic Gold Quest. He is in the process of building an eye hospital in Navi Mumbai, which will perform 15,000 eye surgeries free of cost.