This is a story of Rakesh Jhunjunvala and how he turned a mere 5000 rupees into a massive 20,000 crore.
Rakesh Jhunjunvala wala is arguably the king of Indian stock market, his success has inspired millions of Indians to participate in the Indian stock market and his story is now a case study in almost every business school, and why not, he’s one of the richest men around with Forbes ranking him number 61st in the list of richest people in India, in 2018, and what makes us more impressive is the fact that Mr Julian Villa was not born into an influential families, like that of Tatas, or last or monies, he is a self made billionaire who some even called big bull, or what.Here is a stock market success story of rakesh jhunjhunwala
He turned a mere 5000 rupees into a massive 20,000 crore rupees bracket so Nicola is arguably the king of Indian stock market, his success has inspired millions of Indians to participate in the Indian stock market and his story is now a case study in almost every business school, and why not, he’s one of the richest men around with Forbes ranking him number 61st in the list of richest people in India, in 2018, and what makes us more impressive is the fact that Mr. Jordan Vala was not born into an influential families, like that of Tatas or bear last or money’s. He’s a self made billionaire for some even called big bull, or Warren Buffett of India. So what makes this man special, and more importantly, what is that you and I can learn from his success for that. Let’s start from the beginning his childhood. Rakesh was born in 1965 in a middle class family. His father was an income tax officer, and his mother was a housewife. His father was interested in stocks though he was not an active trader.
When Rakesh was a young child, he would listen to his father and his friends discuss about stock market and he would listen to them very carefully, one day, out of curiosity, he asked his father a very perceptive question, Why do the stock prices fluctuate on a daily basis. This is a very perceptive question for a nine year old kid. So, instead of giving any complex explanations his father told him a very simple answer that why don’t they go check the news on a company called qualia Ray on in the newspaper, if there is any news about the company, the stock prices will fluctuate The next day, and that’s exactly what happened. So in this way, young Rakesh got fascinated with the stock market and learned a lot from his father’s detailed explanations, his father knew that Rakesh was destined to go.
The stock market, but he advised that do whatever you want to do in life but at least get professionally qualified so Rakesh completed his graduation from Mumbai signum college took up chartered accountant seat and became a chartered accountant in 1985. After finishing his studies, Marcus told his father he wanted to go to the stock market. His father knew that this was going to happen. So, even though he was reluctant at first he encouraged Rakesh to pursue his dreams, but just kept one condition that don’t ask for money from me and my friends. I think it takes a lot of heart for a father to encourage his kids to pursue their dreams, despite having his personal objections, I think at the back of their mind was the fact that if nothing works out that cash could always go back to his car practice, and this sense of security gave Rakesh the courage to do what he did next. Here is where he started his stock market journey. So rocky shifted to the financial capital of India, Mumbai, with his brother who was also a practising chartered accountant himself.
The biggest challenge in front of Rakesh was that he had no money to invest, or trade. After all, making money from stock requires money, and he only had 5000 rupees in his account, and he didn’t have the option of borrowing money from his friends or family,but he got his first lucky break through his brother, who introduced Rakesh to a lady who was willing to loan, two and a half lakh rupees provided a good answer decent returns on them later he got another client, through his brother’s reference, who loaned him another five lakh rupees. So now, Mr Chandan Wallah had seven and a half lakh rupees to get started, November, seven and a half lakh rupees may not look like a big amount today, but we are talking about 1955 years. So in today’s term, it would be equivalent to having about 30 to 40 lakh rupees. So, the first hurdle was crossed Rakesh now had the money.
The question was, what exactly was he going to do with that money, he actively started looking for trading opportunities in the market. Yes, the investor, that we know and admire today actually started out as a trader, not an investor. He made his first big profit in Tata tea, a stock that he bought for 43 rupees, and which shot up to 143 rupees within a matter of three months, so by taking some very astute trades between 1986 to 1989.
Mr Jensen voila, earned about 20 to 25 lakh rupees and his net worth went up to 50 lakh rupees. I struggled for the next couple of years, but then he got the next major breakthrough of his career, he saw a great opportunity in a company called Sisa Cova, which is now part of the Vedanta group, there was a depression in the iron ore industry and the stock of the saga was trading at a very discounted price of 24 to 25 rupees. Stock market success story.
Mr Rakesh Jhunjunvala saw a huge opportunity in this and valued stock and bought one crore worth, which he later sold at three to five times higher prices. This single trade catapulted his network to two and a half crores. But the best was yet to come. In 1989, there was a lot of pessimism in the stock market regarding the budget that was going to be presented by VP Singh’s government.
The market had significantly corrected before the budget, because it was assumed broadly, that it would not be a business friendly budget. But Mr Chanin molars gut instinct told him that Mr VP Singh who basically comes from a business background himself would never present a budget that will be bad for the business. So, what did you do at the time that everybody was pessimistic, Mr chindan Walla bought aggressively, and his instincts turned out to be right, the budget turned out to be business friendly and the market rallied so heavily that in the next few months Mr Jinjin wireless network went up, 20 times from two and a half crores 250 crores.Stock market success story.
This one event inspires me the most about Rakesh Indian valance journey that not only he had good breeding instincts, but he also had the guts to go big on there, so it’s not sufficient that you can spot good trading opportunities, you should also have the confidence to move decisively on those instincts, and that’s what differentiates men from boys, before moving on, let’s pause here to absorb another fact that it is not investing rather trading that earned him the capital to become a billionaire in future. So he started with trading to generate the capital, and later on switch to investing to multiply that capital. In other words,
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For generating the capital and investing for long term wealth. Later in his career, Mr Rakesh Jhunjunvala started his own investment company called rare enterprises and the name rare basically comes from initial two letters of Rakesh and the two
Letters of his wife, break up.So from here onwards, trading took a backseats was slowly shifted towards investing, over the years he has made some really profitable companies like Titan ,Lupin a kressel and prod industries as several other companies with.
I understand that not every investment that message and inviolable in fact he has incurred significant losses in investments, such as Montana retail ventures l God financials and whole lot of companies, but what sets Mr. Johnson Well, apart from other regular investors, is that he’s not easily scared by short term volatility in the stock market. He’s very careful in analysing the fundamentals of the company, and until the fundamentals of the company are intact. It doesn’t care whether the stock goes up or down his philosophy is that over a period of time, some stocks will underperform and some stocks will over perform it India’s growth story has just begun. And eventually, every patient investor will make money.