How Rakesh Jhunjhunwala became a billionaire by investing in the Stock Market?
Rakesh Jhunjhunwala is a stock market veteran. Jhunjhunwala is also a certified completed Chartered Accountant (CA) and completed his education in 1985. He started investing at an early age and successfully compounded his wealth to become one of the richest Indian investors.
In 1988 Mr Jhunjhunwala made large investments, the price of which rose to Rs 1200 each and made the asset of the veteran investor double from Rs 2 million to Rs 5.5 million.
In 2002-03, this stock has provided Jhunjhunwala with immense wealth. As of today, the stock is trading at about Rs 930 as compared to an average price of Rs 5 that Mr Jhunjhunwala had bought the stock at. Rakesh Jhunjhunwala believes that his greatest knowledge in the market has been making mistakes and learning from them
Mr Jhunjhunwala believes in the concept of long-term investing and has been holding the stock. Once he is sure about a stock, he buys the company in huge numbers, as in the case with Titan Ltd. and many other stocks. Mr Jhunjhunwala on his investing career he searched for many multi-bagger stocks like CRISIL, RAJ INDUSTRIES, LUPIN, TITAN etc.
What is Rakesh Jhunjhunwala Investment strategy?
Rakesh Jhunjhunwala portfolio is generally followed on Dalal Street. Most of the Investors look forward to analysing each quarter as to where he has reduced or increased stake.
If you have just started investing in the stock market, it is advisable to take a look at his investment philosophy as it can be very beneficial. It answers all your questions & doubts about how to invest in the stock market and get rich quick.
Here are Rakesh Jhunjhunwala’s five important investment lessons that you must know before investing.
Choose a company with strong management
The most crucial aspect of investing in a particular company is managed. The people who are running the company must be honest and should not hide any important information. The management of a company should maintain transparency to its shareholders even at a time the company goes through a crisis.
While the management of many companies are being transparent, not all companies are successful. Before making an investment decision, it is recommended to look into the balance sheets of the last few years to determine if the company has been on the growth path consistently or not.
Do not panic with Debts
One vital rule of investing in the stock market is staying away from companies with heavy debt. His investment in debt-laden Jaiprakash Associates has become the talk of the town. He believes the company might be under debt, but its strong business balances the debt factor. So, debt in itself is not bad but only if other investment logic stands high.
For Rakesh Jhunjhunwala, buying a stock at the right price is important. Now, when most of the stock market experts are recommending to invest in IT stocks, Jhunjhunwala is against it, as IT stocks are trading at rich valuations. On the other hand, he is bullish on banking stocks.
Invest in business not stocks
Another important lesson that Rakesh Jhunjhunwala addresses is never to buy the stock, but it’s business. It is essential to know the business the company is into. It is not recommended to buy stocks of the firms involved in multiple businesses.
Rakesh Jhunjhunwala Portfolio
Let’s take a look at the latest Rakesh Jhunjhunwala Portfolio as per his filings at stock exchanges. You can know what Rakesh Jhunjhunwala is buying and selling here
|Number||Stock Name||Holder Name||Current Price||Quantity Held||Holding Percentage||Change from previous Qtr||Holding Value|
|1||Aptech Ltd.||Jhunjhunwala Rakesh Radheshyam & Jhunjhunwala Rekha Rakesh||103.3||9668840||0.2401||-0.23||99.9 Cr|
|2||The Mandhana Retail Ventures Ltd.||Jhunjhunwala Rakesh Radheshyam||9.9||2813274||0.1274||0||2.8 Cr|
|3||NCC Ltd.||Rekha Jhunjhunwala & Rakesh Jhunjhunwala||32.2||62333266||0.1022||-0.16||200.7 Cr|
|4||Rallis India Ltd.||Rakesh Radheshyam Jhunjhunwala||267.5||19305820||0.0993||0.14||516.4 Cr|
|5||Bilcare Ltd.||Jhunjhunwala Rakesh Radheshyam & Jhunjhunwala Rekha Rakesh||52.6||1997925||0.0848||0||10.5 Cr|
|6||Geojit Financial Services Ltd.||Jhunjhunwala Rakesh Radheshyam||29.1||18037500||0.0757||0||52.5 Cr|
|7||Escorts Ltd.||Rakesh Jhunjhunwala||996.45||9100000||0.0742||-0.31||906.8 Cr|
|8||Delta Corp Ltd.||Jhunjhunwala Rakesh Radheshyam & Jhunjhunwala Rekha Rakesh||92.6||20000000||0.0738||0||185.2 Cr|
|9||Agro Tech Foods Ltd.||Rekha Jhunjhunwala & Rakesh Jhunjhunwala||519.95||1399559||0.0575||-1.66||72.8 Cr|
|10||Titan Company Ltd.||Jhunjhunwala Rakesh Radheshyam & Jhunjhunwala Rekha Rakesh||987.5||49050970||0.0553||-1.16||4,843.8 Cr|
|11||Crisil Ltd.||Jhunjhunwala Rakesh Radheshyam & Jhunjhunwala Rekha Rakesh||1604.85||3975000||0.0549||0.01||637.9 Cr|
|12||VIP Industries Ltd.||Rakesh Jhunjhunwala & Rakesh Jhunjhunwala||265.5||7500400||0.0531||0.2||199.1 Cr|
|13||Ion Exchange (India) Ltd.||Rakesh Jhunjhunwala & Jhunjhunwala Rakesh Radheshyam||740.1||775000||0.0529||0||57.4 Cr|
|14||Jubilant Life Sciences Ltd.||Rakesh Radheshyam Jhunjhunwala||661.1||7025000||0.0441||0.96||464.4 Cr|
|15||Karur Vysya Bank Ltd.||Jhunjhunwala Rakesh Radheshyam||33.5||33583516||0.042||0||112.5 Cr|
|16||Multi Commodity Exchange of India Ltd.||Jhunjhunwala Rakesh Radheshyam||1223||2000000||0.0392||0||244.6 Cr|
|17||Anant Raj Ltd.||Jhunjhunwala Rakesh Radheshyam||23.6||10000000||0.0339||0||23.6 Cr|
|18||Federal Bank Ltd.||Rakesh Jhunjhunwala||52.85||60321060||0.0308||0.18||318.8 Cr|
|19||Fortis Healthcare Ltd.||Rakesh Jhunjhunwala||125.6||20000000||0.0265||0||251.2 Cr|
|20||TV18 Broadcast Ltd.||Jhunjhunwala Rekha Rakesh||36.3||35560000||0.0207||-0.24||129.1 Cr|
|21||D B Realty Ltd.||Jhunjhunwala Rekha Rakesh||7.8||5000000||0.0206||0||3.9 Cr|
|22||Firstsource Solutions Ltd.||Rakesh Jhunjhunwala||39.6||14300000||0.0206||-0.72||56.6 Cr|
|23||Prozone Intu Properties Ltd.||Rakesh Jhunjhunwala||21||3150000||0.0206||0||6.6 Cr|
|24||Prakash Pipes Ltd.||Jhunjunwala Rakesh Radheshyam||57.65||312500||0.0153||0||1.8 Cr|
|25||Lupin Ltd.||Rakesh Jhunjhunwala||938||6845605||0.0151||-0.02||642.1 Cr|
|26||Prakash Industries Ltd.||Jhunjhunwala Rakesh Radheshyam||37.45||2500000||0.0146||0.06||9.4 Cr|
|27||GMR Infrastructure Ltd.||Jhunjhunwala Rakesh Radheshyam||20.75||85000000||0.0141||NEW||176.4 Cr|
|28||Orient Cement Ltd.||Jhunjhunwala Rakesh Radhesham||74.75||2500000||0.0122||0.05||18.7 Cr|
|29||Man Infraconstruction Ltd.||Jhunjhunwala Rakesh Radheshyam||21||3000000||0.0121||0||6.3 Cr|
|30||Edelweiss Financial Services Ltd.||Jhunjhunwala Rakesh Radheshyam||54.3||9690000||0.0104||0||52.6 Cr|