InvestmentInvestment Philosphy

Top secrets of Rakesh Jhunjhunwala

Rakesh Jhunjhunwala needs no introduction; he is famous as Warren Buffett of India but he usually like to be called or remembered as Rakes Jhunjhunwala. He is qualified Chartered accountant by profession. He made his first investment when BSE Sensex was at 150 in 1985 with an investment of amount Rs. 5000 and now, his total net worth is more than Rs. 8000 crores. He has asset management firm named Rare Enterprises where he manages his own portfolio as a partner. Many people follow Jhunjhunwala’s portfolio devotedly and if you are interested in his latest stock portfolio then please check it here.

Rakesh jhunjhunwala is certainly ultra-successful share market investor. So obvious question comes to mind what are qualities that makes him successful billionaire investor and made him different from rest of the investors?

Following 5 secretes that make Rakesh Jhunjhunwala a successful billionaire Investor:

(1)   Money:-

It is said that to make money you must have money and in share market it is very much true. To become successful billionaire in share market you would need lot of capital.

Yet, someone with big thinking likes Rakesh Jhunjhunwala who started with small amount of Rs. 5,000 and went to build mountain of wealth has achieved it. He made the money from market itself and reinvested it into the market.

 “I had no capital when I came to the markets, and no father gifts and no father-in-law gifts. So I had to earn the capital to invest. How do you invest if you don’t have the capital? And I got the capital by doing future trading.” – In one of his interview

It should also be noted that in 1985 when he started with Rs. 5,000 can be assumed as good capital for investment according to that time. If someone want to start in today’s time then he or she would need at least 2-3 Lakh as initial capital in stock market.

(2) Right decision at right time:- 

To be successful in share market you need to be selective and have to pick right stock at right time.  Rakesh Jhunjhunwala is leader of that; he picks correct stock at correct time. See an example of this:

In 1986, he bought 5000 shares of Tata Tea at price of Rs. 43 per share and after 3 month only he sold those shares at the price of Rs. 143 per share, which indicates he earned profit of Rs. 5 lakh. After that from 1986 to 1989 he earned around Rs. 20-25 lakh from different shares by investing his earned profit from Tata Tea. But his breakthrough successful bet was Sesa Goa who was in iron mining. He bought 4 lakh shares of Sesa Goa in forward trading, worth Rs 1 crore and sold about 2-2.5 lakh shares at Rs 60-65 and another 1 lakh at Rs 150-175. The balance share he sold at price at Rs 2200.

This purely indicates that from the start he had the quality to select the right stock at the right time. At the same time he has the great quality of when to get out from the share which is very important for an investor.

(3)   Knowledge Bank:-

We all know that in today’s time to be successful you would need relevant experience and skills. Without having knowledge and experience one cannot get good job or establish good business. Same is true in case of investment & stock market. To be successful like Rakesh Jhunjhunwala you should have specific knowledge and skill set.

“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.” – Rakesh Jhunjhunwala

Always remember to be successful in share market you would need to do lot of research, a lot of data gathering and a lot of knowledge accumulation before making investment in stock market.

 (4) Patience:-

This is one of the most important qualities an investor must have. If an investor can control his emotions and have patience only then he might be successful. As market is volatile and it will keep moving upward and downward. At the time of down trend or market crash one should maintain his or her patience, only then he can achieve success. In other words, one should have faith in his or her investment made in shares.

(5) Dream:-

If a person has dream and willpower to achieve those dreams then surely he can do that. It would take time and lot of efforts from his or her part but it’s not impossible. I always believed that if one have dream then it 1000 times worth to go for it and fight all the troubles to achieve it.

 “For those who dare to dream, there is a whole world to win!” – Dhirubhai Ambani

Rakesh Jhunjhunwala is visionary, started with capital of Rs. 5,000 in 1985 and now in 2016 he is worth Rs. 8,000 crores. Without dream it was not possible, he dreamt it and achieving it.

To be successful in any field one must have vision and if you are in share market then you can surely take inspiration from Rakesh Jhunjhunwala.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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