Rakesh Jhunjhunwala’s rise from a stipend of Rs 60 to above Rs 10,000 crore portfolio
Investment maestro–Rakesh Jhunjhunwala, whose portfolio value tops Rs 10,000 crore as on date started out with a meagre Rs 60 as stipend.Rakesh Jhunjhunwala started investing in the markets the Sensex was at a mere 150! It closed at 32,432 points on Friday. (Image: Reuters)
Investment maestro Rakesh Jhunjhunwala, whose portfolio value tops Rs 10,000 crore as on date started out with a meagre Rs 60 as stipend. In an interview to CNBC TV18 last week, Rakesh Jhunjhunwala said, in response to how much stipend he got in the beginning, “I got Rs 60 in the first year, Rs 80 next and then Rs 90.” Often referred to as India’s Warren Buffett, Rakesh Jhunjhunwala started investing in the markets the Sensex was at a mere 150! It closed at 32,432 points on Friday.
How did he get into investing in the markets? “My father was also interested in stocks. When I was a young child, he and his friends would drink in the evening and discuss about the stock market. I would listen to them and one day I asked him why do these prices fluctuate. He told me to check if there is a news item on Gwalior Rayon in the newspaper, and if there was Gwalior Rayon’s price would fluctuate the next day,” Rakesh Jhunjhunwala revealed in an interview to ET Now in 2009.
In last week’s interview with CNBC TV18, the big bull-Rakesh Jhunjhunwala says that Tata Tea was the first stock in which he made a killing. “ The first stock I bought was Tata Tea, the first stock where I made big money was also Tata Tea.” Rakesh Jhunjhunwala had bought 5,000 shares of Tata Tea at Rs 43 each. Within three months time, he sold the shares at Rs 143, making a profit of Rs 5,00,000. He didn’t’ stop there! “I invested Rs 5 lakh at that point in time back in 1985 (in Tata Tea) which is worth Rs 50 crore now,” Rakesh Jhunjhunwala told the channel last week.Titan is another success story of the ace investor. Interestingly, he bought 6 crore shares of Titan in 2002-03 at an average price of around Rs 3, according to media reports. On Friday, Titan Ltd closed at Rs 623 on NSE. Rakesh Jhunjhunwala held more than 8.3% stake in Titan Ltd, translating to more than 804 lakh shares as at the end of June 2017. A Tata enterprise stock, Titan is one of the most prominent stocks in the Rs 10,000 crore portfolio of the investing icon as at March 31st 2017, which accounted for Rs 3,644 crores then.
What sets him apart. “Ability to take risk,” says Rakesh Jhunjhunwala. “One thing which keeps me apart is that I have got guts. I may have Rs 1,000 in my bank but if I think the deal is worth a crore – I will do it. I have guts and setbacks don’t put me off. I feel them for 10 minutes but then I am ready to fight back,” Rakesh Jhunjhunwala said in the same interview last week.