Who is Rakesh Jhunjhunwala, known as India’s Warren Buffet?

The people of India woke up to a shocking Sunday when news broke out that billionaire stock investor Rakesh Jhunjhunwala died.

Jhunjhunwala, who suffered from multiple health issues, including kidney ailments, had a cardiac arrest. He breathed his last at Breach Candy Hospital in Mumbai city. He was 62.

Just last week on August 7, he launched his low-cost carrier Akasa Air. He was seen on a wheelchair at the launch.

He is arguably one of the most successful stock investors in Indian history as he has a knack for picking the correct stock at the right time. Hence, he is often called India’s Warren Buffet.

His success story inspired millions of Indians who started to view the Indian stock market as another source of investment.

How Jhunjhunwala became the Big Bull?

Jhunjhunwala forayed into the stock market when he was in college. After attaining degree at the Institute of Chartered Accountant of India, he decided to become a full-time investor. In 1985, Jhunjhunwala started with Rs 5,000 ($60 approx.) as capital. By September 2018, that capital had inflated to Rs 110 billion.

Jhunjhunwala said to have developed interest in the stock market after listening to his father, who was an income tax officer, discussing it with his friends.

Quoting his father, Jhunjhunwala once said that he was told 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 prohibited him to ask friends for money.

But Jhunjhunwala believed in taking risks. He borrowed money from his brother’s clients and promised to return the capital with higher returns compared with bank fixed deposits.

His risk-taking appetite paid off as Jhunjhunwala 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 Rs 2 million to Rs 2.5 million.

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

Jhunjhunwala was born in a Rajasthani family on July 5, 1960. His father was posted as an Income Tax Officer. He grew up in Mumbai. He was married to Rekha Jhunjunwala, who is also a stock market investor.

His forefathers hailed from Rajasthan’s Jhunjhunu — the reason behind his surname.

He is survived by his wife and two children.

Jhunjhunwala's investments

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 36th richest man in India, with a net worth of $5.8 billion, at the end of June quarter, according to Forbes.

(With inputs from agencies)

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