How did Rakesh Jhunjhunwala become a billionaire with just a few Rs 1000?

The King of the Stock Market, India’s Warren Buffett, and The Big Bull of Dalal Street all carry names by The investor Rakesh Jhunjhunwala. According to Forbes 2022, the net worth of Investor Rakesh Jhunjhunwala is 5.1 Billion, which is equal to Rs 40,000 Crore.

As a regular man, he owns such a big amount, from a few thousand rupees to a billion. Rakesh Jhunjhunwala’s success story inspires the Indian people who want to share the market.

In this article, we will discuss the life of Mr. Rakesh Jhunjhunwala’s success story from thousands he made over Rs 40,000 Crores.

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Childhood of Rakesh Jhunjhunwala

Rakesh Jhunjhunwala is the Warren Buffett of India, born on 5th July 1960 in Mumbai; his father was the Income Tax Officer.

His interest in the share market developed after hearing from his father about it; one day, in curiosity, he asked his father how the stock price fluctuates daily, then his father suggested he read the newspaper.

As a child, he was interested in the Share market and wanted to pursue a career in the stock

market. He did his graduation from Sydenham College in 1985 as a chartered accountant.

After completing graduation, he started investing in the stock market.

Entering the Stock Market World

Mr. Rakesh Jhunjhunwala entered the stock market with just Rs 5,000 in 1985. At that period, the Sensex was 150 points. He managed to take Rs 2.5 lakh from his brother’s clients by promising higher returns than the fixed deposits.

As his big first profit was Rs 0.5 million in 1986, he bought 5,000 shares of Tata tea at Rs 43, and within 3 months, it was trading at Rs 143; he made a profit over 3 times by selling the stock of Tata tea.

Between the years 1986 to 1989, he made a large investment in blue chip stock companies, including Tata Power Ltd, for which prices rose to Rs 1200 each, and the investor’s assets doubled.

He also invested in Praj Industries Ltd, an Indian ethanol Plant sector stock. He bought it at 5,500 points and sold it at Rs 12,000, which resulted in a stock appreciation of almost 250 percent.

Stocks of Lt Rakesh Jhunjhunwala in 2022

Key features to learn from  Rakesh Jhunjhunwala?

1. Long term Perspective
2. Analysis and Research
3. Patience
4. Believe in Yourself
5. Be ready for Volatility

Long-term perspective: While investing in the stock market, one should always focus on the long-term rather than a short-term investment.

Analysis and Research: Before investing in stocks, one should do solid research on the companies that have grown in the long term.

Patience: As an investor, you should not be impulsive. Be patient and make good movements.

Believe in yourself: As in the stock market, it’s a risk factor one should do proper research and analysis through which one can believe in themself.

Be ready for Volatility: The stock market is volatile, so you should not get panic, make a decision, be patient, and make a good move.

Conclusion

There are a lot of Indian investors in the market, but Rakesh Jhunjhunwala’s journey as been the most inspiring for a youngster who wants to start there investment in stocks.