Rakesh Jhunjhunwala: From Rs 5,000 to Billions, The Inspiring Journey of India’s Big Bull

Who is Rakesh Jhunjhunwala?

Rakesh Jhunjhunwala was a famous investor and chartered accountant. He died on August 14, 2022, in Mumbai at the age of 62. He is often referred to as India's Big Bull. Rakesh Jhunjhunwala's life story is a testament to grit, audacity, and an unwavering belief in India's potential. He is often likened to Warren Buffett. Jhunjhunwala's journey from humble beginnings to a towering figure in the financial world continues to inspire millions.

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Rakesh Jhunjhunwala Education and  Early Life 

Rakesh Jhunjhunwala was born on July 5, 1960, in Mumbai. He grew up in a middle-class family. His father, Radheshyam Jhunjhunwala, was an income tax officer who often discussed stock markets with friends. These conversations sparked young Jhunjhunwala’s curiosity. His father used to encourage him to read newspapers; he quickly grasped how current events influenced market fluctuations. He even sometimes encouraged him to predict the following day and share values; all these things developed a deep interest in him.

Despite his fascination with the stock market, his father made it clear he would not get any financial support from him. This early lesson in independence laid the foundation for his risk-taking spirit. Jhunjhunwala completed his B.Com from Sydenham College of Commerce & Economics, University of Mumbai. Later, he cleared the CA exam and became a Chartered Accountant.

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The First Step: From CA to Dalal Street

Jhunjhunwala pursued a Chartered Accountancy degree in 1985. However, his true calling lay elsewhere. After completing studies, he wanted to invest in the stock market, but his father did not support him financially. His father told everyone (friends, relatives, family members, etc.) not to lend anything to Rakesh. That same year, with just Rs 5,000 in hand, he took his first step into the stock market with the help of his brother. It was a leap of faith, driven by an unshakable belief in his abilities and a vision for India’s economic growth.

Then, his brother helped him and gave him some new clients, but still, people did not believe in a new person in the stock market. Finally, he met a lady who had invested two and a half lakhs. He also got a client who invested 10 lakh, and Rakesh made this 30 lakhs in a year. After this incident, he got a lot of recognition. 

The First Breakthrough: Tata Tea

In 1986, Jhunjhunwala’s boldness bore fruit. He purchased 5,000 shares of Tata Tea at Rs 43 per share. Within three months, the stock price soared to Rs 143, tripling his investment. This marked the beginning of a remarkable journey, during which he earned Rs 20-25 lakh in just three years.

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Rakesh Jhunjhunwala wife

Rakesh Jhunjhunwala married Rekha Jhunjhunwala on 22 February 1987. They have three children. They were blessed with one daughter, Nishtha, on 30 June 2004 and twin sons, Aryaman and Aryaveer, on 2 March 2009. In 1990, His wife asked for an AC in her room, but he said nothing.  During the V.P. Singh government's introduction of the Union Budget, Jhunjhunwala identified a promising market opportunity despite widespread skepticism. 

He observed the developments closely; he boldly invested Rs 3 crore. As the budget announcements unfolded, his calculated risks paid off and significantly increased his net worth. He returned home at 2 PM, and he informed his wife with a smile, "Your air conditioner has arrived."

Building a Legacy: The Midas Touch

Over the years, Jhunjhunwala's knack for identifying winning stocks earned him the moniker of an investor with a "Midas touch." He made substantial investments in companies like Titan, CRISIL, Sesa Goa, Aurobindo Pharma, and NCC, many of which turned into multibaggers. In 2003 Rakesh Jhunjhunwala and his wife Rekha founded a private equity investment and asset management firm, Rare Enterprises.. The firm's name is derived from the first two letters of the couple's names.  Later, it became a powerhouse of wealth creation.

Resilience: Weathering the Storm

The global financial crisis of 2008 tested even the most seasoned investors. Jhunjhunwala’s portfolio took a 30% hit, but his resilience and long-term vision helped him recover by 2012. He remained a steadfast believer in the Indian growth story, often proclaiming that “the mother of all bull runs” was yet to come.

Beyond his financial acumen, Jhunjhunwala was deeply committed to giving back. By 2020, he had pledged to donate 25% of his wealth to charity. He supported causes ranging from education and healthcare to child welfare. Notable initiatives included contributions to St. Jude for cancer-affected children, Agastya International Foundation, and the establishment of a free eye hospital in Navi Mumbai.

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The Entrepreneurial Spirit

Jhunjhunwala’s ambitions extended beyond investing. In his later years, he also founded Akasa Air, which showcased his entrepreneurial spirit and belief in India’s burgeoning aviation market. His ventures were always underpinned by a conviction in India’s potential and the opportunities it offered.

Rakesh Jhunjhunwala Lessons

Jhunjhunwala’s philosophy was as inspiring as his achievements. He often emphasized the importance of learning from mistakes, respecting market dynamics, and taking calculated risks. “When there’s doom and gloom, don’t forget there’s darkness before dawn,” he once said, encapsulating his optimistic outlook.

The Final Chapter and Rakesh Jhunjhunwala Net Worth

On August 14, 2022, India lost one of its brightest financial minds. Jhunjhunwala passed away at the age of 62 due to a cardiac arrest, leaving behind an indelible legacy. At the time of his death, his net worth stood at $5.8 billion, a testament to his incredible journey from Rs 5,000 to billions.

Rakesh Jhunjhunwala's life was a symphony of dreams, risks, and triumphs. He believed in the power of the stock market to create wealth and India's potential to lead the global economy. His journey inspires not just investors but anyone who dares to dream and backs it with relentless effort. Jhunjhunwala's story reminds us that success is not just about financial gains but about leaving a lasting impact on the world.

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Written by Manvi