#rakeshjunjunwala #jhunjhunwala #bigbull
Today we lost a great investor, entrepreneur Sir Rakesh Jhunjhunwala, We pay great tribute to him.
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Here we tried to capture his Investment Journey.
Today we lost a great investor, entrepreneur Sir Rakesh Jhunjhunwala, We pay great tribute to him.
๐๐๐
Here we tried to capture his Investment Journey.
- Rakesh Jhunjhunwala was born in a Middle Class family in Mumbai on July 5, 1960.
- His father was an Income tax officer who used to invest in stock market
- Due to the environment at home, RJ built up his interest in stock market
- His father was an Income tax officer who used to invest in stock market
- Due to the environment at home, RJ built up his interest in stock market
- His father used to discuss about the stock market with friends.
- One day Rakesh asked his father that why do these stock prices fluctuates.
- His father explained him that if there is a news about the stock, the price would fluctuate.
- One day Rakesh asked his father that why do these stock prices fluctuates.
- His father explained him that if there is a news about the stock, the price would fluctuate.
- RJ used to observe things related to stocks and wanted to enter the arena.
- But his father told him to be professionally qualified first, before starting anything.
- After completing CA in Jan. 1985, he asked his father to enter stock market & his father permitted him.
- But his father told him to be professionally qualified first, before starting anything.
- After completing CA in Jan. 1985, he asked his father to enter stock market & his father permitted him.
-RJ was a professionally qualified person thus; he had a source to earn for his livelihood, in case if he fails in stock market.
- Initially he had โน5,000 only, but his brother had a client who were looking for good returns.
- Initially he had โน5,000 only, but his brother had a client who were looking for good returns.
- RJ took โน2.5 Lakh from that client and assured her to give better returns than FD.
- After taking the money, RJ started his journey of stock market.
- Now let's take a look over the hits and misses of RJ's journey and learnings from the same.
- After taking the money, RJ started his journey of stock market.
- Now let's take a look over the hits and misses of RJ's journey and learnings from the same.
๐๐ข๐ญ๐ฌ:
- RJ Started his journey by doing trading.
- In 1986, RJ bought 5000 shares of Tata Tea for โน43, within 3 months he sold those stocks at โน143. which gave him 3 times profit.
Learning:- He did trading by analyzing the sentiments, reading the financial statements.
- RJ Started his journey by doing trading.
- In 1986, RJ bought 5000 shares of Tata Tea for โน43, within 3 months he sold those stocks at โน143. which gave him 3 times profit.
Learning:- He did trading by analyzing the sentiments, reading the financial statements.
- During 1986-89, market was in depression but still he stayed invested in the market and put his money in Tata Power and garnered handsome profit of 20-25 Lakhs.
Learning- He didn't loose patience in bad phase of market cycle.
Learning- He didn't loose patience in bad phase of market cycle.
- Next big investment done by him was in Sesa Goa (Currently known as Vedanta)
- The stock was trading dirt cheap against its future growth projections and thesis of investment was that company would report bumper profit next year.
- The stock was trading dirt cheap against its future growth projections and thesis of investment was that company would report bumper profit next year.
- RJ bought 4 lakh shares of Sesa Goa at 25 & sold 2-2.5 lakh shares at 60-65, another one lakh for 150-175 and remaining at 2200, From there he never looked back.
Learning- He bought the stock when people were pessimist about that business, but he found a catch and invested.
Learning- He bought the stock when people were pessimist about that business, but he found a catch and invested.
- In 2002-03, RJ bought Titan shares at โน3 & currently it is trading at a price of over โน2472.
Learning- Not only in Titan, but in various companies he stayed invested during rough patches, due to his conviction in the business and gave sufficient time to business to perform.
Learning- Not only in Titan, but in various companies he stayed invested during rough patches, due to his conviction in the business and gave sufficient time to business to perform.
- RJ never gave up on his love for Tata companies, he held 1% each in Tata Motors with shares worth 1,731 Cr and Tata Comm. valuing โน336 Cr
- His major stock holdings include โน7017 Cr in Star Health, โน2255 Cr in Metro Brand, โน1285 Cr in CRISIL and โน853 Cr in Fortis.
- His major stock holdings include โน7017 Cr in Star Health, โน2255 Cr in Metro Brand, โน1285 Cr in CRISIL and โน853 Cr in Fortis.
๐๐ข๐ฌ๐ฌ๐๐ฌ:
- In 2005, he sold 27 Cr CRISIL shares & bought a flat. Later he sold that & said that flat would have cost โน80 Cr but โIf I would not have sold the CRISIL shares then today its value would be around 800 Cr"
Learning: Never sell your winner too early.
- In 2005, he sold 27 Cr CRISIL shares & bought a flat. Later he sold that & said that flat would have cost โน80 Cr but โIf I would not have sold the CRISIL shares then today its value would be around 800 Cr"
Learning: Never sell your winner too early.
- In 2013, he bought 25 lakh shares of DHFL at โน135.
- In 2018, DHFL found itself at the center of the financial crisis in Indiaโs NBFCs triggered by the collapse of IL&FS.
RJ said that we can't time the market and anything can happen here anytime.
- In 2018, DHFL found itself at the center of the financial crisis in Indiaโs NBFCs triggered by the collapse of IL&FS.
RJ said that we can't time the market and anything can happen here anytime.
- His bet on โBeing Humanโ brand also bombed. He bought around 12.7% stake in the company in 2016 at โน247 and exited when it was trading near โน16 October-December 2021
Learning- He used to take calculated risks only so if anything goes wrong it doesn't impact the portfolio.
Learning- He used to take calculated risks only so if anything goes wrong it doesn't impact the portfolio.
- Currently, He invested ~300 Cr for a 40% stake in the new airline named Akasa.
- People started raising eyebrows over this decision then he replied that I am ready for its failure.
- RJ used to say, "Make a mistake which you can afford"
- People started raising eyebrows over this decision then he replied that I am ready for its failure.
- RJ used to say, "Make a mistake which you can afford"
๐๐ฎ๐ฅ๐ฅ๐ข๐ฌ๐ก ๐จ๐ง ๐๐ง๐๐ข๐
- RJ was always bullish on India, according to him, 2 reasons were there for his belief
โก๏ธSkillset of India's population
โก๏ธFavorable demographics
- RJ said that Indiaโs time has come.
- RJ was always bullish on India, according to him, 2 reasons were there for his belief
โก๏ธSkillset of India's population
โก๏ธFavorable demographics
- RJ said that Indiaโs time has come.
- RJ said, We have More money in Savings A/c than Demat A/c, so if these people would come to market then stocks may give really good returns in future.
- PSU Banks credit will rise & the consequence of that will be an increase in the pricing power of banks.
- PSU Banks credit will rise & the consequence of that will be an increase in the pricing power of banks.
- According to him, โThe reforms of the last few years RERA, GST, the Insolvency & Bankruptcy Code have given us a solid base to take off fromโ
- He believed that his ability to invest in the right asset at the right time had been critical for his success.
- He believed that his ability to invest in the right asset at the right time had been critical for his success.
โฃ RJ once famously said, โMarkets are like women - always commanding, mysterious, unpredictable and volatile.โ
So that is the story of RJ, who always styed bullish and got the name, Big Bull.
Thank You.
So that is the story of RJ, who always styed bullish and got the name, Big Bull.
Thank You.
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