By PIB Mumbai – Photo, GODL-India, Source, Wikimedia Commons
Rakesh Jhunjhunwala was born on July 5, 1960, in Hyderabad, India, into a middle-class Rajasthani family. His father was an income tax officer, and discussions about financial markets were common in their household. Jhunjhunwala's early interest in the stock market was piqued by his father's habit of following market trends and news regularly. He pursued a commerce degree at Sydenham College in Mumbai and later became a Chartered Accountant from the Institute of Chartered Accountants of India (ICAI) in 1985.
It was during his college years that Rakesh began to seriously think about investing. Unlike most of his peers who sought conventional job security, he dreamed of creating wealth through the stock market. He started his investing journey with a capital of just ₹5,000, which he borrowed from his brother, promising to return it with higher returns than a fixed deposit.
Rakesh Jhunjhunwala entered the stock market in 1985, when the Sensex was around 150. His first big profit came in 1986 when he bought 5,000 shares of Tata Tea at ₹43 and sold them at ₹143 within a few months, making a profit of over ₹3 lakh. This was a turning point in his investing journey and gave him the confidence to go big.
In the early 1990s, Jhunjhunwala started collaborating with RARE Enterprises (named after his and his wife Rekha’s initials) and began investing in undervalued stocks that had strong fundamentals. His biggest bets were often on companies where he saw future potential before others did. Examples include Titan Company, CRISIL, Lupin, and NCC, which multiplied his investments several times over.
He also partnered with several other legendary investors and market operators like Radhakishan Damani. His friendships, especially with Damani, were based on mutual respect and a shared philosophy of long-term investing. Together, they weathered major market downturns including the Harshad Mehta scam era and emerged even stronger.
Jhunjhunwala believed in value investing, heavily inspired by Warren Buffett, but with an Indian twist. He often said, "I am not a clone of Buffett. I like to take more risks. I enjoy the excitement of the market." His investing style was a mix of long-term fundamental investing and short-term trading.
He contributed immensely to investor education in India, often appearing in interviews, seminars, and events to share his views and motivate young investors. He believed in India’s growth story and was extremely bullish on the long-term prospects of the Indian economy.
His ability to spot multibagger stocks became legendary. For instance, he bought Titan shares when they were under ₹5. By 2022, those shares were trading above ₹2,400, making him one of the biggest individual shareholders in the company.
Rakesh Jhunjhunwala passed away on August 14, 2022, but his legacy continues to inspire millions. He changed the perception of investing in India. At a time when the stock market was considered gambling by many, he showed that with discipline, patience, and research, investing could create massive wealth.
He mentored many young investors and was known for his humility despite his massive success. His contributions went beyond finance; he was also a philanthropist, contributing to healthcare and education through his foundation.
His life was celebrated as a story of conviction, optimism, and resilience. His popular quotes include:
Rakesh Jhunjhunwala’s life was a fascinating blend of strategic investing, sharp business sense, and fearless trading. While many investors avoid trading, he embraced it as part of his arsenal. He often mentioned that trading gave him liquidity and confidence to hold his long-term bets.
One of his classic trades was during the 2001 market crash after the Ketan Parekh scam. When everyone was fearful, he bought aggressively. Later, when the market rebounded, his portfolio skyrocketed. He believed in the mantra: "Be greedy when others are fearful."
Another famous move was in the early 2000s when he invested heavily in PSU banks and select pharma stocks. His calculated risk-taking and deep understanding of market cycles helped him profit when the rest of the market was cautious.
He wasn’t afraid of making mistakes either. He lost money on several stocks but took each loss as a lesson. In interviews, he openly discussed failures like DHFL and emphasized that acknowledging losses is key to growth. "Losses are part of the game. The key is to keep your winners riding and cut your losers early," he once said.
Beyond trading, his dream project was Akasa Air. Despite health issues, he poured resources into building the airline, showing his belief in India's aviation future. "I see a lot of people traveling by air in the next decade. I want to be part of that journey," he had said. Akasa Air started operations in 2022, just weeks before his passing.
He also diversified into private equity and startups, supporting Indian entrepreneurship. His family office invested in companies across sectors like fintech, health, and education, aiming to back the next generation of Indian innovation.
Despite his wealth, he remained grounded. He loved Indian food, cricket, and political debates. He maintained close friendships with market veterans and always shared his knowledge generously. To many, he wasn't just an investor—he was a guru, a mentor, and a symbol of India’s economic spirit.
Rakesh Jhunjhunwala's legacy will live on through the investors he inspired, the wealth he created, and the businesses he believed in. His life is a testament to the power of vision, courage, and relentless belief in oneself and one's country.