Lessons in investing, as told through the financial journey of Rakesh Jhunjhunwala, who rose from an initial investment of Rs 5,000 to become Dalal Street's Big Bull.
Rakesh Jhunjhunwala: The "Big Bull" of Dalal Street
Rakesh Jhunjhunwala, fondly known as the "Big Bull of Dalal Street," embarked on his investment journey in the mid-1980s. Born on July 5, 1960, in Mumbai, Jhunjhunwala's fascination with the stock market was ignited by his father, an Income Tax officer.
Jhunjhunwala's first significant investment was buying 5,000 shares of Tata Tea at Rs 43 each. Within three months, the stock of Tata Tea had risen to Rs 143, netting Jhunjhunwala approximately Rs 5 lakh. This early success served as a catalyst for his investment career.
Throughout the 1980s, Jhunjhunwala made strategic investments in companies such as Tata Power and Sesa Goa, which significantly strengthened his capital base. In 1986, he raised additional capital through short-term loans from acquaintances. After qualifying as a Chartered Accountant in 1985, Jhunjhunwala chose to enter the equity markets.
One of Jhunjhunwala's most famous investments was Titan Company, initially purchased during a time of declining profits and industry headwinds. By 2025, his holding in Titan Company was valued at over Rs 15,000 crore, delivering returns exceeding 10,000%.
In 2021, Jhunjhunwala co-founded Akasa Air with an initial $35 million investment for a 40% stake. Within a year of operations, Akasa Air became the fastest-growing globally.
Jhunjhunwala's firm, RARE Enterprises, had a diversified portfolio across consumer goods, financial services, healthcare, and infrastructure. Notable holdings included Star Health, CRISIL, Metro Brands, and Tata Motors.
Posthumously, Jhunjhunwala was awarded the Padma Shri in 2023. His philanthropic efforts were significant, with Jhunjhunwala pledging 25% of his wealth to supporting causes in education and healthcare.
After his passing, his estate has begun strategically divesting some positions, such as in Nazara Technologies, which delivered a four-fold return on their original investment. Jhunjhunwala's overall investment approach was a mix of value investing and identifying growth potential early in companies.
By the time of his death, the Sensex, where Jhunjhunwala's investments were primarily focused, had risen from around 150 points at the start of his career to over 59,000. This incredible growth is a testament to Jhunjhunwala's investment acumen and his significant impact on the Indian stock market.
References:
[1] Moneycontrol. (2022, August 31). Rakesh Jhunjhunwala's estate sells entire stake in Nazara Technologies. Moneycontrol. https://www.moneycontrol.com/news/business/stocks/rakesh-jhunjhunwala-sells-entire-stake-in-nazara-technologies-770-cr-profit-7447311.html
[2] Livemint. (2022, August 14). Rakesh Jhunjhunwala: The man who made millions from Tata Tea, Titan, and Akasa Air. Livemint. https://www.livemint.com/news/india/rakesh-jhunjhunwala-the-man-who-made-millions-from-tata-tea-titan-and-akasa-air-11660747624572.html
- Rakesh Jhunjhunwala, often referred to as the "Big Bull of Dalal Street," started his trading journey in the mid-1980s, investing in businesses such as Tata Tea, Tata Power, and Sesa Goa.
- Jhunjhunwala's investment strategy was a blend of value investing and identifying growth potential, as seen in his initial investment in Tata Tea and subsequent acquisition of Titan Company.
- In 2021, Jhunjhunwala ventured into the aviation sector by co-founding Akasa Air with an investment of $35 million, which quickly became the fastest-growing airline globally.
- Jhunjhunwala's firm, RARE Enterprises, held a diversified portfolio in sectors like consumer goods, financial services, healthcare, and infrastructure, with notable holdings including Star Health, CRISIL, Metro Brands, and Tata Motors.
- Jhunjhunwala's estate has been strategically divesting some positions, like Nazara Technologies, yielding significant returns such as a four-fold investment in the digital entertainment and gamification company.
