Rakesh Jhunjhunwala: The Journey from Zero Capital to Stock Market Dominance

Rakesh Jhunjhunwala, a prominent Indian stock market investor also known as the ldquo;Warren Buffett of Indiardquo; or ldquo;Big Bull,rdquo; was born on July 5, 1960, in Mumbai to a Marwadi family. His father, Radheshyamji Jhunjhunwala, was an Income Tax Officer, and his mother, Urmila Jhunjhunwala, was a housewife. He has two siblings as well. Despite his family's insistence on him completing his studies and securing a degree, Rakesh's early interest in the stock market led to a challenge he decided to overcome.

An Early Curiosity and Passion for the Stock Market

Rakesh Jhunjhunwala was always fascinated by the stock market, listening to his father's discussions with friends about it. His first encounter with the stock market was initially not successful due to his father's refusal of direct support. This initial challenge, however, did not deter him from pursuing his interest.

Enter the Stock Market

In 1985, when the Bombay Stock Exchange Index stood at 150, Rakesh Jhunjhunwala decided to take the plunge. Using his entire savings of Rs 5,000, he entered the stock market. This marked the beginning of his journey and laid the foundation for his future success.

Borrowing Capital and Early Success

Deprived of direct financial support from his father, Rakesh borrowed the required capital from his brother's clients, promising them a higher rate of return on their investment. This act of taking a financial risk to pursue his passion highlighted his determination to succeed.

The First Big Profit in 1986

One of his earliest and significant successes came in 1986 when the first big profit amounted to Rs 5 lakh. This happened when he acquired 5,000 shares of Tata Tea at Rs 43 each. In just three months, the shares rose to Rs 143, effectively making his investment more than triple. This early success demonstrated his astute market acumen and laid the groundwork for his future endeavors in the stock market.

Investing in Sesa Goa

From 1986 to 1989, Rakesh Jhunjhunwala made substantial profits, totaling around Rs 20-25 million, which he then invested in Sesa Goa, an iron mining company. The stock price of Sesa Goa shot up from Rs 28 to Rs 65. This investment further cemented his reputation as a seasoned investor in the stock market.

King of the Bull Market

Earning the title of the ldquo;King of the Bull Market,rdquo; Rakesh Jhunjhunwala's early success continued. His ability to make informed and profitable investment decisions earned him recognition and respect in the Indian financial community. This period in his career marked the beginning of his dominance in the stock market.

To learn more about how Rakesh Jhunjhunwala's journey started and evolved, continue reading.