"When there is doom and gloom, don't forget there is darkness before the dawn" - Rakesh Jhunjhunwala
Ace equity investor and billionaire Rakesh Jhunjhunwala passed away on August 14 at the age of 62. The self-made investor will always be remembered for his exceptional stock market skills and wisdom which he imparted to investors.
He was amongst the most influential voices in the Indian market and inspired many retail investors to start investing in stock markets. He was always positive on Indian markets in the long term.
Portfolio
"Stock markets are always right. Never time the market. The only rule I have is there are no rules."
Often called the Warren Buffett of India, Jhunjhunwala had an estimated net worth of around $5.8 billion or around ₹46,000 crore. A qualified Chartered Accountant, he invests in both his own name and his wife's, Rekha Jhunjhunwala. He also invests via his asset management firm RARE Enterprises.
His investments are closely tracked by the media and he generally tends to favor stocks in the finance, tech, retail and pharma sectors. He currently holds 32 stocks as per the June quarter shareholding data.
Jhunjhunwala had recently backed Akasa Air, a new budget airline in India, which began operations earlier in August. Other than that, he along with his wife was also one of the largest investors of Titan, making up more than a third of their portfolio. He holds over 5 percent in the Tata Group firm worth ₹11,190 crore.
His second highest investment, in terms of value is in Star Health and Allied Insurance, where he and his wife together hold a 17.49 percent stake in the company worth ₹7,075 crore.
His other top holding where he holds a stake worth over ₹1,000 crore include Metro Brands, where he holds a 14.4 percent stake worth ₹3,354 crore, Tata Motors, where he holds a 1.1 percent stake worth ₹1,744 crore, and Crisil, where he holds 5.5 percent stake worth ₹1,306 crore.
Meanwhile, he also holds over 10 percent stake in Aptech (23.4 percent worth ₹212.7 crore) and NCC (12.6 percent stake worth ₹510.7 crore).
About Jhunjhunwala
Born on July 5, 1960, Rakesh Jhunjhunwala was an Indian billionaire business magnate, stock trader, and investor. He began investing in 1985 with a capital of ₹5,000, with his first major profit in 1986. At the time of his death, he had an estimated net worth of $5.8 billion, making him the 438th richest person in the world.
Jhunjhunwala studied and trained to be a chartered accountant and his father worked as a Commissioner of Income Tax.
According to Wikipedia, Jhunjhunwala's first big profit came in the form of ₹5 lakh (from an investment of ₹5,000) in 1986. Between 1986 and 1989, he earned almost ₹20–25 lakh profit and by 2022, his investment had grown to ₹11,000 crores.
Besides being an active investor Jhunjhunwala was also the chairman of Aptech Limited and Hungama Digital Media Entertainment and sat on the board of directors of Prime Focus, Geojit Financial Services, Bilcare, Praj Industries, Nagarjuna Construction Company, and Viceroy Hotels, among others.
Unlike names like Harshad Mehta and Ketan Parekh, whose rise in fortunes in post-liberalised India was tainted with scam links, the newest 'Big Bull' in the more-regulated market had lesser baggage on this front.
Reactions
Expressing condolences to Jhunjhunwala's family and friends, Prime Minister Modi described him as indomitable. “Full of life, witty and insightful, he leaves behind an indelible contribution to the financial world. He was also very passionate about India’s progress. His passing away is saddening,” he said in a tweet.
B Gopkumar - MD & CEO, Axis Securities condoled the loss of the investor saying, "Mr. Jhunjhunwala will be missed for the sheer energy he bought to the TV studios. His strong belief in India's growth story and his bullishness on Indian markets is a tale of legend. He proved to each and everyone that if one stays invested in quality companies for long then wealth generation is almost assured. May his soul rest in peace."
Sushant Bhansali, CEO of Ambit Asset Management said, "The roaring titan of long-term investing in India is no more. Shocking news to everyone in the financial world. He was probably the biggest believer in the India story and put not only his words but his entire wealth behind this story and got rewarded for it. A man of passion, simplicity and high conviction he inspired millions of people to believe and invest in equity participation with Indian corporates. A true legend we all will miss. Be it investor calls, conferences, business TV channels, his roaring presence will be truly missed."
The investor will be missed by all his peers and investors alike. It will be very difficult for anyone to replace the 'big bull'. But his advice and words of wisdom are there to always help and guide investors.
As he would say, "Always go against the tide. Buy when others are selling and sell when others are buying."