So in this blog, we will understand Rakesh Jhunjhunwala ji, how he started from the base level, and became a billionaire. Today he has a net worth of more than 22,000 crores. Now it seems very easy to say 22,000 crores, but when it comes to reaching that level, no one knows about it on the road. But today, you will get inspiration and direction that you, too, start from zero. How to reach such a big level?
Because if there are some examples in front of us, then a road map becomes clear that how the other person has achieved in his life and if we also follow his footsteps, then it does not mean that every person will reach22,000 crores, but he will rise much above his level. And we will know about Rakesh Jhunjhunwalaji’s portfolio, where he has made investments. I will also tell you about the biggest and most important deals about him. So the beginning of Rakesh Jhunjhunwala ji was very humble.
He was born on 5th July 1960 in the Marwari family. His father was an income tax officer. I have always told you that a child learns much from his parents. What he is talking about, what conversation he is having with his colleagues, everything is going on, everything is going in the conscious mind. So when Rakesh Jhunjhunwala was 14 years old, he heard his father talking a lot about the share market. See, at that time, any child starts to get some wisdom. He starts understanding things.
So the income tax department is already visible on the share market. You guys already know about it. So he must be talking in his house. So Rakesh Jhunjhunwala ji asked his father, I want to know about the share market. I want to learn. So his father told him that there was no YouTube or Google at that time. So he said that there is a newspaper in your house every day. There must be an economic time in your house. So if you read that newspaper yourself, his father said, you will find out about many companies. So Rakesh Jhunjhunwala started reading the newspaper. Where was his focus? On the share market.
So what is going on in the share market? What is not going on? He started studying companies, and in the middle, he felt that I had learned a lot. I start investing. I start earning money. He told his father, but every time his father refused. He said no, there is not the right time. You go and invest in the share market. Start earning money. Now focus on your studies. In India, our parents also say that don’t talk about money now. First, focus on your studies. So see, Rakesh Jhunjhunwala is also Indian. His father was also Indian. So his father is very similar. So his father said, finish your studies first.
Now Rakesh Jhunjhunwala completed his graduation first. After that, he became a chartered accountant and CA. By the age of 25, he had completed his professional education. When he became a chartered accountant, his father asked, ” Do you want to enter the share market? You can start, but I will not give you much money. I will not give you a lot of money.
So, Rakesh Jhunjhunwala, you can read it everywhere on the internet, that he had taken a step in the share market with only 5000. Well, I think it is good to inspire, but more investment must have been made. Okay, 5000 can be the first investment, but later more investment must have been made because when he took a step, that year was 1985 and the start of his life; you can say that it was a kick start profit. He got it in 1986. How did he get it? I will tell you.
See what he did here; he analysed the company for a long time. Talked to 14 years of age, and we talked about when he entered the share market; he was 25. So he studied the share market for 11 years. I have a question for you. We all want to earn money; we want to earn a lot of money. I told you here that he entered at the age of 25 and started learning at the age of 25. He studied the share market for 11 years. How much time did you spend?
If you want to earn a lot of money, how much time are you taking? Because here you get to know new things every day. You learn every day, and the day you stop learning, you stop earning. So here he spent 11 years, so you should take the first inspiration from here that you also have to take time. After spending time, he understood value investing and bought shares of Tata Tea.
How many did he buy? I will tell you. Tata Tea at that time when he studied, he saw that the share price of Tata Tea was 43, and he felt that this price was less than the intrinsic value. This is called value investing in short. When you invest in any company, if the value is more than that and the price is running low, then invest at that time. He saw that its price could increase quickly, so he bought 5000 shares. Why was I telling you that there would have been no investment from 5000 because there was an investment of more than 2 lakhs here? So here, if you see 43 into 5000, he invested and within 3 months, because his analysis was very accurate at that time, the price of Tata Tawas 143 in just 3 months and how much money he earned in 3 months, you can see for yourself. A profit of 5 lakhs was made.
So the profit of 5 lakhs, which he got in the beginning, we still consider 5 lakhs to be a very good amount. The amount of 5 lakhs is good, so if someone had made a profit of 5 lakhs, how much motivation would he have? So he did not stop at the profit of 5 lakhs. It was 5 to 10, 10 to 15, the profit of lakhs came to crores at some time. Everyone discussed a big deal of his life when he bought shares of Titan Company from 2002 to 2003.Do you know how many shares he bought from Titan Company? He bought 6 crore shares. Now you will say 6 crore shares. Sir, what was the share of? Approximately the average value was 3. So you will say that there is an investment of 18 crores.
This is a very big investment. It is definitely a big investment, but now, Google, what is Titan’s share price at today’s date? You will see that the price is around 2300. Okay, 3 to 2300 crores. If you want to find the value of 6 crore shares, it becomes 13,800 crores. 18 crores have not been completed for 20 years. You can see it became 13,800 crores. Now what is this? This is value investing. At today’s rate, many people in India will have 18 crores, but very few people will have 13,800 crores. Today, if you talk about the ranking of Rakesh Jhunjhunwala in India, he comes in the 48th number in the richest person.
So in India, Rakesh Jhunjhunwala comes in the top 50. Now why did this happen in front of you? This is how you become a real billionaire. Where can you reach by investing? This is a very good example. Now Warren Buffet is called India. When we talk about Warren Buffet, I will tell you about the portfolio of Rakesh Jhunjhunwala and his investment. You all want to know, but when we are talking about Warren Buffet, why is Warren Buffet called? Warren Buffet is said because if we talk about living people, then in this whole world, Warren Buffet has been the most successful investor.
He comes to the list of the richest people in the world. Rakesh Jhunjhunwala comes in the list of the richest people in India. Warren Buffet comes in the list of the richest people in the world. Why is this? Again, the answer is value investing. Buy the shares when it is getting at a price less than their value, and if you understand value investing and learn, you will not be able to find many shares. Warren Buffet says that if I am in the whole year, if Warren Buffet and his business partner Charlie Monger if you have heard about them, then they say that if we find 2 to 3 companies in a year, in which we have to invest according to our analysis, according to value investing, then we feel that we have done a lot of work.
We have made a very good decision here that we have identified 2 to 3 companies. So they do not go after 50 companies. Warren Buffet’s approach is a little different. So you already know that Warren Buffet, like here you took the example of Titan, Warren Buffet started investing in Apple. Before this, he did not invest in many technology-driven companies, but after his analysis, when he saw that the price of Apple could go up very quickly, he made his major investment in Apple.
Now you will talk about Apple; you will think, how can we buy Apple? See, we use Apple phones. US companies surround us. There are many US companies around us. because there are many people in India, Tesla is coming now. People think that Tesla will grow a lot. We order from Amazon, drink Starbucks coffee, and search for everything on Google. So there are multiple American companies around us, and if you believe in their growth story, then you should invest a little bit of yours. You can allocate your money there. Now we were finally talking that Warren Buffett is a very successful investor
If Rakesh Jhunjhunwala is such a successful investor, what is his portfolio? How does it look? I will just tell you his portfolio now. So here you can see more than 22,000 crores, almost 22,500 crores are his net worth, and this is his net worth. Rakesh Jhunjhunwala invests in his name, his wife, Rekhta Jhunjhunwala Ji, so he invests in his name and has created an enterprise. Taking two letters in front of his name and two letters in front of his wife, Rakesh’s Ran Rekhta’s RE becomes rare.
Rakesh Jhunjhunwala invests in the name of Rare Enterprises. So here I would like to show you which sectors his investment is. So now I will show you, you see here, so here you can see that construction and contracting in real-estate is 10%, 8% in pharmaceuticals, now I will tell you the names of the companies,5% in finance, 5% in construction and contracting civil, 5% in private sector banks and 3% in public-sector banks, 3% in hotels, 3% in software, so in this way, you can see his whole portfolio, which is completely diversified.
Here he has invested in almost every leading sector, whether steel or auto tractors, so you can see investment in retail investment in cement, but the maximum investment is in real estate. So here I will show you the names of the companies, so let me just show you the name of the companies also, so here we come to the holdings, so you will see the names of the companies exactly,
so here we can see the names of the companies, so here you can see, in Pate Limited, their holding is 23.72%, in NCC Limited, 2.84%, in Nazaro Technologies, 10.82%, in the same way, in Rally India Limited, 9.81%, in Bill care Limited, 8.48%, so you may not have heard about many companies, but see how is the investment happening, search the companies, see at what time they should be invested, at this time, their price is more and their value is less,
so when you feel that the prices too high, then you are late, when the price is very low and then you invest, that is value investing, so there are many companies among them, which you will think that maybe we should have invested in it, but as I gave you the example of Titan, in Titan Company Limited, so they have a stake of 4.87%, here you can see the quantity, that the quantity they have is 4,33,000,000 shares, at today’s rate of Titan Company,
so all the investors, they increase and decrease their shares at some time, how will you know that, you can see everything, at today’s rate, you have all the data available on the internet, so if you go to the overview, then you will find their fresh entries in the portfolio and exits, like in Canara Bank, their holding is 1.6% and here they have increased the quantity,
so here you can see the shares, they have 2,90,000,000 shares at today’s rate, similarly, they have increased their investment in India Bulls Real Estate, so here they have 50,00,000shares and here they have decreased, like they have decreased the shares of MCX, so here their holding is less than 1%,
here I will show you a little about the bulk deals, here you will know about the bulk deals, now you can see Zee Entertainment, just give me a while, I have to put it down, so as I told you that the holder name is rare, so they invest in the name of Rare Enterprises, here you can see the investment is in the name of Rakesh Jhunjhunwala, similarly, the investment is in the name of Rekhta Rakesh Jhunjhunwala wife,
you will know about different companies, so see Zee Entertainment, in the enterprise limited, the Rare Enterprise holder, they have done a bulk deal, here 50,00,000 quantity has been purchased at the price of 220, so this is an investment of 110 crores, similarly, the price selling is going on today, see here, when the price of Tata Motors started increasing, you will see that in May 2021, Rare Enterprises sold 25,00,000shares of Tata Motors and then they bought it in the name of their wife, so here you are seeing that they sold 25,00,000shares and bought 1 crore at almost the same price value,
so these are the kind of bulk deals that are going on, about which you will know on the net, in fact, some people will say that we have not seen the holdings properly, so I will show you the holdings, so there are so many companies, so starting from Partech, I am showing you majorly here, because the percentage of the holding is important, 23% in Partech, 12% inch limited, 10% in Nazara Technologies, 9.81% in Rally India Limited, 8.48% in Billkale Limited, similarly, you can see a lot of names are here.
So that get to know the name of all the shares in which there is an investment, I will put it down a little, like here in Delta Corporation Limited, their holding is 7.50%,till Fortis, if you see here, Fortis Healthcare Limited has 4.23%, you can see the number of shares here and youkan see everything, in Indian hotels, as I said, there is an investment in hotels, youkan see a lot of shares are here and from Fortis to Tata,
so the major thing that you need to know, I have shown you here, from Canberra Bank to Multi Commodity Exchange of India, their investments, all the percentages are here in front of you, now seeing all this, what will you get, if you see their portfolio, then you can start investing in these companies, one thing is important, when they have invested in those companies, then the share price would have been much less than today and it would have increased today,
so if you are thinking that I will copy their portfolio exactly, then you can make a mistake, don’t make this mistake, what I suggest, what you should do, make your analysis better, you also learn fundamental analysis, how we buy a company at a lower value than its intrinsic value, for that you have to understand the PE ratio, you have to understand the PB ratio, there are many ratios and fundamental analysis is not that difficult, for that I have made whole list of blogs.