When you hear about the success stories about the stock market in India, one name that first comes to everyone’s mind is Rakesh Jhunjhunwala. What makes the story of Rakesh Jhunjhunwala fascinating is the fact that he was a regular guy from Mumbai and went on to become the most successful investor in the history of India. He is not only a billionaire but an inspiration to every investor in the Indian stock market. He is often called the Warren Buffet or King of Dalal Street. In this article, you will go through the story of Mr. Jhunjhunwala from rags to riches with just Rs. 5,000 as capital.
About Stock Market King Rakesh Jhunjhunwala
Rakesh Jhunjhunwala was born on 5th July 1960 in Mumbai. His father was an income tax officer. Rakesh Jhunjhunwala would often hear his father talking about the stock market with his friends. From there on his curiosity about the stock market rose. So once he asked his father about the stock market and why the prices of stocks on the stock market fluctuate. His father told him to read news about the company’s newspapers to understand the reason behind it. This was the first lesson that Jhunjhunwala learned about the stock market from his father.
Later, Rakesh Jhunjhunwala graduated from Sydenham College in 1985 and became a qualified Chartered Accountant. After completing education, he discussed with his father about picking the stock market as his career goal and his father agreed with some conditions. The condition was that he would not support RJ financially and he should not ask his friends or family members for any monetary help. He should learn to earn and invest his own money in the stock market.
Entering Into The World Of Stock Market
Mr. Jhunjhunwala started his stock market journey with a capital of just Rs. 5,000 in 1985. During that time, Sensex was trading at just 150 points. Soon Rakesh Jhunjhunwala borrowed an amount of Rs. 2.5 lakhs from one of his client’s brother by promising him to give higher returns in comparison to fixed deposits. By this time he had realized that trading is the only option through which he can make big money in the market.
His first success in the stock market came when he made a profit of Rs. 0.5 million in 1986. He made this profit by purchasing 5,000 shares of Tata Tea at Rs. 43 and booking profit at Rs. 143 within 3 months of the purchase. In simple words, he made a profit of over 3 times within 3 months of purchasing the stock of Tata Tea.
The same trend of making high profits continued in the years to come. In the years 1986-89, he made a profit of Rs. 20-25 lakhs. The next investment that gave him big profits was the purchase of stocks of Sesa Goa. He bought the stock at Rs. 28 and later increase his stake in the company at the price of Rs. 35. Very soon the price of stock touched Rs. 65.
This was just the beginning of the king of Dalal Street. His journey from a humble middle-class household to rise to the billionaire’s list of Forbes is an inspiration. His investments have seen a lot of stocks turning into mutlibaggar. He had seen his share of failures too in the stock market. But every time he bounced back and recovered all the losses.
If you also dream big in the stock market and want to become successful, you must have sufficient knowledge about it. You can get all the stock market knowledge and the latest information through blogs and articles on Nifty Trading Academy. We are the leader in providing stock market education and help you in learning all the details of the market.