rakesh jhunjhunwala wallet and stock market profiteer – Rakesh Jhunjhunwala – the stock market magician!
One was Rakesh Jhunjhunwala. Today it seems a bit difficult to write and maybe even read, but now Jhunjhunwala will be remembered like this.
Only a week has passed since the Big Bull, Warren Buffett of India, and Rakesh Jhunjhunwala, the billionaire investor who drew millions to India’s stock market, left this world. Perhaps this is why the emphasis is on condolences to the bereaved family and tribute to the soul of the deceased. When recounting his memoirs, people talk about how Rakesh used to choose companies, how he used to make investment decisions, and how he had unwavering faith in India’s progress. There is also plenty of room for such memories in the journey from five thousand rupees in 1986 to forty five thousand crore rupees in 2022. When did he invest money in what business and how much is- he become? There are so many companies and so many stories that it becomes a long story. Listeners are happy to calculate, or regret that I wish we had known at the time!
At first glance, you can tell that the wealth, fame and respect that Rakesh Jhunjhunwala has earned in just sixty-two years of life is accessible to few. Life doesn’t have to be long, it has to be big, they can also accept it as a living example. But I think it’s very difficult right now to make a real assessment of Rakesh Jhunjhunwala. Over time, their true value will be understood. Maybe after twenty, fifty or a hundred years people would understand what it meant to be Rakesh Jhunjhunwala. For himself, also for the stock market, and also for the hundreds of thousands of people who saw a ray of hope in Rakesh.
It is not that Rakesh Jhunjhunwala laid the foundations of the stock market in India. It’s not that he was the first to recognize the power of the market. So what made Rakesh special?
There were two great industrialists who estimated the power of the Indian stock market and showed it to the world. First the Tatas who launched the Tata Iron and Steel Company ie TISCO on the stock market in 1907. This company is now called Tata Steel. And the second founder of Reliance, Dhiraj Lal Hirachand Ambani ie Dhirubhai.
Tata and Dhirubhai both trusted the Indian stock market in their time and after that they made so much profit to the investors through the work of their companies that people started trusting not only them but also the stock market .
RM Lala, the authoritative biographer of the Tata family, refers to the time when the steel mill was planned and the site was decided according to Jamsetji’s dreams. – “Tata had conquered the desert, now the victory was over the world of capital. It was initially suggested that, given the scale of the project, capital should be brought in from the London money market. In 1907, the London market also went through a bad patch. And the London capitalists wanted their control in addition to investing capital.
Some of the faint of heart thought that India would not be able to raise so much capital. Tata decided to enter the Indian stock market on its own. A prospectus has been issued for shares worth Rs 2.32 crore through ordinary shares of Rs 1.5 crore, preferred shares of Rs 75 lakh and deferred shares of Rs 7 lakh. From morning until late at night, people surrounded Tata’s office in Bombay. In three weeks, eight thousand people had invested. For this first big venture of India, her hidden wealth was out.
Tata’s stake in this company was around twenty five lakh rupees or 11 percent. Today, that amount of two and a half crores seems modest. But it should not be forgotten that the company raised with this amount was India’s largest private company until Reliance rose to number one just a few years ago.
The speed has steadily increased, but the process continues in the next generation as well.
Many companies are notorious for raising funds on the stock market and then earning huge amounts of money for their investors. But there are very few such qualified people in this market who read the picture of the company’s future at the right time and earn a lot by investing money in it.
Each time such a magician appears, thousands of people follow him. To ask for a tip is to know such a stock that can open the lock of their luck.
Harshad Mehta was one such magician in his time. The butt on which he rested his hand ran towards the sky. His story was the same. Started with a small sum in the 1980s and in 1992, that is to say in thirty years, he built a portfolio of more than three thousand five hundred rupees. But for this he also took advantage of loopholes in the law and then resorted to forgery. But when the game of Harshad opened, all the magic was broken and not only Harshad’s wealth was destroyed, but the Sensex also suffered a severe setback and thousands of people got their hands burned in the market and left as if afraid to drink burnt milk. .
However, after that there were many changes in the rules and regulations. The rules have been tightened and the process of buying and selling shares has been simplified and transparent. However, it took a long time to regain the trust of the people. And in the meantime, Rakesh Jhunjhunwala has gained a different stature.
However, Rakesh Jhunjhunwala is known for his long exposure, research and endurance. But he had the same heart in trading and when needed, he did not hesitate to invest money in the market by taking loans, that is, even on margin. If time is short and the desire to increase income is high, you have to take risks.
But like the world’s most famous investor, Warren Buffett, Rakesh Jhunjhunwala also thought it would be difficult if the benefits of progress did not reach all sections of society. He himself had kept about twenty-five percent of his fortune in the name of social work. But more than that, Rakesh believed that if the whole country moved forward, only everyone’s life would be better. The formula of distributing existing resources by blocking the way to progress cannot last long. He had great confidence in the Indian economy and India’s growth prospects. That’s why he was constantly saying that India is in a long-term bull run, i.e. it has to be fast in the long run. Rakesh took a lot of market risk and he himself had to pay the price for the risk he took in his life.
But there is no doubt that Rakesh Jhunjhunwala had become the brand ambassador of stock market, wealth creation or Samriddhi in India and the time to come will highlight his role even more deeply.