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Friends, in today's Deep Drive, we are going to decode the journey of a legendary investor who travelled from middle class beginnings to the top of the stock market. Yes, we are talking about The Big Bull Rakesh Jhunjhunwala. Without further ado, let's jump straight into the story and see how it all began.
Now see how fun and typical the beginning was. When Rakesh ji told at home for the first time that he wanted to go into the stock market. So imagine what his mother's first reaction was? His simple question was, if you go into the stock market, who will marry you? Meaning a very typical middle class fear.
In those days, no one considered stock market a stable career. It was just considered gambling. This small incident gives a very human touch to the entire story. And this is where the stark contrast in parental perspectives comes into play. On one side was his mother who was worried about the traditional issues of marriage and settlement and on the other side was his father.
His approach was completely different and quite democratic. He clearly said, look brother, do whatever you want but I will not give you money. This means that you have got complete freedom to choose your career but there is absolutely zero capital support. So how did this journey begin? Believe me, just from ₹5000.
Yes, you heard it absolutely right. The man who later built such a huge empire worth thousands of crores, had only ₹5,000 in his pocket at the beginning. Just by looking at this small number, one can understand how big and risky this leap of his was going to be. But this figure of 5000 was not going to last long.
This is the year 1985. Rakesh ji approached some of his brother's clients and promised them 18% fixed returns and what happened next was amazing. He converted that capital of ₹1 lakh into around ₹30 lakh in a very short time. This was the first biggest victory of his life. This proved that his understanding of the market was far ahead of the common people.
Let us now move ahead and see how this professional success was bringing results in his personal life. Let's talk about The Asian 200 million. So Rakesh ji got married to Rekha ji. Now the interesting thing was that Rekha ji came from a family where luxuries like cars and AC were available. Whereas even at that time, Rakesh ji used to face jostling in the bus and lived in a room without AC.
But then came an evening that turned everything upside down. At 6:00 pm, his net worth was around ₹3 crore and by 9:00 pm, due to the huge fluctuations in the market, it jumped directly to ₹20 crore. What he said to his wife after reaching home that night is very famous. Rekha, your AC has arrived. Just one evening in the stock market and the entire map of life changed.
Now let us come to a very crucial period, the era of Harshad Mehta and Rakesh ji's master class on short selling. Look at this slide carefully. While the entire country was going crazy over that bull run, something else was going on in the background. The price of State Bank of India had reached Rs 3000 in the unlisted market.
Whereas in the listed market the same price was only around Rs 160. This huge, or rather unbelievable, difference in valuation gave Rakesh ji the trigger to aggressively short the market. He could clearly see that this balloon was about to burst and his short selling strategy was simple and solid. Step One: Sell overvalued shares at high prices.
And step two, when the market crashes, cover your position by buying at the lowest price. When the entire country was investing in blind bullishness, he made his biggest profits by using this exact strategy in the falling market. It just wasn't good timing. This was the result of his amazing conviction.
A lot of money has been made, but now a very big and deep shift comes in this journey. Let's talk about the real purpose of wealth. When you have so much money, your perspective automatically starts changing. Rakesh ji also started thinking that what should actually be done with all this wealth? His idea that leaving ₹200 to ₹500 crores is enough to secure the future of children was very practical and profound.
But what about the remaining immense wealth that remains? There is no logic in just piling up money. This was the moment where the real meaning of life and society started being explored more than earning money. And this is where the most important part of his investment philosophy comes to the fore, which we can call India's diversity and growth.
He had unshakable faith in India's growth story and what was the basis of this faith? The real strength of this country is its 29 different languages, the unique and excellent food of each region and the deep tolerance within the society. He believed that this diversity and cultural flexibility is the biggest driver of India's long-term economic success.
Just imagine, in a country where such immense diversity coexists, there can be countless opportunities for growth and investment ? And now at the very end, this is a question that hits straight to the heart. Am I dying just to earn money? This is not a common question. This is the question asked by a legend who had literally achieved everything from the market and ultimately came to the conclusion that life is worth much more than a bank balance.
It is a matter for all of us to stop and think that what is our real motive behind earning wealth? Thank you so much for joining us on this Deep Drive today. Keep learning and do consider this last question.
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