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In the year 2002, on a busy afternoon in Mumbai, there was silence on Dalal Street but the ringing of the phone in Rakesh ji's office broke that silence. On the other side was a broker whose voice clearly spoke of nervousness . Rakesh Bhai Morgan Stanley is in panic. He is about to sell a block of โน90 lakh shares of Titan .
If you just pick up 5 lakh shares, I will get them for you at just โน32, below the market rate. At that time the entire market was running away from Titan. The company was in loss, there were questions on the management. But Rakesh Jhunjhunwala ji took a long drag of his cigar and without blinking said, finalize the deal and take the entire stock.
This wasn't just a trading call. This was the foundation of the empire that today we call a โน45,000 crore portfolio. Harshad Mehta, who touched the crown of Big Bull in 1992, was the only person to hold it in his grasp for the next 30 years. A man who bet on India when the world thought India was poor.
Today we will understand the essence of the journey from โน5000 to โน45,000 crore which made Rakesh Jhunjhunwala ji the Warren Buffett of India. Let's start this untold story of The Big Bull Rakesh Jhunjhunuwala. Rakesh ji was born on 5 July 1960 in Hyderabad. His family was from Jhunjhunu, Rajasthan and because of this connection, Jhunjhunwala was added to his name.
His father Radheshyam Jhunjhunwala ji was an Income Tax Officer. Often his friends would come home in the evening and they would discuss the stock market. 15 year old Rakesh ji used to listen to all these things secretly every day. One day he asked his father, Papa, why do the share prices fluctuate every day ?
The father replied, son, read the newspaper. Understand the relationship between news and share price. You will understand everything gradually. This was the moment when the seed of stock market was sown in Rakesh ji's mind for the first time. But father put a condition, complete your studies first.
Rakesh ji did B.Com from Sydenham College and became a Chartered Accountant in 1985. The father wanted his son to have a stable job. But Rakesh ji's heart beat in Dalal Street. When he expressed his desire to enter the market to his father and asked for some money, his father flatly refused. Do n't ask me for money and don't borrow it from any friend either.
When Rakesh ji checked his pocket, he had only โน5,000 of his savings. But he had a great passion to enter the market. In the year 1985, he entered the stock market with just โน5,000. At that time the Sensex was only around 150. He initially took some small trades so that he could understand the market movements.
Meanwhile, his elder brother, who was himself a CA, brought a rich woman to Rakesh ji. That woman wanted to invest her money in the right place. In those days, banks used to give 12 to 13% interest on FD. But Rakesh ji promised to give 18% interest to that woman and took an investment of โน5 lakh from her.
After this, through some more clients, he collected a total fund of โน1 lakh and then came the year 1986. Rakesh ji placed his first big bet on Tata T shares. He bought 5000 shares at โน43. Within just 3 months, the price of Tata T reached โน143. Profit straight โน5 lakh. This was his first big victory, but the real picture was yet to come.
In 1989, India's mining company Sesa Goa, now known as Vedta, was suffering huge losses due to the global crisis . The share price had fallen to just โน28. Rakesh collected a total of โน1 crore by using all his savings and some borrowed money and invested the entire amount in Sesa Goa shares. Just imagine how big a sum โน1 crore was for a middle class boy in those days.
But Rakesh ji had full confidence in his research. This was the biggest and most dangerous risk of his life. But luck favoured him. Within a few years, this stock rocketed and reached the level of โน2200. Sesa Goa shares made Rakesh ji a millionaire. The boy who once had only โน5000 in his pocket, paid income tax of โน20 lakh for the first time that year.
During this period, a very emotional and famous incident is related to Rakesh ji's life. He married Rekha ji in the year 1987. Rekha ji belonged to a rich family. Where all the comforts like AC and car were available. But after marriage, there was no AC in Rakesh ji's house at that time. Rekha ji often demanded AC.
But at that time Rakesh ji was investing money in the market and increasing his capital. Then came the year 1990, when VP Singh [Sangit] ji was the Chief Minister. There was a buzz in the corridors of Delhi as Finance Minister Madhu Dandavate was about to present the budget. The market was scared. Everyone thought the budget would be anti-business.
But Rakesh ji believed that VP Singh's government would not do this. Rakesh ji put in all his efforts and traded that day and a miracle happened. His net worth increased from โน3 crore to โน20 crore in that one night. The next morning he gifted a wonderful AC to Rekha ji and said something big. Hobbies should always be fulfilled from investment profits and not from your original capital.
Now the question arises that where did Rakesh ji get the courage to play such a big bet? Actually, he met two such great people in Dalal Street who changed his thinking. Earlier there was Radhakishan Damani ji who is the owner of DMart today. Rakesh ji considered him his guru and elder brother and the other was Manu Manek who was called Black Cobra in the market.
Manu Manek was a famous bear, or short seller, who made money when the market fell. Rakesh ji also joined Manu Manek's group for some time. But in 1991, when Harshad Mehta started his bull run, he took the market to such a height that the bear cartel suffered huge losses. Rakesh ji and Damani ji also had to suffer huge losses at that time.
But as soon as Harshad Mehta's scam came to light in 1992, the entire market collapsed like a house of cards. While the world was crying, Rakesh ji took advantage of this fall and did a lot of short selling. At that time he earned around Rs 30 to 35 crores but from here his thinking changed. They understood that short selling was a short- term game.
The real future of India lies in long term investing . After the turmoil of the 1992 Harshad Mehta scam and Manu Manek's separation from Beer Cartel, Rakesh ji decided to create a new identity for himself . He founded his own asset management company called Rare Enterprises. There was a very sweet and personal secret hidden behind this name.
The word Rare was actually named after the names of Rakesh ji and his wife Rekha ji. R meant Rekha and RA meant Rakesh. This company was not just a paper firm but it was the nerve centre of Rakesh ji's empire . From where he decided the fate of Indian companies and his own fate. This was the period where Rakesh ji left behind the image of a short term trader and moved towards becoming a mature long term investor.
In 1994, American giant Morgan Stanley launched India's first foreign mutual fund. People felt that now only foreign companies would run our market. But then the recession hit and Morgan Stanley started pulling its money out of India . This was the moment when Rakesh ji made the world acknowledge his talent.
He proudly said that what do foreigners know, India is a sleeping lion which has now awakened. When everyone was selling out of fear, Rakesh ji bought heavily and proved that an Indian investor has the most trust in his country. Now let's talk about that phone call deal we mentioned at the beginning.
That โน32 deal of Titan in the year 2002 at that time it seemed like a suicide mission because Titan company was running in losses at that time . In fact, a big investor like Morgan Stanley wanted to get rid of Titan . He felt that the company's jewellery business i.e. Tanishq would never be able to make profits.
The watch business had also slowed down and Morgan Stanley was afraid that all his money might be lost. That is why they wanted to sell their entire holding and run away from the market. But Rakesh ji did not just look at the charts. He met Titan MD Bhaskar Bhatt ji and understood the real strength of the company.
He recognised the trust value of the Tata brand and the growing interest of India's middle class. He was absolutely confident that Tanishq, which is in loss today, will become India's biggest jewellery chain tomorrow . Rakesh ji bought 5 lakh shares of Titan and did not stop even after that. He kept buying and at one point he owned 60 million shares of Titan.
Now here we solve the puzzle which confuses many people. People say they bought Titan for โน3 when in reality they bought it for โน32 to โน35. In fact, when the stock split happened in 2011, his one share was divided into 10 parts , due to which his purchase of โน30 became just โน3 on paper. This is the real magic of compounding.
He kept those shares hidden in his safe for 20 years. Today his family owns more than 5% shares of Titan. Whose value is in thousands of crores. Rakesh ji often used to say that money in the market is made not with the mind but with the heart and liver. The real player in the market is the one who sticks to his research even in the biggest storm .
But friends, as it is said, every coin has two sides. Rakesh ji was not some god that everything he touched would turn into gold. He too has suffered great losses in life. In the year 2019, he suffered huge losses ranging from โน178 crore to โน221 crore in DHFL . When that company got caught in scam and debt crisis.
Not only this, Bollywood Dabangg Salman Khan's company Mandana Retail, which we know today as Being Human. Even in that, Rakesh ji had to suffer huge losses. Some of his other investments like DB Realty and several smaller companies also disappointed him. But his speciality was that he would immediately admit his mistakes [in music] and learn from them and move ahead.
Despite these losses, Rakesh ji's portfolio was always in the news. They were n't relying solely on the Titan. He had seen his park in every sector of the market. He had made large investments in dozens of strong companies like CRISIL, Lupen, Pharma, Paz Industries and Volts. His strategy was very clear.
To find such companies whose value may be low in the eyes of the market today, but whose future is directly linked to the progress of India. For example, he invested in Lupen at a time when India's pharma sector was making its mark globally. Rakesh ji often used to give an example in his outspoken language that if a girl is beautiful then people seeking marriage proposal will automatically come.
That means if the company's business and management are strong then if not today then tomorrow the market will recognize its true value. They didn't just buy shares. They used to buy a part of India's growth story. The problems were not limited to the ghats only. In the year 2021, Rakesh ji's spotless career was also overshadowed by a controversial allegation.
He was accused of insider trading in the case of Aptech shares. SEBI alleged that Rakesh ji and his close associates traded on the basis of information that was not available to the general public. But instead of fighting a long legal battle, Rakesh ji settled with SEBI for around โน37 crores. He paid this amount to end the legal process without admitting his crime.
At that time this was a topic of discussion in the entire market. But despite this, he always stayed away from big scams and maintained his identity as a long term investor. Despite his deteriorating health and being on dialysis in his last days, Rakesh ji's courage did not diminish. In 2021, he took the last and most emotional risk of his life by starting Akasa Air.
Some people laughed, some joked that even big people lose their money in airlines. But Rakesh ji fearlessly said, "I want the common man of India to be able to fulfill his dream of cheap air travel. " Look at the luck. On August 7, 2022, just a week before his death, the first flight of Akasa Air took to the skies.
And on August 14, 2022 the Lion of Dalal Street fell silent forever. Kidney disease took away India's biggest bull from us. He taught us to buy right seat tight. He proved that if you have faith in yourself and your country, even โน5,000 can become โน45,000 crore. Rakesh Jhunjhunwala ji is gone. But in every falling market, when someone loses courage, their voice echoes.
The market is supreme. The market is at its peak. If you liked this inspiring journey of The Big Bull then do give this video a like. Don't forget to subscribe to our channel so that such unheard and true stories related to finance and stock market keep reaching you. Be sure to turn on the notification bell so you don't miss the next story.
Till then take care of your investments and your money. See you in the next video. Jai Hind.
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