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In the year 2002, there was silence on Dalal Street on a busy afternoon in Mumbai. But the phone ringing in Rakesh ji's office broke the silence. On the other side was a broker whose voice clearly showed nervousness. Rakesh Bhai Morgan Stanley is in panic. He is going to sell a block of ₹90 lakh shares of Titan.
If you just pick up 5 lakh shares, I will get them for you at just ₹32, 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. Brokerage houses were one by one writing sell advice in their reports. 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 45,000 crore portfolio. Harshad Mehta, who touched the crown of Big Bull in 1992, was the only person to keep that crown in his hands for the next 30 years. A person who bet on India when the world considered India poor.
When foreign investors used to ignore this country calling it a third world economy. Today we will understand the essence of the journey from ₹5,000 to ₹45,000 crore which made Rakesh Jhunjhunuwala ji the Warren Buffett of India. Let's begin this untold story of The Big Bull Rakesh Jhunjhunwala . Now let's go back a little.
Born in a middle class family, with roots in Jhunjhunu, Rajasthan and Hyderabad on July 5, 1960. Rakesh ji's story begins from here. Father Radheshyam ji was an officer in the Income Tax Department and often in the evenings, his friends would gather at home and discuss the stock market, the budget, and the profits and losses of companies.
A teenage boy sat quietly in the corner listening to everything. Despite not understanding, I tried to catch every word carefully. One day curiosity arose. Papa, why do these share prices fluctuate every day? The answer was simple and profound. Start reading the newspaper. You will understand the relationship between news and price yourself.
It was from here that a seed was sown which later became a whole forest. But there was only one condition, studies first. B.Com from Sydenham College. Then Chartered Accountant degree for Rs 10,985. The father hoped that his son would now get a safe job. Someone will join a big firm. But Rakesh ji's attention was somewhere else, towards Dalal Street where there was a chance to change his fortune every day.
When he talked about entering the market and asked for money, his father replied bluntly, not from me, not even by borrowing from anyone else. Whatever you have to do, do it on your own. There were only ₹5000 in the name of savings in the pocket. But the intention was much bigger than that. In the year 1985, the Sensex was hovering around ₹150.
If you compare it to today, this figure seems like a joke. Started with small trades, sometimes making profits, sometimes making small losses. But with every trade, I slowly started understanding the pulse of the market. Meanwhile, through my brother, I met a rich female investor who was looking for a safe and profitable place to invest her savings.
In that period, bank FDs used to give 12% return. Rakesh ji showed courage and took the amount of Rs 5 lakh by promising 18%. A big promise, a big trust. Some more people joined. In total, a small fund of Rs 1 lakh was created and this fund laid the foundation of the entire story. The first big gamble was made on Tata T shares in 10,986.
5000 shares were bought at ₹43 and within just 3 months the price reached ₹143. Straight profit of Rs 5 lakh, first big win. This one deal instilled a belief in Rakesh ji that with proper research and right timing, big money can be made in the market. But the story was still very long. Then came the ₹1,989 Sesa Goa.
The same company which we know today as Vedta. Due to the impact of global recession, the share had fallen to just ₹28. The company's mining business was sluggish worldwide. Here, Rakesh ji bet his entire savings and some borrowed money, totaling Rs 1 crore, on this one share. For a person from a middle class background, this amount was no less than a gamble.
The most dangerous decision of his career. Friends and relatives also advised me not to take such a big risk. But Rakesh ji had full confidence in his research and luck favoured him. The stock started skyrocketing. Gradually it reached ₹2200. Rakesh ji became a millionaire overnight and in the same year, for the first time, he paid income tax of ₹ lakh, which was a huge achievement in those times.
He got married in 1987 to Rekha ji, the daughter of a wealthy family who had been provided with facilities like AC car since childhood. But after marriage there was no AC in the house. Rekha ji kept saying this again and again but at that time all the money of Rakesh ji was invested in the market. In increasing capital, not in comforts.
Came to ₹1,990. The budget day of BP Singh's government was near. The entire market was scared that the policies of the new government would be anti-business. Everyone was ready to sell. Rakesh ji's confidence was different. He was confident that this would not happen and that the government would not harm the market.
There was a lot of trading that day. A big bet was placed and in that one night the net worth jumped from Rs 3 crore to Rs 20 crore. The next morning Rekha ji was gifted a shiny AC. Along with this, one lesson is that always fulfill your hobbies profitably. Never from the original capital. Where did this courage come from?
The answer to this is hidden in two names. First, Radhakishan Damani ji, today's DMart king, whom Rakesh ji respected like a guru. From whom he learned deep lessons of value investing. The second Manumanik market was known as Black Cobra. An expert short seller whose one move could shake the entire market.
Rakesh ji remained a part of this group for some time. Keep learning the intricacies of short selling. But when Harshad Mehta's bull run started in 1991, the market started going up wildly. The beer cartel suffered a major blow and Rakesh ji also had to suffer losses. Then came 10.92. Harshad Mehta scam broke out.
The entire market collapsed. Crores of investors' money was lost overnight. While the rest of the world was mourning, Rakesh ji turned that downfall into an opportunity. Earned Rs 3035 crore by doing heavy short selling. But here I also learnt a big lesson. Short selling is just short selling. The real race is for long term investing and India's future lies in it.
With this thought, a new company Rare Enterprises was formed. There is a personal story behind the name. The word Rare is actually a combination of the names of wife Rekha and Rakesh himself. This wasn't just any company. This was the heartbeat of the entire empire from where the fate of dozens of Indian companies was to be decided in future.
In 1994, Morgan Stanley launched the first foreign mutual fund in India. There was discussion everywhere that now only foreign money will give direction to the market. Indian investors will be left behind. But as soon as recession came, the same Morgan Stanley started running away from India. This was the moment when Rakesh ji said, what will foreigners understand?
India is a sleeping lion that has now woken up. When everyone else was selling and leaving. Rakesh ji was buying with both hands. With the same confidence that he had in India from the beginning. Now let's return to the same Titan deal with which this story began. That ₹32 bet of 2002 seemed like a suicidal decision to the whole world at that time.
The company was in loss. Morgan Stanley suspected that Tanishq would never become profitable. The watch business had also slowed down . Investors were withdrawing one by one. But Rakesh ji did not just read spreadsheets. He spoke directly to Titan MD Bhaskar Bhatt ji. After sitting for hours, I understood the company's strategy, understood the credibility of the Tata name and sensed the desires of India's growing middle class that the future would be of branded jewellery and watches.
He was sure that Tanishq is a burden today. Tomorrow it will become India's biggest jewellery identity. It started with 5 lakh shares. Then the purchases continued to increase. At one point the figure reached 6 crore shares. A common misconception is that Titan was bought for just ₹3. Whereas the actual purchase price was around ₹3235.
When the stock split happened in 2011, one share was divided into 10 pieces. This is the reason why that old purchase of ₹30 now appears as just ₹3 in the books. This is the real power of compounding. The shares were not sold for 20 years. Just hold on patiently. Despite all the ups and downs. Today the family owns more than 5% of Titan .
Price in thousands of crores. Rakesh ji always used to repeat one line. In the market, money is made not by the mind but by the heart and liver. But every story has its ups and downs. Rakesh ji was not a magician that every share he touched would turn into gold. In 2019, DHFL suffered a major setback of around Rs 178 to 221 crore.
When the company got trapped in scams and debt, the entire financial sector got affected by it. Salman Khan's Mandana Retail, now known as Being Human, also incurred losses . Some other companies like DB Realty also disappointed. But one habit has always been there: accept your mistake, learn from it and move on.
Never hid my mistake. The portfolio never rested solely on Titan. Dozens of companies like Chrysal, Lupon Pharma, Peace Industries, Volts etc. joined. He had an eye on every sector. The strategy was very clear. Seems cheap today. But choosing companies that will take off with India's growth tomorrow , recognizing their true value, which the market is not seeing right now.
A famous example was often given. If the girl is beautiful then relationships come automatically. The meaning was clear. If the business and management are strong, the market recognizes the value sooner or later. Just have to wait. A controversy also emerged in 2021. There were allegations of insider trading in the Aptech share case.
Up SEBI started investigation. Instead of a long legal battle, a settlement of around Rs 37 crore was reached with SEBI. Without any confession of crime so that the matter can be ended quickly. Despite this, he always remained away from big scams. His identity remained that of a reliable long-term investor who never put his credibility at stake.
His health continued to deteriorate in his last years. [sound of deep breathing] Dependence on dialysis increased. It became difficult to walk around. But the courage never diminished. One last big risk taken in 2021 was the launch of Akasa Air. Many people made fun of it. Even big people go bankrupt in the airline business.
It's crazy to start a new company in this state of health. The answer was blunt. I want that even the common Indian can fulfill his dream of cheap air travel. And then that day came, 7 August 2022. Akasa Air's first flight into the sky. Just a week before death, it was as if fate had given me the opportunity to see my last dream come true.
August 14, 2022 The lion of Dalal Street fell silent forever. Kidney disease took away India's biggest bull. The entire financial world was in shock. A lesson left behind. Bye Right Seat Diet. A proof that if you have faith in yourself and your country, even ₹5000 can turn into ₹45,000 crores. Rakesh Jhunjhunwala ji is not here today.
But every time the market falls and courage breaks. His voice still echoes today. The market is supreme. Market tops
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