Why Rakesh Jhunjhunwala was referred to as “India’s Warren Buffett”

The self-made stock market tycoon Rakesh Jhunjhunwala, who died at age 62, was known as “India’s Warren Buffett.”

Advertisement

The self-made, stock market king Rakesh Jhunjhunwala, died at the age of 62. Jhunjhunwala had been ill for a few days before passing away today at Mumbai’s Breach Candy Hospital.

The veteran investor, whose net worth was $5.8 billion, was often referred to as “India’s Warren Buffett” in reference to the American philanthropist and investor-god.

The connection between the two mavericks was that they both exhibited the Midas touch—a keen intuition for market shifts and the capacity to make investments accordingly. The minute these early adopters purchased shares, their value would increase. The Indian bull, however, was among the first investment generations to gain from the economic reforms of 1991.

Their long-term investment philosophies were common in both. Giving your investments time to mature was a piece of advice shared by both investing tycoons.

“Give your investments time to mature. Be Patient for the World to discover your gems” – Rakesh Jhunjhunwala said

“Someone’s sitting in the shade today because someone planted a tree a long time ago,” – Warren Buffett

Warren Buffet and Rakesh Jhunjhunwala, both experts in their fields, recommended investors to be patient so they might enjoy investments that were completely ripened.

Jhunjhunwala’s hold in the stock market

Jhunjhunwala, a Rajasthani native who was born on July 5th, 1960, was raised in Bombay, where his father was an income tax commissioner. After Sydenham College, he registered in the Institute of Chartered Accountants of India after receiving his degree.

In 1986, he purchased 5,000 shares in Tata Tea at a price of ₹43, and within three months, the stock had risen to a price of ₹143, resulting in his first significant profit. He received ₹20–25 lakh in three years.

The Sensex was at 150 points when Jhunjhunwala started trading stocks.

Jhunjhunwala made a capital investment of 5,000 in 1985. That capital has grown to ₹11,000 crores by September 2018.

The Titan Company Ltd. of the Tata group was one of many businesses that Rakesh Jhunjhunwala owned. In terms of value, Rakesh Jhunjhunwala has the largest ownership in Titan’s shares.

Overall, he had a stake in 47 companies at the end of the June quarter. Along with owning Tata Motors, Indian Hotels, Geojit Financial Services, and had recently listed his own firm Star Health and allied insurance on the stock exchanges.

With Akasa Air’s inaugural flight earlier this month, Rakesh Jhunjhunwala also entered the aviation industry.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time