Sony Joseph Sony Joseph As per Forbes, Jhunjhunwala is 48th Richest person in India Achieved as a non business person but, reached it by investing in stock market but, reached it by investing in stock market Current networth is USD 2.6 Billion Current networth is USD 2.6 Billion Current networth is USD 2.6 Billion ie Approx. 18000 cr in Indian Rupees Approx. 18000 cr in Indian Rupees Inspiring factors Inspiring factors First success factor, was his passion for stock market. In 1985, he qualified as a CA and decided to be an investor. Jhunjhunwala’s father was also an investor Jhunjhunwala’s father was also an investor but, he worked in income tax department but, he worked in income tax department Invested like a part time business Rakesh was not ready for other job Rakesh was not ready for other job His motto is to be a full time investor His mother worried whether it affect the chance of getting married His father told: Do what you love be fearless but, dont ask money to me or my friends Thus, instead of other jobs, Jhunjhunwala opted high risky stock market due to his passion Second success fator Second success fator is his Risk taking capacity. Take calculated risks Started with Rs.5000 as initial capital. Never speculated Never speculated Initially done short term trades Initially done short term trades and made profits. He understood that initial capital is not enough He understood that initial capital is not enough So, he tried to get more capital Bank interest rate was 10% At 18% interest, At 18% interest, he collected Rs.2.5 lac Then, bought Tata tea shares and sold at more than three times value sold at more than three times value Again, collected Rs.5 lac at similar interest and invested. Picked shares of sesa goa Picked shares of sesa goa due to deep discount found in value after reading balance sheet. Focussed on growth potential also Focussed on growth potential also That was the method Sesa goa became a multi bagger with immense gains. Taking Calculated risks helped him to succeed in short term investing and create capital base. Jhunjhunwala’s Third success factor is Contrarian strategy. Contrarian strategy. became aggressive while others are panic Being aggressive while others are panic In 1989, while V P Singh was PM Madhu dandavate, finance minister expected to present a regressive budget expected to present a regressive budget New tax burden is expected to impose in education sector also but, Jhunjhunwala’s belief was different Jhunjhunwala’s belief was different due to coalition government. He involved in badla, a form of forward trading and invested entire capital and invested entire capital Many investors were bearish Many investors were bearish They did short selling Jhunjhunwala was bullish Jhunjhunwala was bullish about V P Singh government’s policies budget was not regressive budget was not regressive but, it was favourable but, it was favourable This resulted in a new market rally This resulted in a new market rally He invested Rs. 2.5 Cr He invested Rs. 2.5 Cr After the market rally as part of budget, it touched Rs.20 Cr. Contrarian strategy helped him Contrarian strategy helped him to become bullish while others were panic. After that, Gulf war started Jhunjhunwala sold shares and concentrated on short selling. It helped during war It helped during war Contrarian strategy in initial years helped him to become a big investor. Most important success factor, Most important success factor, was his conviction in picking quality stocks. maintained high conviction maintained high conviction If a company looks best in quality, he invested for long term he invested for long term considering the growth and sustainability. Maintained patience Currently, Currently, 40% of his wealth allocated in a stock named Titan. Accumulated from low price levels. Accumulated from low price levels. Gained more than 40 times Gained more than 40 times from this stock. He invested in pharma sector also. He invested in pharma sector also. Lupin shares Lupin shares He accumulated from it was Rs.8 It made massive gains Aurobindo pharma also accumulated at lower price. There are many such stocks he made massive gains Management quality If people are good, company will be good Competitive advantage Competitive advantage Performance in financial statements comes from the company’s competitive advantage and management quality. This was his stock picking style This was his stock picking style His another success factor, is persistence. He have seen many market crashes He have seen many market crashes, Market rally during P.V.Narasimha rao government, Harshad mehta scam, and Gulf war. India faced Economic slow down too. Between 1994 and 2002, Between 1994 and 2002, his portfolio was almost stagnant. It fluctuated between Rs.200 Cr. to Rs.250 Cr. It fluctuated between Rs.200 Cr. to Rs.250 Cr. He was persistent In 2015 market fall, he faced 30% dip in portfolio value He waited and reached better levels in next years He created Own strategy blending both trading and investment. Short term trading for short term gains Long term trading for long term gains Long term investing for wealth creation This is his investment policy. He accumulated stocks based on this and sold at maturity levels of business. These things helped him to enter Forbes Richest Indian list He became India’s biggest individual investor. Disclaimer: Education purpose only.Investments are subject to market risks Disclaimer: Education purpose only.Investments are subject to market risks