Rakesh Jhunjhunwala Case Study

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Rakesh Jhunjhunwala is reckoned as India’s most successful investor and trader of modern times. He needs no introduction to the investor community. The legendary investor is also known as the Warren Buffet of India. It will quite interesting to have a look at his the success story from Rs.5000 to 8000 Crore. Rakesh Jhunjhunwala was born on 5th July 1960. His father was an Income tax officer. His father was interested in stocks and used to discuss about the stock markets with his friends. Rakesh as a child would listen to them. Once he asked his father why the prices fluctuate. His father told him to check the news. For Rakesh, it was the first lesson of the stock markets -news makes the prices fluctuate. He was fascinated by stocks and found it interesting. He expressed his wish to get into stock markets to his father. He told him to do whatever he wanted in life, but get some professional qualification before that. Rakesh then took up…show more content…
After 1986, the market went into a big depression for two three years. Rakesh Jhunjhunwala sensed the opportunity and put money on Tata Power and the Tata Power which later gave him handsome returns. Rakesh Jhunjhunwala bought 6 crore shares of Titan in 2002-03 at an average price of around Rs 3. This was to be one of the best investments of his life. After Jhunjhunwala’s purchase, the stock then rose to touch Rs 80 and later fell to Rs 30. He did not sell a single share as he thought that neither EPS nor PE had peaked and there was a lot of growth still to come. It was indeed one of the wisest decisions. The stock zoomed to higher levels year after year and proved to be a huge multi-bagger. In 2006 he bought Lupin around Rs.150. From 2006 to 2008, Lupin did not grow much even though the markets doubled. Over the next six years, the share price jumped to ₹7, 500. Lupin gave Jhunjhunwala enormous growth as the stock continues to make new highs every now and

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