“All I’ve known is trading and investing. I don’t want to do anything else in life,” Jhunjhunwala told the Reuters news agency 10 years ago. “I’ll call it quits the day I die.”
·
Jhunjhunwala
died of sudden cardiac arrest the age of 62. He died at Breach Candy hospital
at 6.45 am on 14th August, 2022
·
While Jhunjhunwala
had been keeping unwell for some time and was admitted to Breach Candy Hospital
in July for a check-up
·
By
the time of his unfortunate demise, he had done enough to restore the power and
glory of a stock market badshah, including run-ins with the markets regulator,
which he mostly settled without accepting wrongdoing. He was the risk-taker who
became an icon for a generation of investors by showing them that an ordinary
person could make a fortune with disciplined and informed investing. It is easy
to see him as a man with the Midas touch. Sure, the stocks he picked over a
glittering four-decade-long career gave him returns ranging from 10X to 100X,
though there were duds as well. The trick was he got it right more often than
he got it wrong, and he wasn’t worried about churning his portfolio regularly,
which gave him phenomenal gains.
Background
·
Born
on July 5, 1960, and his investment since the mid-1980s have grown to $5.8
billion or Rs 46,000 crore as of August 2022.
·
Jhunjhunwala
was born on 5 July 1960 and grew up in a Rajasthani Marwari family, in Mumbai.
His father Radheshyam Jhunjhunwala worked as a Commissioner of Income Tax. His
surname indicates that his ancestors belonged to Jhunjhunu in Rajasthan. He
graduated from Sydenham College and thereafter enrolled at the Institute of
Chartered Accountants of India.
·
Jhunjhunwala
started dabbling in stocks while in college and went on to manage a stock
trading firm
·
Known
as India’s Warren Buffett, he was always bullish on India, and a supporter of
the BJP government and its economic policies.
·
He
invested in- the stock markets in his personal capacity and through RARE
Enterprises, an asset management firm. The name ‘RARE’ is made up of the first
two letters of his and his wife’s first names (Rakesh and Rekha).
·
He
held directorship in three firms — RARE Equity Private ltd, RARE Family
Foundation and HOPE Film Makers, besides at five limited liability partnership
firms. He holds substantial stake in about three dozen companies including
Titan, Tata Motors, Crisil Ltd, Karur Vysya Bank, Aptech, Canara Bank, and
Fortis Healthcare.
·
Other
than Akasa Air that he founded recently, Jhunjhunwala is also a promoter of
Star Health and Allied Insurance, with he and his wife together holding a 17.49
per cent stake in the company. The couple hold 5.05 per cent in Titan, 5.48 per
cent in Crisil and 3.64 per cent in Federal Bank. His other big investment holdings
include Titan Company, where he along with his wife Rekha held 5.05 per cent
stake. He owns 1.09 per cent stake in Tata Motors.
His
Attitude
·
An investor since his college days at Sydenham
in Mumbai, Jhunjhunwala got it right more often than not because he was never
scared to ask top executives of companies tough questions. Indeed, his presence
at such meetings, where he sat at the back but took centre stage with his
piercing questions, became a source of dread and learning for the companies
·
Jhunjhunwala’s
communication skills helped small investors understand the stock market, said
businessmen and bankers based in India’s financial capital, Mumbai, who had
interacted with him for more than 30 years. His insights on the economy and
companies made him a TV celebrity
·
Jhunjhunwala
was informal with the staff who served him, and occasionally joked with them.
Once when he called for a much cheaper drink instead of his regular tipple, a
waiter asked him the reason. “Arrey, dost, markets don’t make money every day,”
RJ quipped. Perhaps it was his way of saying it was a bad day at the office.’
·
RJ’s
keen interest is not restricted only to his investments—he takes an equal
interest in the lives of people he meets and works with.
·
That he can rattle off dozens of mobile
numbers only speaks volumes about his ability to retain facts and figures.
·
If
there is one thing that makes Rakesh Jhunjhunwala the ace stock picker that he
is, then it has to be his curiosity. He is interested in everything about a
company—management, decor of a company’s headquarters, and behaviour of
employees. Companies claim that he asks all kinds of questions before
investing. In fact, he even keenly observes the decor of a company’s
headquarters
From
whom was he got inspiration
·
Jhunjhunwala,
known as “Big Bull” in India, said in an interview with Bloomberg News in 2005
that his strategy of picking stocks ahead of their growth cycle was inspired by
US billionaire George Soros and Hong Kong investor Marc Faber, while Berkshire
Hathaway Inc’s Warren Buffett was one of his role models.
Love
for the nation and his community
·
Rakesh
once said his community owned the country. Asked to explain, he said that he
was from the Agrawal clan of the Banias, as were people from Jindal, Bansal,
Goyal, Mittal, Singhal and several other gotras. Then he reeled off a long list
of well-known tycoons, all Agrawals, and asked: “So, boss, do we own the
country or not?”
·
For
a man who made more money on the stock market than almost anyone else, he was
endearingly more optimistic about India than about the market, keener to talk
about the country than his wealth. His political views veered towards strong
Hindu assertion, and as usual neither his language nor his gestures were
restrained
·
he
told CNBC-TV18 that India’s economy, Asia’s third-biggest, was “entering a
golden age,” expressing hope that “my fellow Indians are as optimistic as I
am”.
·
He
believed that Stock in India is undervalued
·
Last
week before his demise , In an interview with news channel CNBC-TV18,
Jhunjhunwala said despite the unfavorable economic conditions across the world,
"the Indian market will grow, but at a slower pace."
Nation’s
Reaction to his death
·
Expressing condolences to Jhunjhunwala family and
friends, Prime Minister Modi described him as “indomitable”. “Full of life,
witty and insightful, he leaves behind an indelible contribution to the
financial world. He was also very passionate about India’s progress. His
passing away is saddening,”
·
Ratan Tata, Chairman Emeritus of the Tata Group,
on Sunday said ace investor Rakesh Jhunjhunwala will always be remembered for
his acute understanding of the markets as well as for his jovial personality,
kindness, and foresightedness.
·
N Chandrasekaran,
Chairman, Tata Sons, said, “Rakesh Jhunjhunwala believed in India and the sheer
potential of the country. This conviction led him to consistently make bold
decisions throughout his life and career. He had tremendous regard for the Tata
Group. Mr. Jhunjhunwala’s passing is an irreparable loss and we extend our deep
condolences to his family and friends.”
·
Extremely
saddened by the untimely passing away of the most legendary investor that India
has had. Shri Jhunjhunwala inspired an entire generation to believe in our
equity markets with his brilliant views. We will miss him. India will miss him
but we will never forget him,tweets Gautam Adani
A
Family Man
·
He
was very much a family man. His father and wife featured often in his
conversation. He wanted desperately to have children and was overjoyed when he
got them. He loved films and financed a few; his seated dance despite being
bound to a wheelchair on his 60th birthday has gone viral after his passing —
and is lasting proof of his zest for life. He bought a big plot of land on
Malabar Hill and built a mansion, but he had also started to give generously and
said he wanted to do more.
·
He
trusted people. He declined to visit the university that he had funded, saying
it had people to run it properly. He claimed he had given 40 per cent sweat
equity to key people at his Akasa Air. “They have enough of a stake, so I don’t
have to worry. I don’t want to answer to anyone.” Staying true to that, he
always invested only his own money
·
Video
of his dancing-
The
bottom line of the demise
·
“Main
zindagi ka saath nibhata chala gaya, har fikr ko dhuen mein udata chala gaya.”
This lyric from the 1961 Bollywood film 'Hum Dono' translates as “I kept up
with life and let my worries go up in smoke”. Billionaire investor Rakesh
Jhunjhunwala identified with the line, and it
was not unusual to hear him humming the retro Hindi tune, a glass of
Johnnie Walker Blue Label whisky in hand, when he visited Geoffrey’s, says
Prince Thangjam, the pub’s bar and
restaurant manager.
·
While Jhunjhunwala
had been keeping unwell for some time due to Kidney ailment and was admitted to
Breach Candy Hospital in July for a check-up
·
When asked about his best investment which he
would encourage others to consider as well, the ace investor had told the Economics
Times, "My worst investment has been my health. I would encourage
everybody to invest the most in that."
·
TN NINAN in Business Standard says- “Our final
meeting was in Delhi, where he had come to meet political bigwigs from the
prime minister downward. At lunch, to which he had invited Shekhar Gupta and
me, he was in his wheelchair and in poor shape. He insisted that his medical
indicators were good, but the old fire was missing and an attendant appeared
periodically to give him pills. One was left with a sense of foreboding about
this larger-than-life figure.”
·
He was also suffering from chronic kidney
disease, was on chronic dialysis
·
He had a very poor lifestyle. Earlier in 2012,
Jhunjhunwala had that a 50-year-old man's life expectancy was constrained due
to his daily consumption of six pegs of whiskey, 25 cigarettes, lack of
exercise, and eating voraciously
Symptoms
·
In an interview on Twitter a week ago before his
demise, He was seen on a wheelchair, where he spoke on Indian market, Public
Sector banks, digitisation in India and how the country should thank Mukesh
Ambani for it. He could be seen for gasping for long breaths and his speech was
slow and full of breaks. He was clearly seen very ill and needed external
assistance.
·
Link:
https://twitter.com/i/status/1556611064619741184
Status during death
·
He was worth $5 billion and is survived by his
wife, two sons and a daughter.
·
He was India’s 36th richest Indian
·
He was one of the India’s wealthiest man who
came in the top 500 list of Forbes 2022
·
Rakesh Jhunjhunwala. Whose net worth is nearly
₹48,000 crore, had plans to give away a large portion of his wealth to charity
- starting from 2025. In a 2021 interview, the Warren Buffett of India
mentioned donating it to his charitable organisation, RARE Family Foundation
·
publicly held 32 stocks on exchanges and his
wealth in these shares is valued at around ₹32,000 crore so far in August. The
biggest stocks in his portfolio are - Titan, Star Health and Allied Insurance
Company, Metro Brands, Tata Motors, and Crisil in value terms
·
Jhunjhunwala had investments in more than three
dozen companies, the most valuable being watch and jewellery maker Titan, part
of the Tata conglomerate. His portfolio includes companies like Star Health,
Rallis India, Escorts, Canara Bank, Indian Hotels Company, Agro Tech Foods,
Nazara Technologies and Tata Motors
Last
public Appearance at Akasa and Risk taking capacity till the last moment
·
Rakesh Jhunjhunwala's last public appearance was
at Akasa Air's inaugural flight
·
In July 2021, he invested in Akasa Air, a
low-cost airline in India, investing 400 million dollars for a 40% stake in the
airline. As of January 2023, the new airline has 14 aircraft and flies to 11
cities. Before his death Rakesh had increased his stake in the airline to 46%
becoming the largest stakeholder in the company
·
The 62-year-old's entry into the
capital-intensive sector raised eyebrows earlier this year, with many pointing
to the chequered history of billionaire-backed airlines in India as well as the
daunting global economic outlook. Jhunjhunwala had invested $35 million for an
estimated 40 percent stake in the new airline.
·
"A lot of people question why I've started
an airline. Rather than answer them, I say, I'm prepared for failure," the
billionaire said.
·
Rakesh Jhunjhunwala, who held 40 per cent stake
in Akasa Air, appeared publicly for the last time at the airline's inaugural
flight between Mumbai and Ahmedabad on August 7.
·
"Normally, a child is born in nine months.
We (Akasa Air) took 12 months. It would not have been possible without the
cooperation of the Ministry of Civil Aviation," Jhunjhunwala had said in
his short speech at the Mumbai airport.
·
Aviation Minister Jyotiraditya Scindia had
virtually inaugurated the first flight of the airline from Delhi.
What after the demise
·
Part of his rich legacy will be the
philanthropic work he did, having committed 25% of his wealth to the cause of
improving educational and nutrition standards.
His other side
·
Geoffrey’s
was the only pub in the area with an English feel to it, in terms of the music
and décor. This seemed to appeal to Jhunjhunwala for some reason, and was among
the reasons he hung out there
·
The
Big Bull liked listening to old English songs but sometimes played Hindi songs
on his phone and sang along while he was at the watering hole. He also enjoyed
English poetry and the staff sometimes heard him reciting verses aloud
·
In
an interview with friend and associate Ramesh Damani on his 60th birthday in
2020, RJ, as Jhunjhunwala is popularly referred to, said he wanted to develop a
hobby that would keep him occupied in his sunset years, and mentioned singing
as one of the things he hoped to learn
·
Thangam,
who served Jhunjhunwala for nearly five years at the pub, said that his
favourite dish was “boiled egg with a customised masala”, in a plate garnished
with tomatoes, garlic and vegetables — Jhunjhunwala was fussy about the way
they were arranged
Cookie
content
·
He
has advised many Bollywood actors for investment.
o
Shraddha
Kapoor: In an
interview with ET Now, Shraddha Kapoor and Rakesh talked about the ups and downs
of life, career and each other's success mantras. When asked also sought stock
investment advice for newcomers to the stock market. In response, he said that
stock investing is a full time profession as it requires more monitoring than
other investments. He explained that one should plan their stock market
allocation in the same way as they plan for other investments such as buying a
house or other regular income plans.
o
Kareena
Kapoor Khan: “The
stock market is a requirement of this country. And just as in any field, there
are manipulators and there are good people. It is a place where people have to
put their savings and it is a medium by which money goes from savers to users.
The stock market is like a woman, always commanding and always mischievous and
always uncertain, always volatile, always exciting. I will personally advise
you that you should invest a good amount of your money in the stock
market."
o
Priyanka
Chopra Jonas: The
most important thing to succeed in the stock market is your attitude towards
it. I think first is to realise is the market is supreme. You must recognise
excess and you benefit from the excesses. In the stock market, something you
buy for ₹5
and sells for ₹50
and you must have an attitude that with time everything changes and passes. We
have to treat stock market in situation seperately. The most interesting aspect
about investment is the kind of mental and intelligence you have to use. You
don't only have to know about material matters or figures, you got to judge
character of people, you got to judge the quality of entrepreneur
o
Sonam Kapoor: When asked if investing in stock market is a gamble,
he said, “I can tell you life is a gamble, marriage is a gamble as everything
is a probability.
His
last interview- Some keypoints
·
Akasa
Air is a frugal airline and will be very competitive in the aviation space, ace
investor Rakesh Jhunjhunwala said on August 8, a day after the Mumbai-based
company launched commercial operations.
·
There
will be a lot more flying as discretionary spending per capita goes up, he
added. Jhunjhunwala also cited civil aviation minister Jyotiraditya Scindia's
prediction that India expects to reach 40 crore air travellers in the next four
years.
·
Further,
speaking on the sectors he is bullish on, Jhunjhunwala noted that India's
telecom sector is not a good sector to invest in as it constantly requires
investment.
·
Speaking
on the digitization landscape, Jhunjhunwala thanked Mukesh Ambani for the
changes he has brought about in India. He said: “The low cost of communication
whether in voice or in data is what has caused digitization in this country and
we cannot thank Mr Ambani more for this; I think this country has to remain
eternally grateful to him for what he has done to the telecom sector.”
·
While
commenting on startups, Jhunjhunwala added: “There is more downside risk than
upside opportunity in new age start-ups.”
Controversies
·
In 2021, Jhunjhunwala was investigated for
insider trading, for unusual dealing in shares of Aptech Computers. SEBI had
alleged that Jhunjhunwala and others traded in Aptech when in possession of
unpublished price sensitive information (UPSI). In September 2016, Aptech had
announced its foray into the preschool segment. As per the SEBI order, this was
an UPSI between 14 March 2016 and 7 September 2016, the date of official
announcement. In July 2021, the SEBI had settled the issue after a total
payment of ₹ 35 crore from Jhunjhunwala and his associates. Jhunjhunwala paid ₹
18.5 crore and his wife paid ₹ 3.2 crores
His quote
·
“Passionate
investors always make money in stock markets. You will never fail in any work
if you do it with passion," Rakesh Jhunjhunwala said.
Bibliography
·
https://indianexpress.com/article/cities/mumbai/rakesh-jhunjhunwala-death-mumbai-8088959/
·
https://www.outlookindia.com/business/the-oracle-of-dalal-street-rakesh-jhunjhunwala-news-216304
·
https://en.wikipedia.org/wiki/Rakesh_Jhunjhunwala
-
Researched
by Soumyadeep Pramanick
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