When it comes to investing, Rakesh Jhunjhuwala is the most respected name as he was a prominent stock market investor who made billions through investing. He initially started with thousands and turned them into billions through his value investing. His investment style and portfolio are still studied by investors who try to mirror them to achieve the same returns. He is often referred to as the ‘Warren Buffett of India’ and has a live portfolio managed by his wife, which has a current value of Rs. 44,913 crores with 27 stocks. As a stock market investor, learning about Rakesh Jhunjhuwala’s journey and understanding how Rajkesh Jhunjhunwala became a billionaire can be highly beneficial.

This blog will help you understand how Rakesh Jhunjhunwala became a billionaire through his investing style and ideal stock identification.

• Rakesh Jhunjhuwala was a prominent stock market investor often called the ‘Warren Buffett of India.’
• After his death in 2022, his wife, Rekha Jhunjhunwala, now manages his portfolio worth Rs. 45,913 crores.
• Investors can understand his journey of how he became a billionaire for a better investment approach.

Rakesh Jhunjhunwala was a Chartered accountant who started investing in the early 1980s with just a few thousand rupees. He quickly developed an interest in investing and started to identify undervalued stocks that showed high future potential for investing. His investment style, which is called value investing, allowed him to find undervalued stocks that increased heavily over time, making him crores of rupees in profit. Between 1986 and 1989, he also invested in blue-chip companies such as Tata Power, which provided him with substantial returns. His early investments in companies like Vedanta also helped him achieve his billionaire status. His largest shareholding is in Titan Company Ltd, the highest contributor to his billionaire status.

Here are some of the stocks in Rakesh Jhunjhunwala’s portfolio before his death in 2022 with their current value:

• Titan Company Ltd: Rs. 17,483 crores
• Metro Brands Ltd: Rs. 4,832.73 crores
• Tata Motors Ltd: Rs. 4,483.3 crores
• NCC Ltd: Rs. 2,476.51 crores
• Indian Hotels Co Ltd: Rs. 1,939.41 crores

Rakesh Jhunjhunwala always believed that one can learn the most about investing by making mistakes and learning from them. He maintained his bullish view of India and believed that the Indian stock market would provide substantial returns to investors in the long run. Here are some key learnings from Rakesh Jhunjhunwala’s journey to becoming a billionaire:

Long-term investing

Rakesh Jhunjhunwala was a value investor and always believed that stocks offer decent returns if they are held for the long term. This value investing style reduces the impact of short-term fluctuations and offers good returns over time.

Extensive research

Rakesh Jhunjhunwala was known to conduct extensive stock and market research to ensure that the stock was undervalued and had high growth potential. His focus was always more on financial analysis than technical analysis.

Patience

One of the most important traits of his investing style was patience. Even when the market was consolidating, and his investments dipped in price, he kept his holdings and rarely sold them in a bearish market.

Self-belief

Rakesh Jhunjhunwala believed that all investment decisions must be based on self-belief without any external influence. Hence, investors should avoid investments based on herd mentality.

Diversification

Jhunjhunwala believed that diversification is one of the most important factors in avoiding losses and maintaining positive portfolio health.

Volatility

Jhunjhunwala believed that the stock market is always volatile, and it is up to investors to pick ideal stocks and monitor their portfolios to mitigate losses and increase profits.

Rakesh Jhunjhunwala was the pinnacle of investing; he started with just a few thousand rupees and turned them into billions over time through his ideal stock identification and investment style. Now that you know how Rakesh Jhunjhunwala became a billionaire, you can adopt the key learnings from his investment style to ensure your investments are successful.

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