Rakesh Jhunjhunwala, the iconic investor of the Indian markets, died at the age of 62 on August 14. The man, also known for his stock picking skills on Dalal Street, breathed his last on Sunday morning. Rakesh started trading in the stock market in 1985, when in college. BSE Sensex was around 150 points at the time, and he began investing with Rs 5,000 as capital.
According to Forbes, Rakesh Jhunjhunwala’s net worth stood at $5 billion, as of 5 July 2022, zooming 15 per cent in one year from $4.6 billion. Rakesh's first big win was Tata Tea, where he made a profit of Rs 5 lakh in 1986. He bought 5,000 shares of Tata Tea at a price of Rs 43, which zoomed to Rs 143 apiece within just three months, more than tripling his invested money.
The Rise of RARE Enterprises
In 1987, Rakesh Radheshyam Jhunjhunwala married Rekha Jhunjhunwala, who is also a stock market investor. In 2003, Rakesh Jhunjhunwala set up his own stock trading firm RARE Enterprises, known to derive its name from the first two initials of his and his wife Rekha’s names — ‘Ra’ from Rakesh; ‘Re’ from Rekha. At present, the value of his equity portfolio together with his wife Rekha Jhunjhunwala stands at over Rs 30,000 crore.
Rakesh Jhunjhunwala’s stock list is probably one of the most in-demand items in the Indian stock market. Every trader and investor wants to know what the big bull is up to. Which stock is Jhunjhunwala buying? These are some questions that a common investor wants to know about Rakesh Jhunjhunwala’s portfolio.
As of June 2022, there are a total of 33 stocks in Jhunjhunwala’s kitty where he holds more than a 1% stake in the company.
Now we are all aware of his love for the Tata group. After all, Titan Company Ltd is the biggest stock in Rakesh Jhunjhunwala’s portfolio with a value of around Rs 11,000 crore. But Rakesh Jhunjhunwala’s portfolio is more than just Tata stocks. It is a perfect mix of large, mid and small cap stocks, and not just in one, but several sectors.
In terms of percentage holding at the end of June 2022, Jhunjhunwala had a significant 23.37 per cent stake in Aptech. He has 17.49 per cent shareholding in Star Health and Allied Insurance Company, 14.43 per cent in Metro Brands, 12.62 per cent in NCC, 10.03 per cent in Nazara Technologies, 9.81 per cent in Rallis India, 8.48 per cent in Bilcare, 8.22 per cent in Agro Tech Foods, 8.04 per cent Va Tech Wabag Ltd, and 7.54 per cent in Geojit Financial Services.
He also has investments in Jubilant Pharmova, Crisil, Jubilant Ingrevia, Autoline Industries, Karur Vysya Bank, Fortis Healthcare, Federal Bank, Anant Raj, Dishtram Carbogem Amcis, Indian Hotels Company, Wockhardt, Indiabulls, Tata Motors, and Tata Communications, in the range of 6.76 per cent to 1.08 per cent. Even as his portfolio saw a drop in the recession of 2008, he recovered the losses by 2012. Jhunjhunwala, with his ventures as an entrepreneur and his portfolio, was among the richest people in the country.
Rakesh Jhunjhunwala's most invested five sectors
| Sector | Weightage |
| Jewellery | 34.00% |
| Insurance | 24.21% |
| Automobile | 8.93% |
| Banks | 4.64% |
| Credit Rating Agency | 3.44% |
Just like jewellery, Jhunjhunwala is very bullish in India’s financial sector. This is evident from his portfolio, 4.64% exposure to banks, 3.44% to credit rating agencies and 1.07% exposure to financial services stocks.
In the December 2021 quarter, Rakesh Jhunjhunwala added 1.78 crore shares of Star Health and Allied Insurance Company Ltd to his portfolio. These shares are valued at Rs 6,274.5 crore as of June 17, 2022. This makes Star Health the second-biggest stock in Rakesh Jhunjhunwala’s portfolio.
But why is he called 'India's Warren Buffet?'
This is because he was buying the business and not the stock.
As we all know, Rakesh Jhunjhunwala knows how to pick stocks for the long term. Take the example of Titan Company Ltd which he has been holding since 2002-03. The stock is up by 296.57% in the past 5 years. He first invested in the stock way back in 2002-03 when the share price was around Rs 3 to Rs 4. The stock is trading at Rs 2,472.60 as of Aug 12, 2022.
Rakesh also loves cash-rich companies just Like Warren Buffett. He is always on the lookout for companies with huge cash reserves. This is one of the reasons behind his love for CRISIL Ltd. Rakesh & Rekha Jhunjhunwala started investing in CRISIL in 2003 by picking up 10,000 shares of the company when the share price was around Rs 35. The stock is up by 77.73% in the past 5 years. The stock is trading at Rs 3,252.00 as of Aug 12, 2022.
Just like Buffet, Rakesh is a big investor in companies with a focus on branding, customer loyalty, and patents.
Also called the 'Bold Risk Taker', Rakesh was not afraid of investing in small or new companies. This is because he was an extremely aggressive investor. One such example is Delta Corp Ltd. This stock has nearly 1.2% weightage in its portfolio. Delta Corp Ltd is the largest gambling company in India. It accounts for 55% of the market share of the organized casino market in India.
Jhunjhunwala’s latest stint as an investor and promoter was Akasa Air. He had recently teamed up with ex-Jet Airways CEO Vinay Dube and former IndiGo head Aditya Ghosh to launch Akasa Air - which took to the skies last week. He was seen in a wheelchair at the launch of Akasa Air. He invested $35 million for an estimated 40 per cent stake in the airline, which aims to have 18 aircraft within a year from the launch, and 72 over the next five years.
He once said, “Risk is the essence of life. If you don't risk, you are nothing.”
Jhunjhunwala will be missed by the country and more so, by the investor market. He will be remembered as the ‘Big Bull’ of Dalal Street and Índia’s Warren Buffet’.