Rakesh Jhunjhunwala’s rise to Rs 47,000 Crore Empire: These 3 investment mantras every investor should know

He not only ruled the stock market with his intuitive risk-taking strategies, but he also entered the aviation industry by founding Akasa Air. The legendary figure passed away in August 2022 and left the world with timeless lessons for generations to come. 

Rakesh Jhunjhunwala, the billionaire investor, rose to the heights of building an empire net worth of Rs 47,000 crore. The ‘Big Bull’ of Dalal Street possessed Rs 5,000 after which he started building his empire. This success story underlines some remarkable investment strategies that earned him a big name in the stock market industry.  

His innate risk-taking strategies were the founding pillar to his earnings. With the founding of Akasa Air, he entered the aviation industry.  

Research, a key for any investment 

Each of his investments was thoroughly researched. He minutely examined macroeconomic components, consumer behaviours and various industries before making any investments. His knack for discerning the potential of investments worked for him as he invested in Lupin, a global pharmaceutical company, long before mainstream investors saw healthcare as a profitable industry. Jhunjhunwala made significant investments in the healthcare industry. His research and going deeply into any market or industry prevented him from missing the best opportunities, something that others could not see.  

Embracing risks 

Jhunjhunwala was one to take risk, but calculative. These informed risks laid the foundation for his financial achievement. Getting into a risk meant was not a blind gamble for him, but an amalgamation of analysis and intuition. His risks were not merely putting all stakes at one place but diversifying his investments to prevent heavy loss. Initially in his career he took a risky decision of investing in Tata Tea at a time when market was experiencing a slowdown. However, his risk paid off well earning his big gains.  

Practicing patience 

He always looked for long-term gains and therefore practiced patience through compounding and long-term investments. Not one to take quick jump, Jhunjhunwala’s investments bore fruit over years. Rakesh Jhunjhunwala made a prescient investment in Titan Company Ltd, defying skeptics and holding onto his shares for over 20 years. His conviction yielded staggering returns, now valued at over ₹14,000 crore, representing a 5.4% stake in the company. 

A key figure in the stock market sector, Jhunjhunwala passed away in August 2022 but left some resourceful investment mantras for the next generations.