The investment adventures of “Buffett India”
India's most famous stock investor, Rakesh Jhunjhunwala (Rakesh Jhunjhunwala), known as India's “Warren Buffett”, died on August 14, local time, at the age of 62. People are paying tribute to this self-made billionaire, whose wealth grew as India's economy grew. On the Forbes list of the richest people, his latest net worth is fixed at 5.8 billion US dollars.
In one of his most recent adventures, he helped launch the low-cost Akasa Air, which first flew last week. According to local media, Jhunjhunwala is in a wheelchair. The airline said it was “deeply saddened” by the news of his death. “We at Akasa are very grateful that Jhunjhunwala is our early believer and trust and trust in building a world-class airline,” it said in a statement.
Also known as the “big bull” of the country's Mumbai Stock Exchange, Jhunjhunwala is known for taking risks in the market and investments. Businessmen and bankers who have worked with Jhunjhunwala for more than 30 years in the financial capital of India said that Jhunjhunwala's communication skills helped small investors understand the stock market. His insight into the economy and companies made him a TV personality.
India's Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) wrote on Twitter: “An investor, a bold risk-taker, a skilful understanding of the stock market, and clear communication — he is a leader in his own right.” “I have strong confidence in India's strength and capabilities.”
He has always been optimistic about India's economic prospects. He believes that as the third-largest economy in Asia, the Indian economy is “entering a golden age,” and expressed the hope that “my Indian compatriots are as optimistic as I am.”
Jhujhunwala was a big public supporter of Indian Prime Minister Narendra Modi (Narendra Modi). After his death, Modi tweeted praising him as “indomitable, energetic, witty and insightful, and has left an indelible contribution to the financial world. He is also passionate about India's progress. His death is sad”.
Uday Kotak (Uday Kotak), the CEO of Kotak Mahindra Bank (Kotak Mahindra Bank), is his middle school and college classmate, and said that Junjunwara “thinks the Indian stock market is undervalued.” He's right.”
Kotak tweeted: “The understanding of financial markets is amazingly sharp. We talk a lot, especially during COVID-19. I'm going to miss you, Rakash!”
From a poor kid who borrowed money to trade stocks to a billionaire
During Kim Junwala's 37-year career, he invested in many stocks, but five stocks contributed greatly to his wealth growth. They are Titan, Sesa Goa, Lupin, CRISIL, and Star Health, respectively.
During Kim Junwala's 37-year career, he invested in many stocks, but five stocks contributed greatly to his wealth growth. They are Titan, Sesa Goa, Lupin, CRISIL, and Star Health, respectively.
First Big Adventure: Scavenging Tata Tea and Iron Ore
According to reports, Kim Jun-wala began to get involved in the stock market while in college. Her father is a tax officer. Her interest in stocks stemmed from her father discussing the market with friends. Although his father mentored him in the market, he never gave him money to invest. Jin Junwala, who has the personality of an adventurer, can only secretly ask her cousin to borrow 5,000 rupees (about 63 US dollars) and use this as capital to enter the stock market.
Jin Junwala's first pot of gold came from 5,000 shares of Tata Tea (Tata Tea) shares bought in 1986. At the time, he used borrowed money to buy 5,000 shares of Tata Tea at a price of 43 rupees per share. As a result, the stock rose to 143 rupees per share within 3 months, which more than tripled. This was his first huge profit. He believes the market is underestimating the potential of a company seeking growth at a time when production continues to rise.
After that, Kim Junwala also leveraged shares in Sesa Goa, an iron ore exporter under the Vedanta Group. This “big bet” brought him his first fortune of 10 million rupees. At a time when the iron ore market was sluggish, he bought the shares at a price of Rs25-26 each. He sold the shares in three batches — the first batch of 250,000 shares at a price of Rs 65, the second batch of Rs 175, and the final batch of Rs2,200. This return is close to 100 times.
Second Adventure: Buying a heavily indebted Titan
With previous wealth accumulation and experience, Kim Junwala became a partner at asset management company Rare Enterprises to manage her own investment portfolio. At this stage, Kim Jun-wala showed her understanding of value investing.
Titan mainly produces fashion accessories such as jewelry, watches, and glasses. Titan is said to be Kim Junwala's favorite stock. From 2002 to 2003, when he first bought Titan shares from a well-known New York-based fund management company, the company performed badly, and its debt was several times its market value.
Kim Junwala began buying this stock in 2002-2003, when the share price hovered around 3-4 rupees. He continues to increase his holdings in the watch and jewelry manufacturer, and even during the 2008 global recession, he only sold about 600,000 of the 4.4 million shares. In late 2012, he raised his shareholding ratio to 10.28%. Currently, the Laksh Jinjunwara family holds 5.05% of the shares worth 1,108.1 billion rupees.
The third big adventure: the low-suction high-throw method is pure green
Lupin is an Indian multinational pharmaceutical company that is one of the world's largest generic drug companies by revenue. The company's areas of focus include pediatrics, cardiovascular, anti-infectives, diabetes, asthma, and anti-tuberculosis.
He began buying Lupin shares in 2003, when Lupin's market capitalization was around 5 billion rupees. In June 2008, he held 4.29% of Lupin's shares worth 1.54 billion rupees. In September of last year, when the company's market capitalization was around 440 billion rupees, Kim Junwala gradually reduced her shareholding and completely withdrew from the company.
CRISILCRISIL is India's first credit rating agency that provides ratings, research, risk and policy consulting services to investors, and is a US $S&P Global (SPGI.US)$ A subsidiary of.
Kim Junwala began buying CRISIL shares in 2003. After initially purchasing 10,000 shares, he later increased his holdings by 5.5 million shares in September 2006. Shares are bought at prices between 400 and 500 rupees. In 2013, Laksh Jinjunwara sold 400,000 shares for over Rs460 million. Currently, he owns 5.48% of the shares in this rating agency worth 13.2 billion rupees.
Star Health is an Indian multinational health insurance company that provides services in health, personal accident and overseas travel insurance directly and through various channels such as agents, brokers, and online.
Kim Jun-wala made a huge profit from her investment in Star Health. Rakesh and Rekha hold a total of 17.26% of the shares worth 69.8 billion rupees. From March 2019 to November 2021, before the company's IPO, Kim Junwala made 9 transactions at an average price of Rs 155.28 per share to buy shares of the insurance company. His total investment in the company was approximately Rs 12.87 billion. The initial price in November 2021 was around 900 rupees. Despite poor trading performance on the first day, Kim Junwala received huge returns.
As of June of this year, Kim Junwala publicly held 19 shares. In addition to her specialty Titan, CRISIL, and Star Health, which account for a significant share of the portfolio, the remaining holdings include Indian footwear chain Metro Brands, India Hotels Co., Ltd., Tata Communications, Commonwealth Bank, Va Tech Wabag focusing on municipal and industrial water treatment, pharmaceutical CMO/CDMO suppliers Jubilant and Dishman Carbogen Amcis, and employees Pharmaceutical packaging manufacturer Bilcare, crop care company Rallis, vocational training provider Aptech, Indian edible oil and branded food company Agro Tech Foods, Indian real estate developer NCC Limited, DB Realty, Prozone Intu Properties, and auto parts manufacturer Autoline Industries.
Jin Junwala is good at investing in major consumer stocks, including pharmaceuticals, consumption, insurance, etc. He often said, “What matters is not what you buy, but the price you buy.” This investment philosophy helps him make decisions when buying troubled stocks such as Titan and Lupin. Regarding value investing, he often said, “If the girl is beautiful, the suitor will come.”
India's “Buffett” investment belief: trading is the only thing I want to do in life
Although stock investment in India has yet to become an important source of household savings, accounting for less than 5% of assets, this South Asian country has experienced a boom in retail stock market investment in recent years.
Although stock investment in India has yet to become an important source of household savings, accounting for less than 5% of assets, this South Asian country has experienced a boom in retail stock market investment in recent years.
Since the outbreak of COVID-19 in early 2020, India has added around 58 million new retail investors, surpassing the population of South Korea.
Kim Junwala, known as the “Big Bull” in India, said in an interview with Bloomberg News in 2005 that his strategy for selecting stocks prior to the stock growth cycle was inspired by American billionaire George Soros and Hong Kong investor McGarver, and Warren Buffett of Berkshire Hathaway was one of his role models.
Jhunjhunwala told Reuters that since India's economy was liberalized in 1991, the growth of the Indian stock market has been an important factor in his success. India's main Sensex index rose about 40 times during this period. $Ishares BSE SenseXIndia Tracker (ISXIF) $ “I just know about trading and investing. I don't want to do anything else in my life,” Jhunjhunwala told Reuters 10 years ago. “I'll make deals until the day I die.”
In a word, Kim Jun-wala has passed away, leaving behind his wife and three children. He once called his wife his only customer. He left shares in around 30 Indian companies and frequently cites investment mottos such as “the trend is your friend” and “the only rule I have is no rule”.
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