The Oracle Of Dalal Street

Beating the markets consistently isn’t easy, but maverick investor Rakesh Jhunjhunwala has mastered the art. Malini Bhupta chronicles the life, times and investment strategies of the man who saw the future of India

- Malini Bhupta

Bollywood and the Dalal Street have one thing in common—both are ruled by a Don. What Amitabh Bachchan is to tinsel town, billionaire investor Rakesh Jhunjhunwala is to the stock market. Millions from across India come to the city of dreams in search of their success. Jhunjhunwala, 57, is called the Big Bull because, as his friend, Radhakishan Damani, billionaire investor and founder of Avenue Supermarkets, says: “He saw the future of India.”

The billionaire investor, often called the Pied Piper of Indian equities, has remained steadfastly optimistic about the India story, even when the stock market was riddled with scams, and equities was a bad word. A chartered accountant by training, RJ (as he is known to friends) started his journey in 1985 when the Sensex was at 150 points. Today, the benchmark index has whizzed past 33,700 points, and he is ranked by the Forbes Magazine as the 54th richest Indian with a net worth of $2.8 billion. But, Jhunjhunwala hit the billionaire list a decade ago. His net worth was ₹250 crore in 2003, and by 2007, his net worth hit ₹5,000 crore, implying a compounded annual growth rate (CAGR) of 111 per cent. In contrast, the Sensex delivered 36 per cent returns in the same period. And since 2003, his investments have grown at a CAGR of 35 per cent.

For the New Year edition, Outlook Money decided to delve into the mind of this billionaire investor to see if there is a method to his success. In a marathon interview, which lasted over three hours at his office in Nariman Point, Jhunjhunwala spoke at length about his life, philanthropy, relationships, life lessons and the fine art of making money, which he seems to have mastered. And for those who wish to emulate his success in the markets, he says: “The only rule is that there is no rule.”