There is no need to wait to amass a large amount to start investing. Rakesh Jhunjhunwala started investing when he had just Rs 5,000, and so can you
Many believe that you need a huge sum of money to invest in the stock market. But the reality may be different. The story of India’s Warren Buffett, the legendary investor Rakesh Jhunjhunwala, who passed away on August 14, 2022, at the age of 62, shows that. He started investing with just Rs 5,000, according to various reports. However, what helped him that he kept analysing the market trends and kept investing in stocks that he saw potential in as per his research and observations.
Jhunjhunwala started investing because he was curious. He had heard his father’s discussions on the market with friends and that had piqued his curiosity.
However, rather than directly introducing him to the market, Jhunjhunwala’s father advised him to understand how the market functions first. He started investing after borrowing money from his father’s clients, promising them that he would return them a higher amount.
He borrowed Rs 5,000 in total and invested the money in 1985. About 33 years later, his portfolio was worth a whopping Rs 11,000 crore, say media reports.
There is some truth in the idea that no investor is born with luck or investing acumen. It is developed over time, with curiosity and knowledge. The big bull of Dalal Street first tasted success in 1986, after he bought 5,000 shares of Tata Tea at Rs 43 apiece (with a total investment of Rs 2,15,000). Within just three months, the share price increased to Rs 143 apiece and the total investment rose to Rs 7,15,000.
With respect to the ever-evolving market trends, Jhunjhunwala stated, “Anticipate trends and benefit from them. Traders should go against human nature."
He was never shy of taking on challenges. When the veteran investor launched Akasa Air, several questioned his decision to start an airline amid a declining market. Jhunjhunwala said at the time, “…I'm prepared for failure. It's better to have tried and failed than not tried at all,” according to an AFP report.
Jhunjhunwala’s legendary stock market journey will continue to inspire investors.