Friday, October 30, 2009

How Rakesh Jhunjhunwala became a crorepathi (millionaire)!!

Rakesh Jhunjhunwala said the following during a recent interview how he made his millions and name in the Indian stock markets. If you go through the transcript you will see how easy it is to make money, you just have to invest in a good stock and let it zoom!! ;)

Sesa Goa had a big fall because there was a depression in the iron ore
industry and then prices for the next year had been considerably raised
about 20-25%. The stock was available abysmally cheap around Rs. 25-26.
There was a projection of a very good growth in profitability in the next
year but nobody seemed to believe it.

When I saw the facts, I wanted to invest but I did not have capital. Between
1986 and 1989 I must have earned Rs 20-25 lakhs. After 1986, the market went
into a big depression for two three years but I put that money in Tata Power
and the Tata Power stocks became about 1100-1200.

Now I was worth Rs 50-55 lakhs. I bought 4 lakh shares of Sesa Goa in
forward trading, worth Rs 1 crore. I sold about 2-2.5 lakh shares at Rs
60-65 and another 1 lakh at Rs 150-175. The prices then went up to Rs 2200
and I sold some shares. I did some other trading too. I had net worth of
about Rs 2 - 2.5 crore.