Veteran investor Rakesh Jhunjhunwala had told that he started investing in the stock market by taking money on interest and within a few months that money had doubled.
Stock market veteran Rakesh Jhunjhunwala is a well-known name today. It is generally said that before thinking of making money from the stock market, one has to prepare oneself to take the risk. The same thing happened with Rakesh as well. Describing his life, he said that his father was an income tax officer and it was from here that he got interested in the stock market.
Rakesh Jhunjhunwala had told, ‘I did not even have money. I did CA at the behest of my father. But later I wanted to try my luck in the stock market. The father had clearly said that do not come to us at all to ask for money. My brother was also a CA and during that time he used to practice. He introduced me to 2-3 clients. In those days the interest was 12-13 per cent.
Rakesh Jhunjhunwala further explains, ‘I told him that I will give 18 percent interest. First of all, a lady gave me 2.5 lakh rupees. When he asked me for security, I said that I am in security. He said okay, first you will get half the money. First you take shares worth Rs.1.25 lakh and keep it with me and then take the rest of the shares. I started working like this. Got another client, he gave me Rs 10 lakh.
Entry in stock market: Rakesh Jhunjhunwala says, ‘It was 1985 and I was just entering the stock market. At that time, in a few months, I had earned from 12 and a half lakh rupees to 30 lakh rupees. At that time I had also paid tax of Rs 4 lakh. Father never encouraged, brother’s clients did not stay. Even after marriage, two-three years remained slow.
Received AC to wife: According to Rakesh Jhunjhunwala, in the year 1989, I had put all the money on the budget. My wife had demanded that there should be AC in the house. At 6 o’clock my net worth was 3 crores and at 9 o’clock my net worth was 20 crores. I reached home and told my wife that Rekha our AC has arrived.