There is a reason why Warren Buffet is called the Idle Investor. He is one of the best, rather the best investor world has ever witnessed. He knows how to make his investments yield him returns multiple times higher than his basic investments.
But today we are not here to talk about Warren Buffet. We are here to talk about Rakesh Jhunjhunwala. You can say he is the warren buffet of India. This guy has earned this title by earning Rs. 915 crores through righteous investments.
Rakesh and his wife Rekha Jhunjhunwala invested in the share of Titan (Yes, the famous watch company). And as the ideal investor warren buffet has always suggested that when you invest in equity, make patience as your best friend. Rakesh & Rekha ended up doing something just like this.
How did it begin?
Well, in 2002-03, Rakesh bought 6 crore shares of Titan at a super affordable rate of Rs. 3 per share. After that, he started trading a little bit in the shares making variable sales and purchases of share lots from his investment portfolio.
In March 2019, he held a 5.72% stake of Titan company which amounts to 5.07 crore shares, while her wife held 1.32% stake of the company which is 1.16 crore shares. To make their portfolio balanced in terms of risk and investments, Rakesh had made his investment in the shares of Titan from 5.78% to 5.72% while her wife increased her stakes from 1.30% to 1.32%.
And as they say, patience definitely reaps you a success, Titan’s shares made an all-time high of Rs. 1287.55 per share on 29th March 2019. Earlier it had made a high of Rs. 1141.05 per share. It was a rise in the share value by more than 12%. 12.83% to be precise. It is indeed a great chunk of increment in share value and is notable.
Titan’s consolidated net profit has increased by 14.4%, from Rs. 304 crore in March quarter-2018 to Rs. 348.3 crore in 2019’s March quarter. Also, the total revenue earning of the company grew from Rs. 4125 crore to Rs. 4945 crore in a year. It was a rise of 19.87%. The company bagged a total net profit of Rs. 1388.65 crore for FY 2018-19. In the year 2017-18, its profit was Rs. 1101.91 crore.
Thus, if we study the figures, Rakesh ended up gaining a profit of Rs. 743.86 crores while her wife bagged Rs. 171.05 crores of profit due to share value enhancement.
Rakesh and Rekha Jhunjhunwala held a total share portfolio of Rs. 7125 crore worth in Titan’s shares in March-2019 quarter. However, the recent hike in the shares prices has made their Titan’s portfolio value worth Rs 8040 Crore. This is how they made a profit of Rs. 915 Crore.
Bravo to these two who kept patience with their investment and set up an example for the other share marketing enthusiasts.