Rakesh Jhunjhunwala’s Latest Portfolio 2024: Investment Insights & Learnings

Introduction

Welcome to the thrilling realm of the stock market, where fortunes are crafted and legends are born. In this dynamic arena, the name that echoes with resounding success is none other than Rakesh Jhunjhunwala. He’s not just a maverick; he’s the undisputed titan of the Indian stock market. To some, Rakesh is the Pied Piper of stock markets, to others, he’s the proverbial Big Bull, and many liken him to India’s Warren Buffett. Recently, Rakesh Jhunjhunwala’s portfolio has not only captured seasoned investors’ attention but also inspired countless aspiring traders.

While the Big Bull of Dalal Street may be gone, his legacy, wisdom, and stock market triumphs continue to inspire. If you’re eager to explore Rakesh Jhunjhunwala’s latest portfolio and the stocks he currently holds, your search ends here. In 2023, his portfolio boasts a diverse array of stocks spanning various sectors. Let’s unveil the secrets behind Rakesh Jhunjhunwala’s stock portfolio and its remarkable success.

Table of Contents

• Who Was Rakesh Jhunjhunwala?
• Rakesh Jhunjhunwala and Associates’ Portfolio 2022
• Top Holdings in Rakesh Jhunjhunwala’s Portfolio 2022
• Rakesh Jhunjhunwala’s Penny Stocks List
• Rakesh Jhunjhunwala’s Portfolio List: Sector Split Overview
• A Glimpse of the Top Sectors
• Stocks Traded by Rakesh Jhunjhunwala in 2022
• New Additions to Rakesh Jhunjhunwala’s Portfolio in FY22
• Stocks Downsized in Rakesh Jhunjhunwala’s Portfolio in FY22
• Investment Strategy of Rakesh Jhunjhunwala: The Art of Stock Picking
• Key Takeaways from Rakesh Jhunjhunwala
• Conclusion: Rakesh Jhunjhunwala’s Winning Formula

Who Was Rakesh Jhunjhunwala?

Rakesh Jhunjhunwala, often hailed as the “Big Bull” of the Indian stock markets, was a legendary figure in the financial world. Born in Mumbai, India, Jhunjhunwala embarked on his career as a Chartered Accountant before venturing into the world of investing. His unique investment philosophy, marked by astute research, unwavering patience, and a long-term perspective, propelled him to great heights in the financial industry.

Rakesh Jhunjhunwala’s portfolio is a captivating blend of stocks, ranging from blue-chip giants to diverse sectors of the Indian economy. His portfolio even includes small-cap stocks, such as Prozone Intu Properties Ltd., which, as of August 2022, had a market capitalization of just ₹319 crore.

As one delves into the intricacies of Rakesh Jhunjhunwala’s stock portfolio, it becomes clear that his investment philosophy extends beyond mere stock selection. He strategically positions himself in promising sectors, diligently monitoring market trends and valuations. He firmly believed in the adage, ‘Anticipate trends and benefit from them. Traders should swim against the tide.’

Owing to his enduring passion for the stock market and his knack for calculated risks, his portfolio’s net worth stood at ₹31,833 crore as of August 2022. He also invested in the name of his wife, Rekha Jhunjhunwala, whose portfolio was valued at over ₹29,534.6 crore as of March 2023. Additionally, he established a stock trading firm named RARE Enterprises, a fusion of the initials of Rakesh Jhunjhunwala and his wife.

Now, let’s delve deeper into Rakesh Jhunjhunwala’s stock list and gain insights into the philosophy behind his portfolio construction.

Rakesh Jhunjhunwala and Associates’ Portfolio 2022

With a focus on sectors like banking, financial services, consumer goods, and technology, Rakesh Jhunjhunwala’s portfolio in 2022, along with his team, showcased their prowess in identifying promising companies poised for growth and profitability.

Here’s a list of 32 stocks traded on exchanges, valued at approximately ₹32,000 crore as of August:

Top Holdings in Rakesh Jhunjhunwala’s Portfolio 2022

From financial powerhouses to promising tech firms, Rakesh Jhunjhunwala’s stock holdings underscore his shrewd investment decisions and reveal the stocks that have earned his trust in the year.

Here’s a list of the top 5 stocks that comprised Rakesh Jhunjhunwala’s portfolio in 2022:

Apart from these top 5 holdings, there is a selection of penny stocks, which are low-priced stocks, covered in the following section.

Rakesh Jhunjhunwala’s Penny Stocks List

Here, we’ve listed Rakesh Jhunjhunwala’s penny stocks that have the potential to yield high returns. However, it’s imperative for investors to conduct their research before considering these stocks.

Rakesh Jhunjhunwala’s Portfolio List: Sector Split Overview

Rakesh Jhunjhunwala is one of India’s most successful investors, known for his knack for selecting stocks that outperform the market. As of June 2023, his portfolio boasts a value exceeding Rs 31,833 crore.

Jhunjhunwala’s portfolio is well-diversified across 23 sectors, but he has particularly bullish inclinations towards some sectors:

As per Rakesh Jhunjhunwala’s portfolio list, the following sectors piqued his interest:

Jewellery (34%): Jhunjhunwala exhibits bullishness in the jewellery sector, with a substantial 34% allocation. Titan Company Ltd., a market leader in the jewellery segment, constitutes a major part of this allocation.

Financials (4.64%): The financial sector also holds his attention, with a 4.64% allocation, encompassing banks, credit rating agencies, and financial services stocks. The sector is poised for growth due to the expanding economy and rising demand for financial services.

Pharmaceuticals (10%): Jhunjhunwala demonstrates confidence in the pharmaceutical sector, with a 10% allocation. His investments include companies like Sun Pharmaceutical Industries Ltd., Dr. Reddy’s Laboratories Ltd., and Lupin Ltd.

Consumer Durables (8%): Consumer durables secure an 8% allocation in his portfolio, featuring stocks such as Titan Company Ltd., Whirlpool of India Ltd., and Bajaj Electricals Ltd.

Media (6%): Jhunjhunwala has a 6% allocation to the media sector, with holdings in companies like Zee Entertainment Enterprises Ltd., Star India Ltd., and TV18 Broadcast Ltd.

Others (37.36%): This category represents diverse sectors, including Agro Tech Foods Ltd., Crisil Ltd., and Jubilant Pharmova Ltd., making up the rest of his portfolio.

Stocks Traded by Rakesh Jhunjhunwala in 2022

“Trading always keeps you on your feet; it keeps you alert. That’s one of the reasons why I like to trade.” – Rakesh Jhunjhunwala

Rakesh Jhunjhunwala’s portfolio has consistently outperformed the market over the long term, boasting a compounded annual return of over 30% in the last two decades. This remarkable achievement stands as a testament to his investment acumen.

Let’s first examine Rakesh Jhunjhunwala’s stock portfolio, focusing on stocks he increased his holdings in during the March 2022 quarter, and then we’ll delve into the stocks he reduced his holdings in.

Stocks Added to Rakesh Jhunjhunwala’s Stocks List in FY22

Here are three stocks that were added to Rakesh Jhunjhunwala’s portfolio in 2022:

1. Metro Brands: In the last quarter of 2022, Rakesh Jhunjhunwala purchased 1.9 million shares of Metro Brands, a footwear retailer. He now holds a 1.93% stake in the company.
2. Nazara Technologies: In the last quarter of 2022, Jhunjhunwala acquired 1.3 million shares of Nazara Technologies, a gaming and sports media company. His stake in the company now stands at 1.43%.
3. Agro Tech Foods: In the last quarter of 2022, Jhunjhunwala added 1.1 million shares of Agro Tech Foods, a food processing company, to his portfolio. He now holds a 1.24% stake in the company.

Stocks Reduced in Rakesh Jhunjhunwala’s Stocks List in FY22

Here’s a list of stocks that were reduced in Rakesh Jhunjhunwala’s portfolio in 2022:

1. Star Health and Allied Insurance Company Ltd: In March 2022, Jhunjhunwala sold 2 lakh shares of Star Health and Allied Insurance Company Ltd., reducing his stake in the company to 1.8%. Star Health is a private health insurance company facing challenges due to rising healthcare costs.
2. Metro Brands Ltd: In March 2022, Jhunjhunwala sold 1 lakh shares of Metro Brands Ltd., decreasing his stake in the company to 1.6%. Metro Brands, a footwear retailer, has encountered challenges due to a slowdown in the retail sector.

Investment Strategy of Rakesh Jhunjhunwala: Stock Picking Philosophy

Up to this point, we’ve covered the fundamentals. If you’re here to understand how Jhunjhunwala made cautious yet rewarding investment decisions and became a billionaire, this section is for you. As we analyze Rakesh Jhunjhunwala’s holdings, several key lessons emerge:

1. Quality of Management: Jhunjhunwala firmly believes that the most crucial aspect of investing is the quality of the management team. Take Titan Company Ltd., his favored stock. He invested in the company because of its robust management, sound business model, and attractive valuation.
2. Timing of Selling: Jhunjhunwala contends that while there may not be an exact buying point for stocks, a correct moment for selling does exist. According to him, the optimal time to sell a stock is when its price-to-earnings ratio (P/E ratio) reaches an unsustainable level. This strategy proved profitable for him during the Harshad Mehta Scam in the 1990s when he correctly assessed that market valuations were not sustainable and took a short position.
3. Diversification: Jhunjhunwala’s portfolio spans multiple sectors, from jewelry and pharmaceuticals to automobiles and financial services. Diversification helps reduce overall risk while allowing for significant returns over time.
4. Cash Reserves: Similar to Warren Buffet, Jhunjhunwala values cash as an asset on a balance sheet. He looks for companies with substantial cash reserves, which is one reason for his interest in CRISIL Ltd.

Learnings from Rakesh Jhunjhunwala

Here are some key takeaways from Rakesh Jhunjhunwala’s portfolio in 2022:

1. Conduct In-Depth Research: Avoid chasing hot tips. Thoroughly research companies before investing. Examine their financials, management teams, and industry trends to make informed decisions.
2. Long-Term Perspective: Jhunjhunwala is a long-term investor who believes in giving companies time to grow and stock prices time to appreciate. He’s willing to hold stocks for years, even in a volatile market.
3. Risk-Taking: Jhunjhunwala isn’t afraid to take risks. He invests in companies in emerging industries or facing challenges, believing they have the potential for rapid growth and high returns.
4. Patience: He understands that it takes time for companies to grow and for stock prices to rise. He’s willing to wait for the right investment opportunity.
5. Independent Thinking: Jhunjhunwala doesn’t follow the crowd. He invests in companies he believes in, even if they’re not popular. He emphasizes the importance of conducting your research and making your own investment decisions.

To Wrap It Up…

Rakesh Jhunjhunwala invests in companies he believes in, regardless of their popularity. He also diversifies across various sectors to reduce overall risk while achieving substantial returns over time.

Don’t hesitate to embark on your investing journey and discover the investment opportunities that align with your financial goals and risk tolerance.