Title: The best investor you've never heard of Subtitle: Rakesh Jhunjhunwala Publication: Compounding Quality (Substack, paid post) Author: Compounding Quality (byline "COMPOUNDING QUALITY"; signed "Pieter (Compounding Quality)") Date: 2026-09-15 (byline SEP 15, 2026) URL: https://www.compoundingquality.net/p/the-best-investor-youve-never-heard-45a Audience: only_paid Note: text captured verbatim from the paid post via a logged-in browser session; the public API body truncates at the paywall. Written post - no timestamps. Charts and slides are published as images; the ones carrying figures are transcribed inline as [Chart image - ...] / [Table image - ...] blocks where they appear. Photos and the Buffett quote card are noted in one line. Typos kept as published ("succesful", "When and when"). The best investor you've never heard of Rakesh Jhunjhunwala Have you ever heard about Rakesh Jhunjhunwala? He was a legendary Indian investor. His track record? A 62% (!) CAGR over 37 years. Let's see what you can learn from him. [Image - photo of Rakesh Jhunjhunwala; not transcribed.] Who was Rakesh Jhunjhunwala? Rakesh Jhunjhunwala was an iconic Indian billionaire investor, trader, and chartered accountant. He was known as "The Big Bull of India". Some people even called him "India's Warren Buffett". Why? He was very succesful in the Indian stock market. He used a simple, yet powerful, investment philosophy. Rakesh studied at Sydenham College and became a Chartered Accountant in 1985. That same year, he started investing with just ₹5,000 (around $100 at the time). He started trading derivatives and quickly moved into long-term equity investing. One of his first big wins? Tata Tea. He bought shares at ₹43… and sold them at ₹500 just five years later. Over the years, Rakesh became a billionaire. At the time of his passing in 2022, his net worth equaled $5.8 billion. Let's build a stock screener together which helps you to find good companies. Investment Philosophy Rakesh Jhunjhunwala used an unusual investment philosophy. He mixed value, growth, and a strong belief in India's future. His 3 most famous principles? India as a clear growth story Combine value and growth Be patient 1. India as a clear growth story Rakesh Jhunjhunwala was a big believer in India. He always said the country had huge potential. That's why he kept buying companies that benefited from population growth, rising consumer spending, and improving infrastructure. And once he picked a stock, he held it for years. Sometimes, even decades. He had one famous quote: "Never short India." - Rakesh Jhunjhunwala What did he mean? He knew the country would be worth much more in the future than it is today. India's economy is expected to grow by more than 6% per year over the next few years. [Chart image - "India's GDP on an accelerator mode: GDP is now doubling in a shorter time period" (Confederation of Indian Industry; source MOSPI & CII Research), with a photo of a CII official. GDP in US$ trillion by fiscal year: 1.7 (2010-11) -> 3.4 (2022-23) "Indian economy took over a decade to double its GDP"; 5.0 (2026-27), 7.0 (2029-30), 8.1 (2030-31) "The next doubling of GDP will take place in a shorter span of time, in 7 years". Caption: "The growth rate is poised to touch 8% during the current year, marking the 4th consecutive year of above 7%+ growth."] Source: Indian Retailer 2. Combine value and growth Rakesh Jhunjhunwala was a value investor at heart. He loved buying companies below their true value. But here's the twist. He didn't mind paying a fair price, or even a premium, for a wonderful company with excellent management. He looked for companies with scalable models. Companies that could grow big and crush their competition. It's fair to say Rakesh was actually a Quality Investor. [Image - quote card with photo: "Growth and value investing are joined at the hip." - Warren Buffett.] 3. Be Patient Rakesh often talked about patience. He told investors to let their money grow. He believed real wealth doesn't come from trading every day. It comes from owning great businesses and letting them compound over time. Still, when a big chance appeared, he believed you must act fast. Opportunities come infrequently on the stock market. And when they do, you should swing heavily. [Chart image - "India retail market size ($Bn)" (Euromonitor, BCG analysis; calendar years): 2010 250; 2019 650-700 (+12% CAGR); 2020 610-630 (-7%); 2021 670-690 (+10%); 2023 820-840 (+9%, "On-track growth over last 2 years"); 2033F 2000 (+9-10%, projected post-COVID).] Source: BCG Performance Rakesh turned a small amount of capital into a multi-billion-dollar fortune: He started with just $100 in 1985. By the time he passed away in 2022, his net worth had grown to $5.8 billion Many of his long-term investments, including Titan Company, became legendary multi-baggers, rising by hundreds or even thousands of percent. Over a 37-year investing career, he compounded his wealth at an estimated 65% per year. [Chart image - "Rakesh Jhunjhunuwala's Net Worth 2023" (Tickertape): roughly ₹9,000 crores (Dec 2015) -> ₹8,400 cr (Mar 2016) -> ~₹14,300 cr (Dec 2017) -> ~₹8,400 cr trough (Mar 2020) -> ~₹34,800 cr (Dec 2021) -> ~₹25,400 cr (Jun 2022) -> ~₹38,700 cr (Jun-Jul 2023). Readings approximate, from the plotted line; the series runs past his August 2022 death.] Portfolio Let's give you 3 examples of companies that Rakesh used to own. 3. Tata Motors How does the company make money? Tata Motors is a big car company that makes many kinds of vehicles: cars, vans, buses, trucks, and army vehicles. The company also owns the famous Jaguar Land Rover brand. Why Rakesh liked Tata Motors? Rakesh believed in the long-term growth of India's car industry and in the comeback of Tata Motors. Tata Motors is a company that benefits from a growing Indian economy. In 2020, he bought Tata Motors shares during the COVID-19 crash. As the stock rose over 5x, he made over $71.6 million. [Table image - Tata Motors investor presentation, "Q4: Revenue ₹119.5K Cr, EBITDA ₹16.7K Cr, Auto FCF ₹19.4K Cr - Robust performance continues - Highest ever full year revenues and PBT(bei)", FY25 consolidated IndAS, ₹ K Cr: Q1 FY25 Q2 FY25 Q3 FY25 | Q4 FY25 Q4 FY24 Y-o-Y | FY25 FY24 Y-o-Y Global wholesales (K) 330.3 303.8 341.9 | 366.0 377.1 (2.9)% | 1,342.0 1,380.3 (2.8)% Revenue 107.1 100.5 112.6 | 119.5 119.0 0.4% | 439.7 434.0 1.3% EBITDA (%) 14.0% 11.0% 13.2% | 14.0% 14.6% (60 bps) | 13.1% 14.1% (100 bps) EBIT (%) 8.0% 5.1% 8.4% | 9.6% 8.8% 80 bps | 7.9% 8.0% (10 bps) PBT (bei) 8.8 5.8 7.6 | 12.1 9.5 2.6 | 34.3 29.4 4.9 FCF (Auto) 1.2 (2.9) 4.7 | 19.4 14.1 5.3 | 22.4 26.9 (4.5) Notes: highest ever revenues in FY25; strong sequential recovery in Q4; revenue also aided by INR depreciation vs GBP. Interest savings, better CV profitability, lower D&A at JLR, partially offset by lower volumes and lower operating leverage; highest ever annual PBT (bei) at ₹34.3K Cr. Auto FCF ₹19.4K Cr in Q4, ₹22.4K Cr full year; ₹49.3K Cr over last 2 years; "Deleveraging commitment fulfilled."] Investor Presentation 2. Star Health and Allied Insurance How does the company make money? Star Health is one of the biggest health insurance companies in India. It sells health insurance plans for people, families, and companies. Why Rakesh liked Star Health? Rakesh bought a big piece of Star Health & Allied Insurance before the company went public. He believed India's health insurance market had huge growth potential. The reasons? Healthcare costs were rising More people were learning about insurance The middle class was growing and earning more He invested $114 million. When and when the company went public, his shares were worth $859 million. That's a +650% return. [Chart image - Fiscal.ai, Star Health "Revenue", Total Revenues (Annual) (Millions; currency not labelled, ₹ by magnitude): Mar '16 15,951; Mar '17 20,121; Mar '18 28,875; Mar '19 37,653; Mar '20 49,768; Mar '21 50,506; Mar '22 106,034; Mar '23 121,000; Mar '24 140,242; Mar '25 161,122. Total change 910.12%, CAGR 29.3%.] Source: Fiscal ai 1. Titan Company Ltd. How does the company make money? Titan Company is the biggest and most trusted shop in India for watches, jewelry, and glasses. The company owns famous brands like Titan, Tanishq (jewelry), and Fastrack. Why Rakesh liked Titan? Rakesh's most famous investment was Titan. This is a company he has held for more than 20 years. He first bought Titan shares in the early 2000s for about ₹3 ($0.034) each. For Rakesh, it became a 700-bagger (!). You only need one investment like this to be tremendously successful. Titan is a fantastic business. It has a powerful brand, leading positions in its markets, and outstanding management backed by the Tata Group. As more Indians spend on lifestyle and fashion, Titan is well positioned to benefit. [Table image - Titan Company investor presentation p.9, "Titan Brands - Size of Business" (FY25 Gross UCP bands, not to scale): Jewellery - Tanishq (~₹50,000 cr band), CaratLane (₹1,000-5,000 cr), Mia by Tanishq (₹500-1,000 cr), Zoya (₹100-500 cr); Watches & Wearables - Titan (₹1,000-5,000 cr), Fastrack, Fastrack Smart, Sonata, Raga (₹500-1,000 cr), Edge, Nebula, Titan Smart (₹100-500 cr), Titan Clocks, Xylys, Zoop (<₹100 cr); EyeCare - Titan Eye+ (₹1,000-5,000 cr band); Indian Dress Wear - Taneira (₹100-500 cr); Fragrances - Skinn (₹100-500 cr), Fastrack Perfumes (<₹100 cr); Fashion Accessories - Irth, Fastrack bags (<₹100 cr).] Investor Presentation Conclusion That's it for today. Rakesh based his investment philosophy on 3 simple rules: India as a clear growth story Combine value and growth Be patient This allowed him to compound his money by 65% (!) per year. His most famous investments are Tata Motors, Star Health and Titan. See you on Thursday! Everything in life compounds Pieter (Compounding Quality) Book Order your copy of The Art of Quality Investing here Used sources Interactive Brokers: Portfolio data and executing all transactions Fiscal: Financial data Disclaimer As a reader of Compounding Quality, you agree with our disclaimer.