Last year, Radhakishan Damani made the entire investing fraternity proud by storming into the Forbes Billionaires’ Club and rubbing shoulders with the elite members of the Club.
His net worth was pegged by Forbes at $1.1 Billion (Rs. 6100 crore).
It is notable that Radhakishan Damani was only the second representative of the investors’ fraternity from India in the Billionaires’ Club. The first is, of course, our own redoubtable Rakesh Jhunjhunwala, the Badshah of Dalal Street.
However, in a shocking turn of events, Radhakishan Damani has now lost that coveted position. His name no longer appears in the 2016 list of Forbes Billionaires’ list.
The reason for this sorry state of affairs is the accursed Bear market which has plagued the bourses since Mid-2015. Most of Radhakishan Damani’s favourite stocks, such as Transport Corporation, Gati, VST, India Cements have faced the brunt of the Bear market and have lost huge percentages of their value.
Even Rakesh Jhunjhunwala has been downgraded by Forbes. In 2015, the Badshah stood tall at serial number 894 and commanded a net worth of $2.2 Billion (Rs. 12,380 crore).
Presently, the Badshah stands at serial number 1011 and his net worth is down to $1.8 Billion (Rs. 10,129 crore).
This means that Rakesh Jhunjhunwala has suffered a notional loss of Rs. 2,250 crore (18%) as at the end of December 2015.
What is heartening is that the loss suffered by the stalwarts is not crippling thanks to the top quality of stocks that the duo has invested in. In fact, if Rakesh Jhunjhunwala has suffered a loss of 18% in his portfolio, it means that he has out-performed the Nifty, which has lost at least 20%. Also, given that the bulk of the stocks in the portfolio are powerhouse stocks, it is only a question of time before the duo regains its days of glory and makes the investing fraternity in India proud again!