How Rakesh Jhunjhunwala, India's Warren Buffett, turned Rs 1 crore into Rs 20 crore overnight after the 1989 budget

After Union Finance Minister Nirmala Sitharaman presented her record ninth Budget 2026-27 on Sunday, an old video of India’s Big Bull Rakesh Jhunjhunwala re-surfaced online in which he was heard talking about a famous moment from the 1989 Union Budget presented by then Finance Minister Madhu Dhanwate in the then V. P. Singh government. In the video, 'India's Warren Buffett' can be heard saying that in 1989, on Budget Day, he had Rs 1 crore and the next day he had Rs 20 crores. Madhu Dhanwate's budget in 1989, Finance minister in V.P Singh's government, became turning point in Rakesh Jhunjhunwala's life. According to reports, Rakesh Jhunjhunwala's portfolio was Rs 2 crore during the budget, which increased to Rs 40-50 crores four-five months after the budget was presented.

"And then came Madhu Dhanwate's Budget. I remember Radhakrishna had taken me to meet Nimesh bhai. People were so bearish but I was sure that you know..one thing that VP Singh will not give a budget that will hurt the business community. He was the man who first reduced rates of taxes, who abolished estate duty. Although he was a Thakur, he was a businessman. So I staked my life in that Budget. And I was worth Rs 1-Rs 1.5 crores and when the day of the budget, I was worth Rs 20 crores the next day. I stake my life. Right. And that's how I made the real initial money," Rakesh Jhunjhunwala recalled.

“In 1989, on Budget day, I had 1 crore and the next day I had 20 Crores.” “For Madhu Dhanwate’s Budget, people were so bearish. I knew VP Singh government won’t hurt the business community. He had reduced Tax rates and abolished estate tax," a social media post read.




It is pertinent to note that in 1989, the Indian stock market sentiment was extremely bearish ahead of the Budget. Investors feared that the new government might introduce anti-business, socialist-leaning measures that could hurt private enterprise and capital markets.

Contrary to market fears, Madhu Dhanwate's Budget turned out to be pro-business and market-friendly as income tax rates were reduced, leaving more money in the hands of individuals and businesses. Estate duty (inheritance tax) was abolished, which was seen as a major relief for wealthy families and business owners.

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Rakesh Jhunjhunwala gifted his wife after making crores

Rakesh Jhunjhunwala once shared a memorable anecdote from 1989, when a massive market gain led to an unexpectedly simple first thought — buying an air conditioner for his wife, something she had long wished for since their marriage.

Speaking at a seminar, the ace investor recalled how he turned an investment of ₹3 crore into nearly ₹20 crore around the time of the 1989 Union Budget. At a time when everyday comforts were still considered luxuries and he often travelled by bus, his wife’s desire for an AC had stayed with him.

He recounted that after investing his entire Rs 3 crore in the market ahead of the Budget, his net worth surged dramatically within hours as stocks rallied. Rushing home to share the news, he told his wife, Rekha, with relief and excitement, “We can finally afford the AC.” Rakesh Jhunjhunwala, often known as India's Warren Buffett, imparted valuable investing lessons. His success stems from astute stock picks and long-term vision.

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Over the years, Jhunjhunwala's knack for identifying winning stocks earned him the moniker of an investor with a "Midas touch." He made substantial investments in companies like Titan, CRISIL, Sesa Goa, Aurobindo Pharma, and NCC, many of which turned into multibaggers. In 2003 Rakesh Jhunjhunwala and his wife Rekha founded a private equity investment and asset management firm, Rare Enterprises. He also invested in a new airline company Akasa Air ltd, his first venture in this domain.