Rakesh Jhunjhunwala, often dubbed as India's Warren Buffett, demonstrated his investment acumen in a striking manner following the 1989 budget. The budget, presented by Madhu Dhanwate in the VP Singh government, proved to be a turning point for the ace investor.

In 1989, a wave of pessimism swept through the market as people anticipated a budget heavily focused on social needs, given Dhanwate's socialist leanings. However, Jhunjhunwala held a contrarian view. He believed that VP Singh, hailing from a business-oriented background, would not introduce a budget detrimental to the business community.

Acting on his conviction, Jhunjhunwala invested heavily in stocks when most investors were hesitant. His foresight proved correct when the budget was revealed to be surprisingly supportive of traders and businessmen. This unexpected outcome triggered a massive overnight surge in the stock market, significantly boosting Jhunjhunwala's portfolio.

Before the budget, Jhunjhunwala's net worth was around ₹2 crore. But, after the budget was announced, his net worth saw a dramatic increase. According to Jhunjhunwala, his net worth catapulted from ₹3 crore at 6 pm to ₹20 crore by 2 am. This overnight transformation underscored his deep understanding of market dynamics and his ability to take calculated risks.

This event wasn't an isolated incident, but rather a part of Jhunjhunwala's larger success story in the stock market. Starting with just ₹5,000 in 1985, he built a portfolio that reached ₹11,000 crores by 2022. His early success included a ₹5 lakh profit in 1986 from Tata Tea shares. By 1989, his net worth had already grown to ₹2 crores, thanks to investments in companies like Sesa Goa.

Jhunjhunwala's investment philosophy revolved around thorough research, a keen understanding of company fundamentals, and a willingness to go against the crowd. He met with company management, analyzed balance sheets, and held his investments for the long term. This approach is exemplified by his investment in Titan, where he held onto the stock through market fluctuations, eventually generating substantial returns.

His success in 1989, turning ₹1 crore into ₹20 crore overnight, wasn't just about luck. It reflected his ability to anticipate market trends and act decisively. This event solidified his reputation as a savvy investor and set the stage for his future accomplishments in the Indian stock market. Jhunjhunwala's life demonstrates that with calculated risk-taking, in-depth research and a contrarian mindset, significant wealth creation is possible in the stock market.

Even after his passing in August 2022, Jhunjhunwala's legacy continues to inspire investors. His principles of value investing and long-term wealth creation remain relevant in today's market.