Jhunjhunwala won’t invest in Zomato: And there is a reason
The phenomenal performance of Zomato on the stock exchanges has failed to impress ace investor Rakesh Jhunjhunwala. In a webinar hosted by Equirus, India’s Big Bull wished Zomato well but stated that he would not invest in its stock.
Explaining his move, the ace investor said: "What I buy is very important, at what price I buy is the most important. Let Zomato be worth Rs 99,000 crore and Tesla be $600 billion or $6 trillion. I am not going to buy these stocks."
“There is no need to attend each and every party in the town. What I buy is important and at what price I make that buy is most important,” the ace investor said.
Young entrepreneurs, according to Jhunjhunwala, have a great mindset. He described the young entrepreneurs’ speed and dedication as “unbelievable.” Opportunity, frugality, corporate governance, technology, and the flexibility to evolve, he argued, are what a company requires. Jhunjhunwala stated, “The race is not going to conclude tomorrow.”
Rakesh Jhunjhunwala went on to add that for entrepreneur, money is like 'Oxygen' but 'capital is not as important as the business model is.' Asking to learn from Zara and Walmart, Jhunjhunwala said, "I like cash flow business model rather focusing on valuation." He said that valuations can’t be more important than the business model and its sustainability.
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