Rakesh JhunjhunwalaSeasoned investor Rakesh Jhunjhunwala, also known as the ‘Big Bull’ of the Indian stock markets, has played down investing in new-age stocks such as Zomato and Tesla.
Zomato’s highly-successful initial public offering (IPO) has set the stage for a host of new internet companies such as MobiKwik and Paytm that are preparing for their upcoming debut in the Indian share market.
However, Jhunjhunwala played down the hype surrounding these companies and stressed upon factors such as business model and sustainability to be more important than their respective valuations.
“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 was quoted in a report by the Mint.
He added, “Let Zomato market cap becomes Rs 99,000 crore and Tesla market cap soar up to $600 billion or $6 trillion, I am not going to buy these stocks.”
Jhunjhunwala also mentioned that money is equivalent to oxygen for entrepreneurs but cautioned that capital cannot be more important that the business model for them.
He cited positive examples of the likes of Walmart and Zara and expressed that he tends to like a cash flow business model instead of focusing on a firm’s valuation as such.
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