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Voda Idea : What desperation looks like
Author: Raoji
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Linkfest: 27 July, 2021
Some stuff I am reading today morning:
UK High Court declares Vijay Mallya bankrupt (BT)
OFS in Hudco (BS)
Reliance’s big retail push (Rediff)
Is Dainik Bhaskar clean? (Hawk Eye)
Interview of N Srinivasan (MC)
How is India doing now on the Covid front? (CNBC)
The story of SaaS giant Atlassian (Jesse Pujji)
Untold truths about forward valuations (Lance Roberts)
Building an investing career based on writing (TRB)
Randomness Rules (Better Letter)
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Lazy Argument
There are good arguments to be made against investing in Zomato at is proposed offering price, but one of the emptiest, and laziest, is that it is losing money right now.
I know that for some value investors, trained to believe that anything that trades at more than 10 or 15 times earnings or at well above book value, this argument suffices, but given how badly this has served them over the last two decades, they should revisit the argument.
The biggest reason that Zomato is losing money is because it is a young company that is trying to take advantage of a market with immense growth potential, not because it cannot make money. In fact, if Zomato cut back on customer acquisitions and platform investments, my guess is that it could show an accounting profit, but if it did so, it would be worth a fraction of what it is today.
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A Tale of Two Mahindras
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Linkfest: 26 July,2021
Some stuff I am reading today morning:
India @ 100 could be as rich as America & China ( Mukesh Ambani)
SC reject telcos plea on AGR recalculation (BS)
Rakesh Jhunjhunwala on Zomato valuation (Fortune)
Valuation : Zomato (Aswath Damodaran)
On REITS & InvITs ( V Balasubramaniam )
Ever Grande: The coming disaster ( Marc Rubinstein)
Why is China smashing its Tech industry ? ( Noahpinion )
How to build wealth (Warren Buffett)
Why passive investing is better than ever (Charles Ellis)
Reality Check (Anand Sridharan)