With whatever little experience I have had in investing, sharing a few points:
- Fintech advantages of rapid experimentation, speed and agility starts eroding once the size becomes substantial as they have to start complying to regulatory norms of the nation
- Issues of lax culture in Paytm to regulatory norms and compliance was already known (check my post on this thread in June/July’23 for more details). Continued high attrition of those who joined from banking experience compounded the matter further. All along RBI had been warning Paytm on these issues to fix the course but they failed. PayTM founder is a product person, not a banker. Simple scuttle butt on company culture would have given these insights to anyone.
- Once a company loses fancy and trust of the market, Market takes its own sweet time to again trust and reward it. Hence we see the rush to get out and the lower circuits
- There will be bounce backs in between. However a seasoned investor would look for dust to settle, see some evidence of corrective actions and walking the talk by management before committing his/her money to the company. (Unless you are in it for trading or really know what you are doing)
- Those passionately discussing about PayTM advantage or PayTM going under, would request them to remember why we are in stock market for first place – Our goal should not be to be proven “right” or “wrong”, but to make money
As Rakesh ji use to say – Stock market investing is not an act of smartness but journey of wisdom.
May the divine grant all of us enough wisdom to protect and grow our investment capital.
Cheers!
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