We all are wise in the hindsight. AIF issue happened with every bank/ nbfc, even HDFC bank had to take an impact for it. Does that mean that HDFC bank is not worth investing? HDFC bank was stopped from issuing credit cards for more than a year, does that mean HDFC bank management was stealing money from credit cards?
I am surprised how fast the people are willing to degrade a management to be dishonest, especially for mid/small cap companies but see similar issues with bigger companies as buying opportunity. People are showing IIFL securities related issues to say that IIFL Finance management is dishonest. By that logic, no one should have bought Bajaj Finance from 2010 until 2023 since Bajaj auto was not doing anything great during that time period.
I am not saying that current problem is a small issue and management should not be questioned about it. But to call the management as Thief/ Dishonest and its investors as stupid is not the right approach. I am personally invested in the company and have been tracking it for several years. I still don’t think that I could find any major red flags in the business until last evening’s notice from RBI. Please look at the FII/ DII holdings, doubled over last two years, even they couldn’t find any issues-
Sometimes shit happens, you have to just accept it and move on. We all should learn from this and improve on our processes going forward.
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