Remembering Rakesh Jhunjhunwala: Why the Big Bull was a bear when it came to startups, cryptocurrencies
Ace investor Rakesh Jhunjhunwala, who died aged 62 in Mumbai on August 14, was often called India’s Warren Buffet for the similarities in investing patterns he shared with the veteran American investor. And the similarities, or rather caution, extended to cryptocurrencies as well as cash-guzzling new-age startups.
Jhunjhunwala had a net worth of over $5.5 billion. As India mourns the passing of the legend of Dalal Street who had immense faith in India’s growth story, here’s a look at why the Big Bull stayed away from cryptocurrencies and new-age startups:
Importance of positive cash flow
Jhunjhunwala echoed Buffet’s comments on the importance of positive cash flows for companies in many media interactions. In an interview to CNBC-TV18 earlier this year, Jhunjhunwala said that prices across the globe were a “slave of cash flow and earnings”.
“Without so much focus on valuations, a company needs opportunity, frugality, corporate governance, technology, the ability to change and if the race is on, it is the tortoise that wins, not the hare,” Jhunjhunwala said in another media interaction.
Also read: Rakesh Jhunjhunwala's greatest investment hits, and odd misses
-family: 'Georgia','serif'; color: #1a1a1a;">I don’t want to go to the startup party as the hangover is only for two days.
Read more on moneycontrol.com
