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Zerodha CEO Nithin Kamath, known for his educational commentary on stock markets and trading on social media platforms, on Saturday expressed fears about the sharp drop in the stock prices of new-age tech companies listed in the world. According to Kamath, only a small percentage of tech companies have been able to recoup the losses.
In a series of tweets, the Zerodha chief advised new-age tech companies to “prioritize lower long-term volatility over maximum short-term gain,” while making a growth forecast.
Nithin Kamath said that core team net worth in most new age companies is tied to ESOPs, and added that “The more a company tries to push up prices in the short term, the greater the risk of large falls and long-term volatility are high.
Citing a witty reference to Bollywood legend Amitabh Bachchan’s dialogue from the film Sarkar, ” Nazdiki fayda dekhne se pehle, porte ka nuksaan sochna chahiye (You have to think about a long-term loss before you cherish a short-term gain), “Kamath said,” When companies are primarily valued by what they’re projecting, counterintuitively, it can be a good idea. idea of talking downwards rather than raising the price. Lower stock price volatility may also be something companies should be aiming for, which is also good for long-term investors.
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