Recently,Warren BuffettsubsidiaryBerkshire HathawayLiquidated India's largest digital payment companypaytm, with 1$6.4 billion sold for the company 25% shareholding. This clearance letWarren BuffettLost a lot of money, according toWeighted average** Calculations,Warren BuffettThe loss per share was 31%, or 46% after taking into account exchange rates. This time,Warren BuffettThe reason for the defeat of India is that he underestimatedpaytmInBusinessThe shortcomings in the application field are facing the strong pressure of domestic and foreign competitorspaytmThe prospects have become slim. This also provides us with an important lesson, the same product can have very different results in different markets.
paytmofStart a businessThe history can be traced back to 2009, when they saw a huge business opportunity hidden under India's huge population and decided to go inInternetPayments Field. However, due to the huge gap between the rich and the poor in India, many people do not even have an internet connection at home, which givespaytmhas brought many difficulties. Until 2015, Prime Minister of IndiaModiLaunched the "Digital India" strategy, IndiaInternethas developed rapidly, and the cost of people accessing the Internet has been greatly reducedpaytmThe development provides a good environment. In addition,ModiIt was also implemented".Remonetation Order", so thatpaytmIt quickly became the preferred payment tool for people in India, and the number of users increased several times in just 3 months.
Expansion: The period from 2009 to 2015paytmThe development did not go well. Due to the relatively lagging development of the Internet in India, many people are not aware of itInternetEase of making payments. UntilModiA series of supports have been launchedInternetdevelopment policy,paytmOnly then did he gradually embark on the road of development. From this process, it can be seen that the support policy of the first is forStart a businessThe development of the company plays a vital role.
AlthoughpaytmIt is known as "Indian Alipay", but its development path is very different from Alipay. The premise of Alipay's rapid rise is the strong existence of the firstpaytmIt is only with the strong support of ** that it has been developed. However,paytmInBusinessThere are shortcomings in the application field, lack of basic payment scenarios, and cannot be compared with Google Pay, Apple Pay, etcAmazonpayments and other international giants to compete. Unlike Alipay, which follows ** and expands into the field of e-commerce,paytmofBusinessThe logic seems to be a bit confusing and fails to provide users with enough application scenarios.
Extensions:paytmIn the face of Google Pay, Apple Pay,AmazonIt is difficult for international giants such as payment to have a competitive advantage, because they have a huge advantage in app stores, e-commerce platforms, etc. ForpaytmIt is not easy to achieve a turnaround, and the current development dilemma may not be able to be effectively broken through, which is why Ali andWarren BuffettIt's all cleared.
Warren BuffettIn the clearancepaytmThe decision is very wise. paytmAfter going public in 2021, the stock price has been **, and the valuation has shrunk significantly. IfWarren BuffettIf you don't clear the warehouse in time, it is unknown whether it will be able to do so in the future. Therefore,Warren BuffettIt was decided to withdraw from this unfavored market in time to avoid further losses.
Extensions:Warren BuffettAs a stock god, his liquidation action will inevitably attract the attention of the market. Warren BuffettofInvestmentsWith a focus on long-term value and stable cash flow, he will be decisive in liquidating companies whose future is uncertain. This clearancepaytmIt's becauseWarren Buffettunderestimated itBusinessThe problem of logic, i.e. the dilemma of the lack of sufficient payment scenarios and the inability to compete with international giants. Therefore, Warren Buffett's liquidation decision is based on rationalityInvestmentsConsider to avoid further losses.
paytmAs "Indian Alipay" inModiDriven by rapid development, but due toBusinessProblems of logic and pressure from domestic and foreign competitors, its prospects become uncertain. Warren Buffett's liquidation decision was a smart choice and taught us an important lesson: the same product in another market does not necessarily lead to the same successStart a businessIt is necessary to fully understand the characteristics of the target market and the competitive environment, and avoid underestimating the existence of the problem to improve the chances of success.