Warren BuffettsubsidiaryBerkshire HathawayThe company recently liquidated India's largest digital payments companypaytm, with 1$6.4 billion sold its $25% shareholding. This clearance makes the stock godWarren BuffettHow much money did you lose?According to the disclosure of the local ** exchange in India, Berkshire in 2018 was about 2$600 million ** acquisitionpaytmApproximately 3% of the shares, at the prevailing exchange rate, were 1279 per share**7Rupee。The weighted average** of this sale was 877 per share29Rupee, according to which it is calculated,Warren BuffettThe loss per share was 31%. Taking into account exchange rates, the loss was as high as 46%. In addition,Warren BuffettAnother 5 years of time were lost.
However, this timeWarren BuffettHis defeat in India also exposed his error of judgment. AlthoughpaytmKnown as "Indian Alipay", but in recent yearspaytmLife is not easy, and even difficult. paytmFounded in 2009, when IndianInternetThe development is not mature, and the gap between the rich and the poor is huge, and many families do not even have the Internet. This givespaytmThe development of the development brings difficulties. However, at a critical juncture, Indian Prime Minister Narendra Modi stepped in and introduced a series of policy measures, including reductionInternettariffs, the implementation of the "demonetization order", etc., forpaytmIt has brought huge development opportunities. paytmof registered users grew by 40 million in just 3 months. In addition,paytmAlso obtainedAlibaba, SoftBank, BlackRock and BerkshireInvestments, strong technical strength, rapid growth of users.
However, the good times were short-livedpaytmSoon it hit a downhill slope. Unlike Alipay,paytmLack of basic payment scenarios, business logic problems. With international giants such as GooglePay, ApplePay, and Amazon Pay, entering the Indian marketpaytmFacing increasing competition. These multinational companies have mature supporting services and huge resources, andpaytmIt seems to be inadequate. So, fundamentally,paytmThere is a problem with the business logic, and it will be difficult to turn the situation around in the short term. This is tooAlibabawithWarren BuffettOne of the reasons to choose clearance.
paytmThe failure also exposed that copying a product to another market would not necessarily achieve the same success. The Indian market has unique characteristics that are different from those of ChinaInternetEnvironment. paytmThere were many difficulties in the development process, and there were many competitors, including:GoogleAmazonand other multinational giants. These companies have a well-establishedBusiness modeland abundant resources, rightpaytmIt poses a huge pressure.
In addition to this, India'sInternetThe market is developing rapidly, the cost of accessing the Internet has dropped significantly, and people's payment Xi are gradually changing. India** has introduced a series of policies to promote digital payments and increase payment awareness among the population. At the same time, internationalInternetThe giants are also increasing their presence in the Indian market. This makespaytmFacing competitive pressure from many sides, market share is gradually eroding.
Warren BuffettClearancepaytmIt may be due to the need for strategic adjustment. Warren Buffetthas been robustInvestmentsHe is known for his strategy, but he has not been without his failures. ClearancepaytmIt could be that he made a decision in order to avoid greater losses, in the current situation,paytmThe outlook for the future is not encouraging.
However,Warren BuffettofInvestmentsThe combination still contains a lot of successInvestments, he has been greatly rewarded in other companies and industries. Warren BuffettofInvestmentsDecisions have always been based on the long termValue investingThe principle that he chose to liquidatepaytmProbably because of doubts about the company's future development prospects.
In short,paytmThe development of the Indian market has experienced ups and downs, although it was once regarded as the Alipay of India, but due to business logic problems and fierce competition, its development prospects are not optimistic. Warren BuffettClearancepaytmIt may be the judgment of market changes and the state of the company, which is also consistent with himInvestmentsThe performance of the strategy. This failure also reminds us that the success of the same product or concept is not inevitable in different markets, and it requires a deep understanding of the market environment and competitors to make appropriate decisionsInvestmentsDecision-making.