Warren BuffettsubsidiaryBerkshire HathawayOn the 24th local time, it announced the liquidation of India's largest digital payment companypaytm, with 1$6.4 billion of *** its holdings of 25% stake. The result of this clearance is,Warren BuffettLost a lot of money. According to data disclosed by the India** Exchange, in 2018 Berkshire was ranked at a rate of about 2$600 million** at 1279 per share7Rupeeof** acquiredpaytm3% of the shares. However, the average selling price for this clearance was 877 per share29RupeeWarren BuffettLost a huge percentage. Considering the strength of the US dollar andRupeeDepreciation factor,Warren BuffettThe loss was as high as 46%, and this loss lasted for 5 years.
Added:Warren BuffettInvestmentsThe decision to make a huge setback in this clearance was encountered. paytmAs India's largest digital payments company, it looks like it has a lot of potential. However, due to changes in the market environment and the limitations of the payment platform itselfpaytmThe development did not meet expectations, so thatWarren BuffettFell into a huge loss.
paytmIt is known as "Indian Alipay", but it has a very different development trajectory from Alipay. The premise of Alipay's rapid rise is the success of the company, because people need an online payment platform for shopping. However,paytmMuch of the success depends on the Prime Minister of IndiaModipolicy support. ModiThe Digital India strategy was launched in 2015 to promote entry for the people of IndiaInternetEra. At the same time,ModiThe introduction of the "demonetisation order" to combat money laundering and counterfeit money has also been directly stimulatedpaytmgrowth. Due to the underdeveloped network in India,InternetTariffs are expensive, and the poor people can't afford themModipolicy for:paytmOpportunities are offered.
Addendum: India is a country with a large population, but the gap between the rich and the poor is huge, and many people do not have an internet connection. Therefore,paytmIt did not have a lot of success in its early years. However,Modipolicy has given impetus to IndiaInternetThe development of the MakeInternetThe cost of the reduction has been promotedpaytmgrowth.
AlthoughpaytmIn the early stages of development achieved rapid growth, but due to itsBusinessLogical problems, facing a growing dilemma. withAlibabaCompared with AlipaypaytmLack of a wider range ofBusinessApplication scenarios, only inModiThe rapid growth has been achieved with the support of the policy. However, with competitors such asGooglePay, Apple Pay, and Amazon Pay, among others, enter the Indian marketpaytmFind yourself facing competition from international giants. GoogleAnd Amazon has a mature app store and e-commerce platform, making itpaytmCan't compete with it. So, fundamentally,paytmofBusinessThere is a problem with the logic and a lack of sufficient competitive advantage.
Added:paytmIn the early days of its establishment, Alipay's success path was not considered. On the contrary, it first has a payment platform, and then it thinks about supporting the e-commerce platform. This strategy makes:paytmInBusinessThere are huge shortcomings in the field of application, and it cannot compete with competitors.
Warren BuffettClearance India Payment CompanypaytmThe action reveals an interesting phenomenon: the same product does not necessarily achieve the same success in different markets. paytmInModipolicy support has achieved a certain growth, butBusinessProblems with logic and challenges from competitors put it in a bind. Warren BuffettThe failure also reminds us that in different markets,Investmentsneed to understand and adapt to the local areaBusinessenvironment and market rules to be successful.