Sridhar Vembu is the co-founder and CEO of Zoho Corp. | Facebook
The equity market scene in India has attained insurmountable penetration in the new millennium. This is more so the case in the past decade, especially with greater diffusion of technology. The dawn of the age of the internet has only augmented the presence of the larger population and the curiosity of others towards the platform.
At a time like this, people often ruminate over the most efficient means of investment and maximising their ROI or return of investments.
Some look at newer avenues, abandoning the old ones, while others look elsewhere.
Sridhar Vembu On Investing
Sridhar Vembu, founder of Indian tech and productivity software company, ZOHO shared his thought on the changing times.
Vembu, who is known for his activity on X, took to the platform to share his thoughts on the new and old ways. In his post, he said, “It is worth remembering that the past 25+ years have seen the grandest financial bubble in history. That has warped our perspective about everything, and I do mean everything.”
This also accounts the scale at which investments happen in this day and age.
Going back in time, Vembu cited the example of Benjamin Graham, an American Economist, who is known as the father of value investing.
Graham had a net worth of around USD 50 million at the time of his death.
Generational Difference
In his post, Vembu further added, “As a useful reminder, Ben Graham, Warren Buffett’s mentor used metrics like 1x book value or past 10 years of earnings as fair valuation.”
Furthermore, speaking about the general distinction, Vembu added, “I am sure an entire generation of money managers think of those as hopelessly outdated; after all, we have large companies trading at 30x estimated future earnings.”
However, he ended his post saying, “There is only one thing true in Finance: there is nothing new under the sun and whatever happened will happen again.”
By this, Vembu tried to highlight the ever-changing landscape, that many a times tend to revive back to where it started.
‘Markets Remain Irrational..’
A X user reacted to Vembu’s post and said, “People have been saying things ‘will happen again’ for years now, but it’s testing the patience of ppl who are playing safe and seeing others make outsized returns in the market. Confusing times.”
Vembu replied to this, and added another quote. He said, “Markets can remain irrational longer than we can remail solvent” is the right quote.”
