Tuesday, August 1, 2017

Mukesh Ambani versus some petty financial analysts

One thing I frequently wonder when I read bearish comments/reports from these so-called financial analysts about large family-owned global companies and/or their owners and owners' ideas is this - should you trust the wisdom, judgment, experience, track record and planning of the owner, or should you trust the thoughts of these petty "analysts" who make a living passing lofty judgments on others' companies?

"Local brokerage Kotak Securities Ltd. sounded a warning on July 23 when it downgraded Reliance’s stock to reduce. “We remain wary of high capex run-rate and rising net debt levels,” wrote Mumbai-based analysts Tarun Lakhotia and Akshay Bhor." [link]

Shouldn't we rather trust the long-term vision and planning of Mukesh Ambani than some "Tarun Lakhotia and Akshay Bhor", chaps who have likely never actually run any company or done any kind of business, and who still dare to declare as bearish the future of the mammoth entity that RIL is, based only upon "high capex run-rate and rising net debt levels", with no look into the tactical and strategic plans of RIL and its constituents? What do these chaps know about Mukesh's vision about Jio? Can they "feel" the potential in Jio that Mr. Ambani can? Not at all, in all likelihood.



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