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Zerodha CEO Nithin Kamath, known for his educational comments related to stock markets and trading on social media platforms, on Saturday expressed fear regarding the sharp drops in stock prices of listed new-age technology companies around the globe. According to Kamath, only a small percentage of technology firms have been able to recover the losses.

In a series of tweets, the Zerodha head advised the new-age tech firms to 'prioritize lower volatility long term versus max short term gain,' while making a growth forecast.

 

Nithin Kamath said that the networth of the core teams in most new-age businesses is tied to ESOPs, and added that "The more a company tries to talk price up in short term, the higher the odds of large drops & volatility in the long term".

 

Citing a witty reference of Bollywood legend Amitabh Bachchan's dialogue from the film Sarkar, " Nazdiki fayda dekhne se pehle, door ka nuksaan sochna chahiye (One should think about long-term loss before cherishing short-term gain)", Kamath said, "When companies are mostly valued based on what they project, counterintuitively, it may be a good idea to talk down than talking up the price. Lower volatility in stock price is also maybe something companies should strive for, which is good for long term investors as well".

 

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