Berkshire Hathaway-backed Paytm stock takes a tumble in trading debut

Warren Buffett in his 2019 annual letter told shareholders to prevent that specialize in value per share as a result of the stocks it holds as investments will be “extremely capricious.”

Berkshire Anne Hathaway (BRK.B -0.2%) (BRK.A -0.4%) shareholders ought to keep that in mind on the news that shares Paytm (PAYTM), a digital payment firm that went public in India, tanked twenty seventh in their 1st day of commercialism.

Berkshire is not the solely high-profile capitalist to require a stake within the company before its mercantilism. hymenopter cluster (NYSE:BABA) and SoftBank’s Masayoshi Son, BlackRock (NYSE:BLK), and North American country retirement plan Investment Board also are investors, consistent with CNN. With backers like that and Paytm’s standing united of India’s largest IPOs and because the biggest payments platform within the country, its 1st day of commercialism was absolute to attract loads of attention.

The unsatisfying 1st day of commercialism is not doubtless to harm Berkshire’s (NYSE:BRK.B) value by abundant, though. In 2018, the Economic Times reportable that Buffett’s nondepository financial institution was taking a stake of ~$300M. At Sept. 30, 2018, Berkshire’s investments in equity securities amounted to ~$201.2B, creating Paytm but I Chronicles of its equity holdings, if it had been a part of the portfolio then.

Berkshire’s Todd Combs, one amongst Buffett’s finance lieutenants, joined Paytm’s board in August 2018.

See the expansion of Berkshire’s long investments over the past ten years on its record.

SA contributor Aswath Damodaran digs into Paytm’s financials to place a price on the fintech.