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Buffett's magic not working in Dalal Street, says report

Buffett's magic not working in Dalal Street, says report

Buffett's magic not working in Dalal Street, says report
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By CNBC-TV18 Oct 25, 2019 6:42:02 AM IST (Updated)

Berkshire Hathaway recently purchased 6.1 lakh shares of RBL Bank, whose price has crashed more than 60 percent in the past six months.

Warren Buffett’s magic doesn't seem to be working in Dalal Street, reported The Economic Times. Buffet’s, the report said, second investment in a listed Indian company has hit a rather rough patch highlighting the complications that come with investing in the Indian market.

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The development, the report added, emerged after Berkshire Hathaway recently purchased 6.1 lakh shares of RBL Bank, whose price has crashed more than 60 percent in the past six months. While the shares were purchased at Rs 667 in May it has dropped to Rs 250 on Wednesday.
The stock, said the report, has taken a hit after a sharp rise in bad loans in the company’s books and the outlook remains weak for the bank.
This is not the first time that Buffett has faced a setback in India. Various reports have indicated that he invested $1 billion in the public issue of the Oil and Natural Gas Corp (ONGC), whose stock price more than halved after the IPO.
The performance of Paytm, which was Berkshire’s first significant investment, has also remained lacklustre. One97 Communications, the parent of Paytm, nearly tripled its losses in FY19 after Berkshire invested $300 million in Paytm back in 2018, said the report.
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