Professor Bakshi believes that MRF's high stock price over the long term also work like a peacock's tail and signal high quality to potential investors. Warren Buffett wrote about this in 1983 when Berkshire Hathaway was trading at $1,300. The end result of this could be that only high quality and discerning investors might choose to put their money into such high price stocks. And maybe that's just the kind of investors that MRF wants too.
Typically, we like to dive into the history of a company to see how it got here. And then attempt to fathom what the future could hold. But enough has already been written about how MRF grew its business since the time of India’s independence.
So in today’s episode for 17th June 2023, we thought we’d look at this historic 1 lakh mark through a different lens and offer some theories for you to mull over.