Nithin Kamath believes that “pessimism” could be an underrated skill while running a business in the context of avoiding a major mishap when banks run into trouble.
What Happened? In the context of the Silicon Valley Bank crisis, Kamath noted in a tweet that companies often run into a host of hurdles along their life cycle and being unable to access money in the bank could be one of the most frustrating things to wake up to.
“The lesson from SVB or Yes Bank in the Indian context is to have funds, especially working capital, distributed across a bunch of banks,” stated Kamath.
As a disclaimer to business mitigating hurdles, the Zerodha co-founder says that every business “will be exposed to a black swan event at some point; the idea is to survive those.”
“I think an underrated skill set for running a business is being pessimistic. Consider everything a risk and do everything you can to mitigate it,” the Zerodha CEO says.
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Friday’s dramatic failure of Silicon Valley Bank, which focuses on tech startups, was the biggest since the 2008 financial crisis. The collapse of SVB has since sent shockwaves across the worldwide tech ecosystem and investor community as the 40-year-old bank collapsed in less than 72 hours.
Photo: World Economic Forum on Flickr
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