Where Is Nikhil Kamath Investing Today?

Summary

Nikhil Kamath says he is favoring contrarian investments over high-valuation, high-growth stocks. He sees rapid disruption across fintech and is skeptical that many listed fintech companies have durable competitive moats.

Investment themes and views

• Fintech and lending: Kamath did not name a specific fintech pick. He would consider businesses that lend to people with no credit history, including microfinance, first-time lending startups, and possibly buy now, pay later (rendered in the subtitles as “BNBL”). His rationale is that rising productivity could increase demand for credit.
• Live events and leisure: He says he is buying hotels and BookMyShow. He sees live events, sports, entertainment, travel, and tourism as potential beneficiaries if productivity rises and people spend more on premium experiences.
• Energy transition: He says he has bought a significant amount around the energy-transition theme. He sees energy storage and delivering power when needed—not generation—as the key challenge. He also mentions the possibility of new battery chemistries amid uncertainty about lithium supply from China.
• IT services: He says he is buying IT services, citing Infosys as an example. His thesis is that service firms can use AI tools and agents to make engineers more productive, including lower-cost workers.
• Thorium and fusion: Thorium and private-sector participation are raised as possible contrarian areas, though it is unclear whether Kamath is investing in them. He considers fusion too distant to be an investment theme today and says its eventual power could cost 6–7 times as much per unit. He contrasts this with solar, which he says has become very cheap.

Numbers and valuation points

• Infosys: Approximately $6 billion in cash and a valuation of 12–13 times PAT (profit after tax), according to Kamath.
• Infosys AI revenue: Cited at 8–9% for the quarter. The subtitles do not clarify whether this refers to a share, growth rate, or another measure.
• AI-enabled worker example: An engineer willing to work 12 hours a day for $500 a month, supported by AI tools and agents.
• China lithium-related restriction: Said to have been extended by one year; the exact policy is not specified.

Framework and cautions

• Look for contrarian opportunities rather than high-valuation, high-growth stocks.
• In energy, focus on storage and reliable delivery, not just generation.
• In fintech, consider the underserved market of people without credit histories rather than assuming existing listed firms have strong moats.
• Kamath cautions that software engineers may become less relevant, while also arguing that AI could strengthen the economics of IT-services firms.
• No explicit “not financial advice” disclaimer appears in the subtitles.

Presenters and sources

Nikhil Kamath is identified by name. Other speakers are not identified in the subtitles; Harshil is mentioned in the discussion.