Bengaluru's tech wealth a mirage: Nikhil Kamath

Nikhil Kamath, the co-founder of Zerodha, expressed his belief that Bengaluru possesses a significant amount of paper wealth, suggesting that the wealth in the city may be more superficial than tangible. He noted that individuals in Bengaluru often accumulate wealth through stock options and other paper assets, particularly those working in the tech industry.

Bengaluru’s primary wealth stems from tech companies

He highlighted that the wealth in Bengaluru primarily stems from tech companies, leading to a facade of affluence without substantial expendable wealth. Kamath expressed, ‘It’s not real money. Bengaluru has the most paper wealth and very little expendable wealth. The paper rich from here made money in tech companies.’

Reflecting on his early career, Kamath recounted his first job experience at a call center in Bengaluru where he earned ₹8,000 selling health insurance. He noted the contrast in feelings as his peers graduated and entered the workforce.

Still live in Rented House: Kamath

Previously, Zerodha CEO Nithin Kamath mentioned that he resides in a rented home by choice, rather than owning one. Kamath also discussed his preference for renting over buying real estate due to what he perceives as inflated valuations.

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He stated, ‘I could not get myself to buy real estate at today’s valuations because personally, I think they are ridiculous and retarded.’ Despite his success, Kamath revealed that he continues to reside in a home he does not own, citing emotional attachment and financial rationale. He affirmed, ‘The only one home that I have is where my parents live and that is more for emotional reasons, it will never make sense for me to buy a home because the rental yield I am dishing out is significantly lower than the capital deployed, the returns they give me.’

His comments in the video have sparked discussions among internet users. Some support Kamath’s preference for renting a house, while others believe that purchasing a home is a more advantageous decision in the long term.

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