Looking back on his investing journey, Khemka recalls one big regret: passing up the opportunity to invest in Amazon during the dot-com boom.
“Amazon is a mistake of omission… I never could buy Amazon, thinking that it’s not making money. And at that time, it was also an assessment that it can never make money,” he said.
Khemka advised investors—especially those managing their portfolios—not to chase what’s popular or overhyped in the market. He believes that macro trends and sector themes may seem exciting, but don’t consistently deliver forward-looking returns. “We don’t take thematic bets or macro calls from a money-making perspective,” he said, adding that such calls should only be used for risk management, not for generating returns.
Using past market trends as a cautionary tale, Khemka pointed to how themes like infrastructure and real estate were extremely popular between 2003 and 2007 but ended badly for many investors. “By the time something becomes a theme, it’s very well-known and well-followed,” he said.
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This is why he prefers a broad-based approach. Rather than betting on just one sector like capital goods or defence, he recommends diversifying across industries to reduce risk and maximise opportunity. “Money is made in the diamonds business as well as in the coal business,” he remarked, encouraging investors to look for winners across the board.
Khemka’s team focuses heavily on business quality and leadership when selecting stocks. “We focus on organisational culture as it pertains to execution and governance,” he said. While strong companies may not always be profitable today, what matters is their potential to generate superior returns in the future. “It’s superior returns on incremental capital looking forward many years,” he added, defending the inclusion of loss-making but high-potential companies in WhiteOak’s portfolio.
New-age internet companies are a prime example. While some investors hesitate due to current losses or uncertain paths to profitability, Khemka believes this is where patient, selective investors can benefit. “You can’t have a spray and pray approach… but you can’t write off either,” he said.
Drawing on his global experience—including early IPO investments in companies like Google and Alibaba—he stated that many of today’s Indian tech companies are simply at earlier stages of a similar growth journey. “In China, this story has played out a decade ago… India is just further behind on that curve,” he said.
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A similar selective approach applies to emerging sectors like renewables and electric vehicles (EVs). Khemka noted that valuations in these spaces had become overheated last year but have now corrected to more realistic levels. “It can’t have the kind of valuations it got six to 12 months ago,” he said, suggesting that today’s valuations may offer better entry points for investors.
For those wondering what to do next, Khemka’s message is clear: stay diversified, avoid hype, and do your homework—or hire someone who can. “Those who have time to do research should spend time managing their portfolios in individual stocks. Those who don’t are better off hiring a financial advisor,” he said.
For the full interview, watch the accompanying video.