MDA – Mukesh Dhirubhai Ambani – the man the world loves to hate.
If you are a shareholder the chances are you love him, if you missed buying his shares, well he did give you a lot of chance to buy. In fact at Rs. 970 it is still a good buy.
However, if you believe that he is a crook who takes the country for a ride, the bureaucrats are in his pocket, etc. etc. you may be right too. Most industrialists would love to do what he does, but are unable to do so.
Let us accept one thing – he has created shareholder value – despite the fact that in the last few years he has lagged even the index. That could be temporary – or permanent. However EVERY company that is working for shareholder interest has to work for the shareholder. I will judge a company by what it does to my share price. If you had invested Rs. 10,000 in Wipro in 1980 you would be sitting on more than Rs. 500 crores today. That is what Azim Premji did for your wealth. Ditto for many industrialists – Bajaj Auto, Hdfc, Cipla, Eicher, Hero Honda, Infosys, TCS, Tata Motors, Colgate, HuL, ….the list is endless.
Similarly in the international space companies that have created wealth include Berkshire Hathaway, Coke, McDonalds, PnG, Exxon, Goldman Sachs, Barclays, …of course the list is wrong.
It is very important that as a shareholder you do not consider whether the company is moral, ethical, etc. IT IS NICE TO DEBATE ABOUT THAT, but as an investor your company should create wealth. THAT IS THE ONLY way to judge a company. Not whether the chairman leads a simple life, cleans his own toilet, travels economy – all humbug.
The Economist claims to be a good business magazine with good quality of writing. As a regular reader for a very long time, I too believed that they were. However, their coverage of India and India related events is nothing short of pathetic. They had done many many articles bashing Na Mo. I hope Na Mo treats it similarly when they seek an interview.
The Economist had done an article on Mukesh Ambani – and the article was nothing short of pathetic. Mukesh Dhirubhai Ambani is a good successful businessman who does what is good for his shareholders. If you do not like that, sell your holdings and move on.
This article is flawed – about the facts, and about picking up wrong threads, and being selective.
So here is another story telling you why the Economist story is just poor journalism. It is not whether MDA is good or bad…read judiciously
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