{"id":14113282,"date":"2020-10-25T06:30:54","date_gmt":"2020-10-25T06:30:54","guid":{"rendered":"https:\/\/stockviz.biz\/index.php\/2020\/10\/25\/the-government-of-india-undertakers\/"},"modified":"2021-09-13T18:22:55","modified_gmt":"2021-09-13T12:52:55","slug":"the-government-of-india-undertakers","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2020\/10\/25\/the-government-of-india-undertakers\/","title":{"rendered":"The Government of India Undertakers"},"content":{"rendered":"\n

There is perhaps no bigger wealth destroyer than the government.<\/h2>\n\n\n\n

\u201cIf you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand\u201d – Milton Friedman<\/p><\/blockquote>\n\n\n\n

It sounds logical that State Owned Enterprises (SOE) will lag their private sector counterparts. The most obvious reason being that incentive structure of both sectors makes a lot of difference. <\/p>\n\n\n\n

A company run where everyone is driven to achieve more efficiency and compete in order to deliver value to its shareholders and managers are incentivized to achieve that goal will always do better than SOEs.<\/p>\n\n\n\n

But in India it\u2019s not mere underperformance but pure wealth destruction, which cannot only be attributed to lack of business acumen or slow agility.<\/p>\n\n\n\n

It\u2019s mix of that with heavy load of political influence. The short-sightedness and stupidity of the government and at the end the government not thinking about using these enterprises to create wealth.<\/p>\n\n\n\n

Here is evidence of 20 biggest well-known names and their performance over the last 10 years not counting dividends.<\/p>\n\n\n

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