Billionaire Michael Milken earlier said he buys the stock of a company if they replace the American CEO with an Indian-born one.
Indian-origin tech leader Deedy (Debarghya Das) shared what billionaire Michael Milken said about Indian-origin CEOs replacing US-born CEOs in US companies and presented the results of it, triggering a huge social media debate. Milken said earlier that if a US company replaced the US-born CEO with a CEO born in India, he buys the stock. Das said he backtested the idea. “In the last 15yrs, that would’ve 50x’d your money: 7.5x more $$ and >2x IRR vs S&P500: 30% vs 14%!” Das concluded.As the conclusion triggered off a debate over Indian-origin leadership of tech companies, Das said it was just a correlation that he observed and does not establish that the stocks went up because of the Indian-origin leaders.The responses to the post were mixed as many claimed that it was just a coincidence and one should look into the companies founded by Indian-origin tech leaders as well. “The Indian-born/immigrant execs who end up running major US companies are usually people who had to beat insane odds at every stage; school, jobs, immigration, promotions, all of it. This insight is pretty simple: if America keeps letting in the best people from everywhere, American companies win,” one wrote. “The first thing they start doing is cutting US jobs and offshoring or automating them. Good for the company but it’s been going on for 50 years now. How much longer will this be allowed to happen before businesses realize that when Americans have no money, they buy nothing,” another wrote.”The stock price didn’t go up through innovation, it went up because they did mass layoffs, outsourcing and undercuting wages. It’s been 2 decades now. All those companies produce slop and are dying under their own incompetence,” a third user wrote.”Now do companies started by Indians. Not companies that have a monopoly built by the previous ceo. Monkeys could run the companies that were mentioned once they reached the size when those CEOs took over,” another wrote.
