For now, let’s put aside the important question about whether stock prices in emerging markets are in bubble territory or not. And look at how it pays to have your companies listed in the frothy markets of Asia and Latin America.
News agency PTI reported on Wednesday that Mukesh Ambani has overtaken Lakshmi Mittal to become the richest Indian in the world. That’s because the companies that are controlled by the senior Ambani brother have had a fantastic run in the stock market over the past few weeks.
We have seen a similar thing happening elsewhere, when Mexican billionaire Carols Slim pipped Bill Gates to the post to become the world’s richest man. Once again, that’s because his companies are listed in Mexico rather than the US.
Now this brings us to an interesting question. Some MNCs and local groups have delisted from India in recent years. Wouldn’t they have been richer staying listed? Looks like it.