Indian-origin tech leader Debarghya Das, known as Deedy, shared a backtest of billionaire Michael Milken's statement about Indian-origin CEOs replacing US-born CEOs in American companies, triggering a heated social media debate. Milken had previously remarked that if a US company replaced its US-born CEO with one born in India, he would buy the stock. Das tested this idea over the last 15 years and concluded that such a strategy would have multiplied investments by 50 times, yielding 7.5 times more money and an internal rate of return above 30 percent compared to the S&P 500's 14 percent.
Backtesting the Claim
Das emphasized that his finding was merely a correlation and did not establish causation. He noted that the stock price increases might not be directly attributable to the Indian-origin leaders. The post received mixed reactions, with some users dismissing it as coincidence and urging examination of companies founded by Indian-origin tech leaders as well.
Mixed Reactions on Social Media
One user commented that Indian-born executives who run major US companies typically overcame immense odds at every stage—schooling, jobs, immigration, and promotions. They argued that if America continues to admit the best talent from around the world, American companies will benefit. Another user countered that these CEOs often cut US jobs and offshore or automate them, which benefits the company but hurts the American economy. They questioned how long this trend would be allowed to continue before businesses realize that when Americans have no money, they buy nothing.
A third user claimed that stock prices rose not through innovation but through mass layoffs, outsourcing, and wage undercutting. They asserted that after two decades, such companies produce inferior products and are failing due to incompetence. Another user suggested looking at companies founded by Indians rather than those with monopolies built by previous CEOs, implying that even a monkey could run those companies once they reached a certain size.
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