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Re: Good business vs. good investment
John:
I definetely agree with what you said. However, I just want to tell you that
I meant "private benefits" alone and not "profits" vs "socially concious
investment". The only point is that by buying the "state enterprises" those
people who bought them were not thinking on making them productive and
efficient but on speculating with them. Those buyers will recover their
investment (and maybe get some profits) before "competition arrives". Then
they might sell shares in order to then making them productive or just resell
the enterprise in pieces to create local natural monopolies. So, the
modernization (if any) comes after the "competence" arrives not before. And
the benefits to consumers may not come in any of the two scenarios. So, the
"good business" comes first and then, if circumstances allow it, the "good"
investment might come. The difference is between short run profits motivated
by speculation and "long run profits" motivated by productivity and
efficiency. But, once again, I agree with what you said but maybe I did not
explain mayself well enough or the idea is not very clear.
Jorge