Hello people from all world
Today I want to write to you about a particularity of investing in stocks.
Do you prefer to invest in state-owned companies or private companies? Let's get to the facts:
State-owned enterprises are those run by the government. The country's government owns most of the company's shares. Therefore, decisions regarding the direction the company will take are dictated by the government.
These companies tend to seek less profit than private companies, as they can be used by the government to control something. For example, here in Brazil, the largest company on our stock exchange is state-owned. Her name is Petrobras. It is an oil exploration and marketing company. It's very profitable. Since last year it has been breaking profit records and is paying its shareholders very well with dividends. However, the price of gasoline is very high here in Brazil. So, the government, which owns most of Petrobras' shares, changed its manager and put in a manager who doesn't let the price of gasoline go up. This artificial price control makes Petrobras profit less and distribute less dividends to shareholders.
On the other hand, when a state-owned company is doing poorly and making losses, the government can inject money into it to reduce or eliminate its debt. This has already happened in several countries, including here in Brazil.
In private companies this does not happen. These are companies that generally have their shareholding control dispersed among several investors and a large part of their shares are traded on the stock exchange. These companies are entirely for profit. In the long term, they tend to give much more return to shareholders than public companies. In addition, because these companies are always looking for profit, they are more competitive, so the investment they make in themselves is much greater, making them remain competitive in the long term.
However, when these companies are poorly managed, they tend to go bankrupt and take the shareholders' money away. They don't usually get help from the government.
So guys, with this data, which type of company do you prefer??
I hope you enjoyed. Thank you all and good morning!!!
source of picture: https://www.educba.com/public-company-vs-private-company/
Posted Using LeoFinance Beta
No Brasil tem dois fundos de investimento (ETF) justamente pra esse público:
PUBL11 que investe apenas em empresas estatais
NOGV11 que investe apenas em empresas sem participação do governo
Acho que ambos ainda não começaram ser negociados, estão captando investidores, mas vai ser interessante ver a evolução de ambos nos próximos anos
Muito obrigado pela informaçao, man!!