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How do you define liquidity? If there is no way to take your investment, and turn it into liquid cash in the form of a stock sale, or dividend, then what is t
by ghshephard 11y ago
How do you define liquidity? If there is no way to take your investment, and turn it into liquid cash in the form of a stock sale, or dividend, then what is the purpose of said entity? Sounds more like a foundation with some broader goal (societal, religious, environment, etc...) than a financial investment to me.
- dbcurtis 11y agoAhhh... we have discovered a True Speculator :) If sale of the asset is the only way your asset returns cash to you, then it is certainly speculation by my above definition. Have you not considered operating a business as an on-going entity producing profits on a regular basis? Or have you become so blinded by the VC model that you can't imagine doing anything other than selling your stock to the greater fool? I can assure you that my friend's brewery produces liquidity in the form of cash as well as libations. Well, the latter turns into the former, to be most precise. It is striking that actual operating profits have become such an insignificant part of the asset valuation process that some people forget the existence thereof.
- ghshephard 11y agoWhat purpose are profits if you don't liquidate them? Unless you are Scrooge McDuck and you just enjoy diving into vaults of moola. (not sure if I'm dating myself with that reference)