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Growth comes from reinvestment of capital into the business. This makes sense from a shareholder perspective when the risk-adjusted return on this invested capi
by blahblah3 10y ago
Growth comes from reinvestment of capital into the business. This makes sense from a shareholder perspective when the risk-adjusted return on this invested capital outweighs the returns capital could get elsewhere (other stocks).
Some companies will actually stop growing and start paying dividends/sharebuybacks for this reason.