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> Shareholders [..] to keep happy. In my opinion, this is the biggest flaw of the system. For many investors, a company is less about what it makes and more li
by ASalazarMX 8y ago
> Shareholders [..] to keep happy.
In my opinion, this is the biggest flaw of the system. For many investors, a company is less about what it makes and more like a process to grow their money. Even when a company becomes profitable, there's always pressure to make it even more profitable quarter after quarter.
- ucaetano 8y ago> Even when a company becomes profitable, there's always pressure to make it even more profitable quarter after quarter. Would you keep your retirement funds in a company that doesn't grow?
- reitanqild 8y agoSure, as long as it pays good dividends. Not everything needs to grow into the sky.
- ucaetano 8y agoYou do get the fact that a company with no growth but paying dividends will be worth (including the dividends you extracted) exactly what you paid for? It would be worse than buying a bond: you'll get the risk of equity with the returns of a bond.
- reitanqild 8y agoNot an economist, but I have tried to keep informed and what you say doesn't seem like it should follow. (Then again English is not my first language.)