Sorry I was out all day, so couldn't respond. I was reacting to the comparison of property management company to your putative "company management company" (whi

Sorry I was out all day, so couldn't respond. I was reacting to the comparison of property management company to your putative "company management company" (which eventually gets revealed as a typical public company in your essay). That was the context in which I said companies have people, and people are not housing, and your objective of an "optimal" strategy doesn't hold water. My broader point is that companies/people (including founders) have goals, dreams, aspirations ... maximizing return on investment may not even be the biggest goal. It is a late 20th century Milton Friedmanite doctrine (which classical libertarians actually disagree with) that the only purpose of a company ought to be to maximize shareholder wealth. I mention this because you refer to "optimal" strategy, but in this case, there is no such optimal strategy, because the goals are so extremely diverse and often mutually contradictory. Interestingly, shareholder wealth maximization (which academics are so fond of) is a proposition most real world capitalists don't actually subscribe to - witness the resistance of Jerry Yang to being absorbed. It has little do with long term shareholder wealth maximization (though he has to pretend that it is, in order to keep the lawyers at bay), and everything to do with preserving what he perceives as a unique Yahoo culture from being decimated (somewhat justified, in my opinion), even at the cost of losing substantial value as a shareholder himself. There is no right or wrong in this (I think his cause is hopeless myself), just that this is how Jerry Yang, the capitalist part owner of Yahoo, operates. What is the goal of a company? It ultimately boils down to a religious question of "Who am I? What do I want?" which each founder (and each employee) has to ask himself/herself. DHH laid out his answer, and I bet an awful lot of founders identify with it. You have your school of thought on this, which I bet a lot of founders identify with too. But yours is not any kind of optimal extreme of DHH.