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This is a great insight. Even if execs know $x billions will be wasted on such trendy projects (toy projects to those who know what’s going on), they will still
by raincom 5y ago
This is a great insight. Even if execs know $x billions will be wasted on such trendy projects (toy projects to those who know what’s going on), they will still go and spend $x billions. Why? Since it keeps the market cap going up. This positive delta in the market cap is almost 10 times more than $x billions.
- lotsofpulp 5y agoNot for IBM. https://www.macrotrends.net/stocks/charts/IBM/ibm/market-cap https://www.macrotrends.net/stocks/charts/IBM/ibm/market-cap It is even worse than it looks considering the opportunity cost of not sticking the money in basically risk free and cost free SP500 ETFs. Even Warren Buffett took a huge bath on IBM.