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I agree that personal incentives are part of the problem. I’d also suggest that going public is another significant part of the problem. The public company bec

by rrf 18y ago

I agree that personal incentives are part of the problem. I’d also suggest that going public is another significant part of the problem. The public company becomes beholden to its shareholders and is pressured/incentivised to continually deliver growth in the value of the company or dividends, often in mature markets, which in turn can lead to the implementation of riskier strategies for delivering growth.

quasimojo 18y ago
okay explain to me how a company like google could have been privately funded to its current level. you think a bank is going to write a check for $800 million to buy servers? go ask a C-level exec at wells fargo
- nostrademons 18y ago
  It probably couldn't have grown as fast as it did, but it certainly could get to it's current size. Many of the largest companies of the industrial revolution used mostly retained earnings, sometimes supplemented by small bank loans or equity investments from private individuals. American Tobacco, which captured 90% of the tobacco market before being broken up into R.J. Reynolds, Liggett, and others. Almost the entire meatpacking industry. The Mars candybar company, which is still privately owned. Ford Motor Company, still controlled by the original founding family.
  - quasimojo 18y ago
    It probably couldn't have grown as fast as it did, but it certainly could get to it's current size. no, because banks don't even do this kind of lending anymore. to grow google organically would have taken decades. in that time they would have been crushed by competitors with access to public funds American Tobacco are you aware that american tobacco was one of the first stocks listed on the dow? sorry to blow your theory, and to boot the formation of the company was based on monopoly economics Ford Motor Company, still controlled by the original founding family. and larry and sergey own a lot of google. and jerry and david own a lot of yahoo. founders keep lots of stock, this has nothing to do with public/private ownership. the ford family extracts wealth from ford, they do not contribute to it or bankroll it

by rrf 18y ago

quasimojo 18y ago

okay explain to me how a company like google could have been privately funded to its current level. you think a bank is going to write a check for $800 million to buy servers? go ask a C-level exec at wells fargo

nostrademons 18y ago
It probably couldn't have grown as fast as it did, but it certainly could get to it's current size. Many of the largest companies of the industrial revolution used mostly retained earnings, sometimes supplemented by small bank loans or equity investments from private individuals. American Tobacco, which captured 90% of the tobacco market before being broken up into R.J. Reynolds, Liggett, and others. Almost the entire meatpacking industry. The Mars candybar company, which is still privately owned. Ford Motor Company, still controlled by the original founding family.
- quasimojo 18y ago
  It probably couldn't have grown as fast as it did, but it certainly could get to it's current size. no, because banks don't even do this kind of lending anymore. to grow google organically would have taken decades. in that time they would have been crushed by competitors with access to public funds American Tobacco are you aware that american tobacco was one of the first stocks listed on the dow? sorry to blow your theory, and to boot the formation of the company was based on monopoly economics Ford Motor Company, still controlled by the original founding family. and larry and sergey own a lot of google. and jerry and david own a lot of yahoo. founders keep lots of stock, this has nothing to do with public/private ownership. the ford family extracts wealth from ford, they do not contribute to it or bankroll it