2 ms·

I might've missed it but I don't think the article actually links to the letter. I thought it was interesting that they called to reduce the pay of non-engineer

I might've missed it but I don't think the article actually links to the letter. I thought it was interesting that they called to reduce the pay of non-engineers rather explicitly. https://www.tcifund.com/files/corporateengageement/alphabet/15th%20November%202022.pdf https://www.tcifund.com/files/corporateengageement/alphabet/...

sschueller 4y ago
Well I for one call on Google to cut any stock buy backs and dividen payment.
- lesuorac 4y ago
  GOOG and GOOGL don't have dividends. TCI actually calls on them to increase buy backs as "Alphabet's large cash balance is serving neither shareholders nor the company" and "share price is down 34% YTD ... The stock is very cheap ... Alphabet should ... significantly accelerate share repurchases". I personally disagree with some of this logic though. IMO, a large cash balance is serving the company as a hedge at going bankrupt and is less than a quarter's worth of expenses (~150B [1]). While companies aren't the same as individuals, I do think you can be justified in saying you're keeping 3 months worth of expenses in the bank. [1]: https://abc.xyz/investor/static/pdf/20221025_alphabet_10Q.pdf?cache=e4fe24f https://abc.xyz/investor/static/pdf/20221025_alphabet_10Q.pd...
  - PeterCorless 4y ago
    In a world of increased fiscal uncertainty having cash-on-hand makes a huge difference in being able to weather storms. We are literally weathering international warfare in Europe, a pandemic, and uncertainty whether we are heading to a period of inflation or recession [both?]. While minimizing your cash position is smart as a hedge against inflation — dollars will be worth less tomorrow so get rid of them now — it also helps weather a bad quarter or even a bad year or two. Being cash-strapped when a stochastic negative event hits means you are suddenly FORCED to take actions you would prefer not to. Like massive layoffs, scaling back on your core offerings, or cutting off your nose for future growth business.
  - Jabbles 4y ago
    > 3 months It's 9 months.

sschueller 4y ago

Well I for one call on Google to cut any stock buy backs and dividen payment.

lesuorac 4y ago
GOOG and GOOGL don't have dividends. TCI actually calls on them to increase buy backs as "Alphabet's large cash balance is serving neither shareholders nor the company" and "share price is down 34% YTD ... The stock is very cheap ... Alphabet should ... significantly accelerate share repurchases". I personally disagree with some of this logic though. IMO, a large cash balance is serving the company as a hedge at going bankrupt and is less than a quarter's worth of expenses (~150B [1]). While companies aren't the same as individuals, I do think you can be justified in saying you're keeping 3 months worth of expenses in the bank. [1]: https://abc.xyz/investor/static/pdf/20221025_alphabet_10Q.pdf?cache=e4fe24f https://abc.xyz/investor/static/pdf/20221025_alphabet_10Q.pd...
- PeterCorless 4y ago
  In a world of increased fiscal uncertainty having cash-on-hand makes a huge difference in being able to weather storms. We are literally weathering international warfare in Europe, a pandemic, and uncertainty whether we are heading to a period of inflation or recession [both?]. While minimizing your cash position is smart as a hedge against inflation — dollars will be worth less tomorrow so get rid of them now — it also helps weather a bad quarter or even a bad year or two. Being cash-strapped when a stochastic negative event hits means you are suddenly FORCED to take actions you would prefer not to. Like massive layoffs, scaling back on your core offerings, or cutting off your nose for future growth business.
- Jabbles 4y ago
  > 3 months It's 9 months.