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> His interest isn't the long term well-being of the company, his interest is a predictable short term peak in valuation. Chaining short term profits is how the
by credit_guy 4y ago
> His interest isn't the long term well-being of the company, his interest is a predictable short term peak in valuation. Chaining short term profits is how these funds get outsized returns
That's a plausible theory. Except the letter I linked to starts like this:
TCI has been a significant shareholder of Alphabet since 2017. We currently own shares valued at more than $6 billion, reflecting our strong conviction in Alphabet's future.
Five years does not sound that short-term to me.
- polygamous_bat 4y agoFor most of the five year period, Alphabet has been giving them magnificent returns, peaking at 200% gross. Only now it has been hit with the economic downturn, so it makes sense that all of a sudden they are trying to sell and get out.
- sudosysgen 4y agoI'm sure that's the way they want to spin it. However, TCI is down around 20%, and it's pretty clear that they intend to juice Google in the short term to make good on their recent losses. I'm sure they have had a significant share in Google, but this share is a much bigger proportion in recent times of their portfolio. By any common wisdom they should be diversifying anyways.