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According to https://www.plansponsor.com/kodak-outsources-management-of-overfunded-u-s-pension-plan/ https://www.plansponsor.com/kodak-outsources-management-of-
by skmurphy 3y ago
According to https://www.plansponsor.com/kodak-outsources-management-of-overfunded-u-s-pension-plan/ https://www.plansponsor.com/kodak-outsources-management-of-o... it's $6.5 billion. But pension fund management is mandated by regulation. Google "cash on hand" is https://companiesmarketcap.com/alphabet-google/cash-on-hand/ https://companiesmarketcap.com/alphabet-google/cash-on-hand/ $111 billion.
The question I am having trouble parsing is who makes the decision to become a pension fund at Google given their historical focus has been on technology. It's a significant pivot.
At a small closely held firm I can see the owners deciding to use the corporation as a vehicle for managing retirement funds (or inter-generational wealth transfer) but Google has a much more diverse base of owners with divergent interests.
- riku_iki 3y ago> who makes the decision to become a pension fund at Google given their historical focus has been on technology I don't think anyone said Google has to become pension fund. They can become some generic investment fund: invest into stocks, other funds, bonds etc, or focus on tech investments.
- skmurphy 3y agoSorry "pension fund" was a typo on my part, I meant investment fund.
- elSidCampeador 3y agoBerkshire Hathaway. Not a "true" investment fund but not far off either.
- skmurphy 3y agoI would characterize them as a conglomerate operating in multiple lines of business that rely on a financial perspective and a sound investment thesis for much of their decision making. Unlike a mutual fund or most other investment firms they make very few investments or divestments over time. The thesis I am fighting against is that all it takes to become a successful investor is a big pile of cash. There many many counterexamples. Buffet and Munger at Berkshire Hathaway prove a different point: a sound investment thesis pursued diligently to enable compounding can yield very attractive returns.
- dotcoma 3y agoGoogle could invest only in woke companies and make a small fortune — by starting off with a large one.
- riku_iki 3y agoso, what's your concerns then? They already operate like investment fund: its not like they keep pile of 100+B cash, they invest it in various securities, and directly into startups through Google Ventures. If main business dies, investment part will continue operating.
- skmurphy 3y agoMy point is that they don't operate like an investment fund and I am not aware of any technology company that survived the collapse of it's primary revenue stream by changing into an investment fund.