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> If a small number of shareholders reap all the profits It's not greater profits but lower costs (and prices) that matter here.
by wisty 9mo ago
> If a small number of shareholders reap all the profits
It's not greater profits but lower costs (and prices) that matter here.
- adrianN 9mo agoLower costs only translate into lower prices if sufficient competition is there. That is not true for many markets
- dr_dshiv 9mo agoThat’s the big difference in China. When there is competition for everything —> prices are low. Not a lot of profits for investors, though…
- wisty 9mo agoUntrue, most of the time. Even with a monopoly, there's still a demand curve. Would you rather sell one widget for $1000 or 1000 widgets for $10? Does the answer depend on costs?
- WalterBright 9mo agoThe ROI for a large corporation tends to be around 10%.
- eru 9mo agoWhich markets do you have in mind? I'm all in favour of lowering barriers to entry, too. We need more competition. Be that from startups, from foreign companies (like from China), or from companies in other sectors branching out (eg Walmart letting you open bank accounts).
- deleted 9mo ago[deleted]