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Why Nvidia would want to invest in prospecting firms instead of just selling pickaxes never made sense to me in the first place.
by mikkupikku 8mo ago
Why Nvidia would want to invest in prospecting firms instead of just selling pickaxes never made sense to me in the first place.
- dmix 8mo agoMaybe they have too much money from selling so make pickaxes and chose to reinvest into the industry that keeps funneling them money.
- mikkupikku 8mo agoI just don't get it. If they have too much money, don't the shareholders want dividends? If I were a shareholder I'd be pissed that Nvidia is trying to be part of the bubble instead of taking all the cream off the top.
- kristianp 8mo agoShareholders want capital gains, not dividends, because dividends attract a higher tax rate. If they started paying huge dividends savvy investors might look elsewhere. The implication is that NVidia wants to be seen as the best place to put your money. If they're paying a dividend it means they can't use it to increase their own profits.