5 ms·
That’s the downside of requiring infinite (in the sense of “never-ending”) growth, and not being content “just” with profit.
by msdz 2mo ago
That’s the downside of requiring infinite (in the sense of “never-ending”) growth, and not being content “just” with profit.
- AnimalMuppet 2mo agoI'm moderately sure that there's a part of private equity that would be content with a steady profit (at the right price). It's just not the part that you usually hear about.
- bluGill 2mo agoThe path to "get rich quick" is selling a lot of cheap junk for a high price. In order to make this work you need to constantly be on the lookout for a new scheme though as the money will run out on the old one fast. The get rich not quick as quick (and perhaps not quite as rich) it make a good quality product with consistent margins as you earn a reputation.
- altacc 2mo agoPrivate equity is often mining a company for money for a few years before discarding it or rolling it up with something. Quick results, not long term stability & growth. Profitable income from the company is not always a goal, often the money is to be made in asset stripping, financial engineering, management fees, etc... then reducing with layoffs, underinvestment, vendor abuse, etc... until nothing is left but a husk that is profitable enough on paper that it can be sold on.