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Google doesn't pay dividends or give public shares voting rights, while I get it that people believe the intrinsic value will appear at some point, this is not

by qdog 13y ago

Google doesn't pay dividends or give public shares voting rights, while I get it that people believe the intrinsic value will appear at some point, this is not how I would like to invest money in a company, regardless of what price the stock hits.

vpeters25 13y ago
I think the same and wonder why aren't shareholders pressuring Google to start paying dividends.
- jpadkins 13y ago
  because goog is a type of tech startup fund. Its a bet that google can identify, acquire, and integrate high quality tech companies and get better returns than any etf or hedge fund can. Some investors want google to take those profits from the cash cows and spend it on tech ventures instead of dividends.
- qdog 13y ago
  Shareholders don't have voting rights, how can they pressure Google to do anything? I don't know if they should be paying a dividend at the moment, but their stock conveys no power to the stockholder. It's like paying taxes without getting to vote. Their stock price might go up for the next decade for all I know, and it's not like they don't make money or something. I just don't want to invest my money without getting something in return other than the ability to convey my investment to someone else.
  - tanzam75 13y ago
    > Shareholders don't have voting rights, how can they pressure Google to do anything? Shareholders do have voting rights at present. The problem is that Google Class B shares carry 10x the voting rights of Class A shares. Thus, even an overwhelming majority of market cap would still be unable to outvote the insiders. Google is in the process of introducing a nonvoting C share class. This innovation was passed despite a mere 12% support among Google's Class A shares, because the insiders voted all of their Class B shares in favor. From now on, new shares created through stock options will no longer dilute insider control of the company.
    - qdog 13y ago
      Right, my mistake. Not sure why I was thinking they didn't get to vote at all right now, but still, yes owning a share of Class A doesn't entitle you to very much right now.

by qdog 13y ago

vpeters25 13y ago

I think the same and wonder why aren't shareholders pressuring Google to start paying dividends.

jpadkins 13y ago
because goog is a type of tech startup fund. Its a bet that google can identify, acquire, and integrate high quality tech companies and get better returns than any etf or hedge fund can. Some investors want google to take those profits from the cash cows and spend it on tech ventures instead of dividends.
qdog 13y ago
Shareholders don't have voting rights, how can they pressure Google to do anything? I don't know if they should be paying a dividend at the moment, but their stock conveys no power to the stockholder. It's like paying taxes without getting to vote. Their stock price might go up for the next decade for all I know, and it's not like they don't make money or something. I just don't want to invest my money without getting something in return other than the ability to convey my investment to someone else.
- tanzam75 13y ago
  > Shareholders don't have voting rights, how can they pressure Google to do anything? Shareholders do have voting rights at present. The problem is that Google Class B shares carry 10x the voting rights of Class A shares. Thus, even an overwhelming majority of market cap would still be unable to outvote the insiders. Google is in the process of introducing a nonvoting C share class. This innovation was passed despite a mere 12% support among Google's Class A shares, because the insiders voted all of their Class B shares in favor. From now on, new shares created through stock options will no longer dilute insider control of the company.
  - qdog 13y ago
    Right, my mistake. Not sure why I was thinking they didn't get to vote at all right now, but still, yes owning a share of Class A doesn't entitle you to very much right now.