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To: ModernDayCato
As a company your first responsibility is to make money for your shareholders.

No. It is not.

Or rather you need to decide who you are going to make money for, the people who buy and hold or the people who are looking to make a quick buck by buying your stock and sell it in five minutes.

This is where many publicly held companies flounder and fail.

Your first responsibility is to keep the company in business.

Sometimes that means taking a short term hit for a long term benefit.

It means not selling off assets that are cash cows for a one time bump in profits.

It means keeping R&D going and remembering who your customers are and not ticking them off to get back pats from people who would not be caught dead using your product.

It means remembering that institutional knowledge is a priceless asset. Not just looking at what that person makes and deciding you can hire some wet behind the ears kid to do that job for half the cost. And then having to hire some very pricey specialist to fix the process your cheap labor broke.

And it means grooming your successor to thrive rather then setting him up to fail just so you look good by comparison.

You learn these things when you work for large but privately held companies that are growing while the large publicly held companies are nose diving.

Your shareholders who "buy and hold" will be glad of your actions while the short term buyers will be whining and kicking.

61 posted on 01/12/2020 3:09:46 PM PST by Harmless Teddy Bear (A hero is a hero no matter what medal they give him. Likewise a schmuck is still a schmuck.)
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To: Harmless Teddy Bear

Good observations, HTB.


62 posted on 01/12/2020 3:21:32 PM PST by Tax-chick ("The diversity cult is destroying the very foundations of our civilization." ~ Heather MacDonald)
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To: Harmless Teddy Bear
Uh. I guess.

But after that word salad, you're basically saying that either way you're operating for the benefit of the shareholders, and as part of the corporate strategy you need to decide the strategy that adds the most value for those shareholders.

The shareholders always have the option of selling if they don't like the strategy.
79 posted on 01/14/2020 7:32:39 AM PST by ModernDayCato
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