Does it then follow that if JD’s market cap doubles the shareholder will also double their unjust greedy gains to $16?
Fury as one of America’s oldest companies slashes jobs in the Midwest as it shifts work to Mexico: ‘It’s greed’
6/30/2024, 2:34:03 PM · 238 of 239
aspasia to JAKraig
Does it then follow that if JD’s market cap doubles the shareholder will also double their unjust greedy gains to $16?
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I don’t think I would invest $400 to get a return of $16.
I don’t consider myself greedy but would never consider 2% return a worthwhile investment. Yes there is also rising value of the stock but that just helps to keep up with inflation.
Banks are paying up to 5% for CD’s right now, would you consider that greedy. Inflation, as stated by government entities is about 8% but in reality is closer to 20% so at 5% I lose money on a CD because it doesn’t increase in value. I have put some money in rental real estate. An example would be a single family house. Current value about $200000.00 rents for $1200 per month or 14400 per year. First glance would say it is much better than CD because return is about 12%. That is however not realistic since the local government charges me about $1500 per year taxes and Insurance is about the same. Most years there are some expenses for upkeep but we’ll ignore them for now, so about $11,000 a year or about 5-1/2 percent but the value of the house appreciates so it is actually much better than a CD, still way more than John Deere stock.
John Deere is not in business to help farmers grow their crops or to help people in their factories live the good life. Because they make a profit though they can do those things. If John Deere starts making less profit, then their stock value will go down. Sure the employees at the top make good money but if they let the dividends fall much lower than they are now they will get fired. If they can make enough profit to keep the stock owners ahead of inflation then they deserve every penny they get.
I don’t blame them for trying to get a better return on their money.