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by wageslaving
3271 days ago
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The issue with yielding to investors is that investors are primarily interested in making money for themselves, rather than growing the companies they are investing in. An investor will always vote to have large companies take loans in order to purchase the hundreds of millions of dollars worth shares they just purchased back a 25% increase over their current market value, or get a lump sum in the form of the newly issued dividends as it was in Apple's case. And then they take the money they made, reinvest in another large company they can leverage and do it again. There's absolutely no reason to seek growth based returns which carry risk while this approach is available. Dividends and stock-buybacks represent a no-value-created system of incentives for the richest people in the world, directly extracting the surplus value of laborers at the expense of workers and long-term investors. Only when a company starts to topple does there seem to be any interest in moving into new markets or improving their existing lines of business. |
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