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by santoshalper 824 days ago
That's... the entire point of a for profit company. Why on earth would they put company money in an index fund? What an absurd idea.
1 comments

Evidently my original comment wasn’t clear enough.

First of all plenty of companies do invest money into equities, bonds, real estate, etc. That’s completely standard and in no way absurd.

I have no problems with companies taking profit, I have a company and I take profit. I would just find it incredibly embarrassing to attempt to convince my customers that me taking profit is for their benefit, and somehow the optimal way for me to increase my reliability as supplier, against the alternative of investing in product improvement.

It’s not that they’re taking profit, it’s that they’re advertising it as if it’s some kind of noble deed they’re performing on behalf of their customers. It absolutely does not remove risk from the company, that’s complete nonsense. The whole post is just strange.