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by dzink 625 days ago
This reads like it was written by generative AI. Private equity is often the vulture a company is sold to when the founders can’t take it public or find a symbiotic merger first. In a traditional LBO it loads the company with debt, based on a steady stream of cash flows. The cash flows are key. It’s akin to having a wild stallion which grew up fast and beautiful and then putting a saddle on its back and an ore behind it. In public companies that looks like going from a growth stock to a dividend stock to a high dividend stock that people only buy for tax purposes because the dividend is less than the devaluation in stock price over time. You can look at the financial statements of companies or the details in any stock app and you can see where they are at in this maturation curve. Then invest your time and money accordingly.