Friday, April 25, 2014

Gimme cash now.

Here is a wonderful piece on the pitfalls of shareholder activism.  In a new world vision, corporations exist to funnel cash to shareholders, not to make things.  I doubt this movement toward the financialization of everything will last beyond the next economic crash.

Disgorge the Cash – The New Inquiry


  1. I agree. It seems more like a drive to create "fairness" to shareholders. I understand that but if cash was what you wanted, why give to companies whose sole purpose is to create goods?

    This could represent a change in the average shareholder. With the number of shareholders who want dividends, policy could change but I do not have much hope for that. For now, this is up to companies what they want to do.

  2. It seems as if shareholders no longer believe in the companies they hold stocks for. You should invest in a company, because you believe they are making a valuable product that will return dividends. Not that dividends will be payed through strange compensation methods.