Like you can’t expect everything to be a success and money isn’t infinite. Infinite growth can’t exist, especially for all shareholders around the world. And yet they expect full return on their investment whereas companies should focus on their clients who buy their products and employees who want to help the company and be rewarded but yet the bosses only seen to focus on making shareholders happy. There seems to have been a shift in this mindset somehow over the decades.
It’s naive on my part and it’s more complicated than what I wrote, but I’m curious and I would like to understand. Thank you for your help!
In: Economics
If you took your extrapolation to another arena, why do people compete in the Olympics. Clearly only one person can win a gold medal. So why would 100 people compete in an event? It is completely meaningless by your reasoning.
Few companies survive in the long term. In every industry, there will be winners and losers. No one knows who wins and who loses but every company is expected to do their best. Investors know this. They don’t expect infinite growth but growth can come from taking market share or reducing costs or better economies of scale or better technology. And there is reward for this no matter that it cannot be extrapolated indefinitely.
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