Re:The Shareholder Value Myth (2013)
by bobthepanda on Sunday July 15, 2018 @03:28AM
(#17534186)
The problem is that companies that just chugged along and paid a dividend have basically died out in favor of companies that borrow against their long term profits for not a lot of upside other than short-term boosts in share price. A lot of recent failures and bankruptcies can be attributed to this phenomenon.
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> A lot of recent failures and bankruptcies can be attributed to this phenomenon.
Do you mind sharing some examples of said bankruptcies?
Re:The Shareholder Value Myth (2013)
by bobthepanda on Monday July 16, 2018 @01:48AM
(#17539035)
Source: https://wolfstreet.com/2018/01/22/the-private-equity-firms-a...
Toys R Us, Vitamin World, Gymboree, Payless, Aeropostale, Limited, Claire, Pacific Sunwear, Sports Authority, and Wet Seal were all fairly common chains in America. And this is just the examples in retail.
Thank you!
Re:The Shareholder Value Myth (2013)
by skookumchuck on Sunday July 15, 2018 @03:48AM
(#17534248)
To protect yourself against that, only invest in companies that have been around for years.
Re:The Shareholder Value Myth (2013)
by bobthepanda on Monday July 16, 2018 @04:46PM
(#17544929)
It only takes one bridge loan from a PE firm to get yourself in this hole. Neiman Marcus was founded 110 years ago as a traditional department store and is now finding itself in this mess.