Linked by David Adams on Fri 13th May 2011 04:54 UTC
Microsoft In business school the first thing they teach you about CEOs is: it is the CEO’s job to increase the shareholder value of the company. Since taking the position Ballmer has decreased shareholder value, as reflected by stock price, by -56.63%. That. Is. Not. Good . . . Microsoft should be searching for a new CEO right now.
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Ah !
by TBPrince on Fri 13th May 2011 09:27 UTC
TBPrince
Member since:
2005-07-06

What they don't teach in CEO schools (because it's an untold lesson) is that Capitalism, at one point, needs to disrupt value to be able to create more value. That makes Capitalism an inferior production system but a few key figures can make profits out of disruption as well.

Shares value could not raise indefinitely, as it is obvious. If Apple shares weren't valued as toilet paper in mid 90s, Apple couldn't have grown the way it did. And, at one point, Apple shares must collapse to start over again.

The same way, Microsoft had more than 15 years of growing which reflected on shares value. Now shares collapsed and that game can start again.

The blame-CEO game is a handy explanation to justify something which is more than natural, not because CEOs but because current production system.

If I say: Apple and Google shares will collapse sooner or later, that would be a sure bet.

Reply Score: 4

RE: Ah !
by Yamin on Fri 13th May 2011 12:06 in reply to "Ah !"
Yamin Member since:
2006-01-10

"If I say: Apple and Google shares will collapse sooner or later, that would be a sure bet."

I'm pretty sure creative destruction is at the core of capitalism. It's all the other systems that claim you can have stable institutions and businesses that never fail.

The essence of capitalism is dealing with failure.


That all said, most of the established tech companies should be boring old dividend paying stocks like Coco-Cola. They've established their market. They largely don't because of ridiculous tax laws that tax dividends higher and corporate taxes that discourage bringing the money back.

Reply Parent Score: 3

RE[2]: Ah !
by TBPrince on Fri 13th May 2011 13:09 in reply to "RE: Ah !"
TBPrince Member since:
2005-07-06

"creative distruction"... that's rather optimistic. ;-)

The essence of that game is burning debt. You make debts, you use debt to get actual wealth, you transfer actual wealth to you via proxy, you don't pay debt and promise your creditors you won't do that again (never ever !) and start over.

That's the essence of it ;-) And that works if you can steal from poor people while will turn into bloodshed if you rob your sibiling.

And about taxes, come on! ;-) Such companies don't pay taxes at all and when they are required to do that, they file for bankruptcy ;-)

Reply Parent Score: 3