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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RE: Ah !
by Yamin on Fri 13th May 2011 12:06 UTC 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

RE[3]: Ah !
by Yamin on Fri 13th May 2011 17:48 in reply to "RE[2]: Ah !"
Yamin Member since:
2006-01-10

No the essence of that game is that each institution (company) will always need to prove itself by showing it is serving its customers.

It is a 'good' thing that companies fail and collapse.
It means they are not serving their customers and their failure means someone else can come in and do that job.

This is far better than other systems which try and reform institutions as the self-interest and competence of those in the institution are always a barrier.


If Microsoft falls, it is a good thing.
If it reforms and does well, it is a good thing.

It it doesn't reform and is protected by government somehow, then it is not a good thing.

Reply Parent Score: 2