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SLD
Premium
join:2002-04-17
San Francisco, CA

Why?

Why oh why can't these corporations just be satisfied with great profitability? Why is endless growth always the goal - it always results in problems.


Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
kudos:2

said by SLD:

Why oh why can't these corporations just be satisfied with great profitability? Why is endless growth always the goal - it always results in problems.
Because of investors. Investors want a bigger and bigger return.
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ScottMo
Once in a Lifetime
Premium,MVM
join:2000-12-15
Stony Brook, NY

reply to SLD
Because if a company stands pat, its a stationary target. Keep moving, keep growing and the company stays afloat. Get complacent, stagnate, be "satisfied" with your market share and a newer, hungrier, leaner company takes your lunch and you become IBM.



fAcEtIOUs
Premium
join:2002-03-03
kudos:4

reply to SLD

said by SLD:

Why oh why can't these corporations just be satisfied with great profitability? Why is endless growth always the goal - it always results in problems.
Comcast returns only 2.4% thru dividends and stock repurchases to their investors. A truly pathetic return. So Great Profitability isn't there. And they pay 3.4% to their lenders. Again not a great return.

And the growth is needed to increase value of assets and drive the stock price up. Without that stock price increase the investors are only getting 2.4%. Only if the stock price rises will people invest in Comcast and provide the capital needed for infrastructure improvements.
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iansltx

join:2007-02-19
Golden, CO
kudos:2

Correction: acquisitions, not infrastructure improvements. Comcast has plenty of money from its customers for infrastructure.



espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

said by iansltx:

Correction: acquisitions, not infrastructure improvements. Comcast has plenty of money from its customers for infrastructure.
Not to pull off things like Project Cavalry. Showing greater profits improves the stock price, but it also improves the position of companies seeking financing to undertake large infrastructure projects.

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