• sombrero@lemm.ee
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    2 years ago

    the problem with shareholders is that they always and forever need to see a chart that’s in a growing trend. That line is getting kind of stagnant there mate how you gonna please us? What makes this problematic is that there will be a finite number of users for this infinitely growing service, sooner or later growth will have to slow and this does NOT please the shareholder. Where are the gains bro? I was promised gains.

    • gundog48@lemmy.world
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      2 years ago

      Not always, but it is when you go public. I work a lot at small businesses, lots of them have shareholders who are mostly hands-off, or would prefer a more conservative approach to protect their investment.

      People who invest in non-public businesses are usually in for the long haul, and come with much greater risk.

      But when you go public, your business just comes a commodity, nothing but a vehicle for a fund manager to use to try and get a higher return for their clients so they get more business and commission.

      In theory, it’s a really democratic system, but the reality is that we’ve lost track of what an investment is meant to be, and the number of private individuals actually holding shares in a company directly is very low, it’s mostly fund managers who literally just want to pump their numbers for a few years, because long term, they never really beat the market.