Robin Hanson <rhanson@gmu.edu> Wrote:
>Putting "profits back into the company" doesn't help
>stockholders unless it results eventually in more
>"dividends" (broadly construed).
True, but under the right conditions "eventually" can be postponed
indefinitely. As long as a company's profits are increasing by 30%
a year the price of the stock will not suffer even if it pays no dividends
because stockholders figure, quite correctly, that the company can use
the money more wisely than they can. Those who disagree can always
sell, but in the real world few do.
John K Clark jonkc@att.net
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