From: gts (gts@optexinc.com)
Date: Fri Sep 13 2002 - 11:32:49 MDT
Lee Crocker wrote:
> ...and that was basically how I saw the original question. Using
> your terms, the question was "what's the utility of stock"?
> And the answer is dividends. I think we're mostly talking past
> each other here.
Using my terms, (actually the terms of economics), stocks have no
utility value whatsoever. This is not however to say that they have no
value whatsoever. Utility value is only one type of value.
> BTW, I am sympathetic to your contention that growth will
> indeed work forever..
Okay. I'll take sympathy where I can't get agreement. :-)
> ... but I still think that it's overly
> speculative to actually have that as a long-term business plan.
> Call me old fashioned.
That belief would not make you old-fashioned. It would make you out of
touch with the business world.
Most every CEO of every major corporation has a long-term business plan
in which the company is seen to grow indefinitely into the distant
future at the same or greater pace than the US or world economy. CEO's
are sometimes reluctant, for immediate circumstantial business reasons,
to estimate positive *short term* growth. But the capacity to envision
and plan for long-term growth in the face of short term difficulties is
part of what makes them CEO's rather than janitors.
Remember that corporations have one very unique and important property
not shared by individuals: corporations are legally capable of living
forever. A good CEO is mindful of this fact and plans accordingly.
-gts
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