View Single Post
Superman Superman is offline
Senior Member
 
Superman's Avatar
 
Join Date: Mar 2000
Location: Lacey, WA. USA
Posts: 25,312
Any finance professor anywhere can bring you up to speed on this. Investors do not want corporations to behave carefully. Careful behavior is a sign of management putting its personal interests before that of stockholders. Those management people are fired. At the risk of bankruptcy, investors want corporations to reach dangerously for the brass ring. In a diversified portfolio, the companies that reach and secure the brass ring will out number the ones that fall off the horse and perish, and the u7ltimate, net effect of this aggressiveness will be that the portfolio will earn more money than if the companies had behaved more carefully.

No, I cannot cite an instance where a CEO was taken to court by his Board of Directors and sued for malfeasance. Maybe one of our lawyers can. If this is necessary to your discussion, you are missing the point. People (who are citizens and can cast a vote) have consciences. Corporations do not. Corporations cannot. And yet......corporations control our government. Is anybody else uncomfortable with the observation that the entities controlling our government are amoral?
__________________
Man of Carbon Fiber (stronger than steel)

Mocha 1978 911SC. "Coco"
Old 03-13-2007, 03:56 PM
  Pelican Parts Catalog | Tech Articles | Promos & Specials    Reply With Quote #77 (permalink)