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Originally Posted by Cynthetiq
Globalization is the problem, but so is the desire for record profits every quarter. It's unsustainable. There has to be blue chip type growth that is slow and steady. But we pay the CEOs these sums because we want the record growth to be there.
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A common trend, especially in the resource sector, is to build a company from the ground up, only to sell it off to a blue-chip once it's achieved "record profits." Some of the stock on these companies go from something like $4 to $32. Others have seen larger growth. Once the blue-chips are confident that the resource company has confirmed material stocks, they buy them up and absorb them into the company. I would guess that much of this activity contributes to the "record profits" of corporations....smaller corporations making tons of money as a percentage of growth before being bought out. You see the same thing in tech too.
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People need to make the decision on their own. As a shareholder, I expect a fair return for my investment. If I don't, I move my investment dollars elsewhere.
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I agree. I'd sooner want action from the "foreign lands," international lawmakers, and domestic tax legislators than I would from the corporations that make these sorts of decisions. These decisions make good business sense. I can't blame them for that.