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The Dividend

creepycoug
creepycoug Member Posts: 24,068
edited May 2022 in Tug Tavern
https://www.youtube.com/watch?v=IJXt0GX6QjM

"What's the value of a stock that never returns cash to its shareholders? I really don't know."

Of course there's more context, but this little ditty from Mr. Wonderful is worth a couple of minutes, irregardless of where you come out on growth vs. yield.

Then again, he's only worth $400 million. That's not sarcasm. It's more than I'll ever see, but there are a lot of people around Seattle worth more than that, and most of them got that way with tech & growth.
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Comments

  • DerekJohnson
    DerekJohnson Administrator, Swaye's Wigwam Posts: 68,532 Founders Club
    Watched it and enjoyed it. Learned some things. Got me thinking.
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  • creepycoug
    creepycoug Member Posts: 24,068
    Pitchfork51 said:

    creepycoug said:

    DerekJohnson said:

    Watched it and enjoyed it. Learned some things. Got me thinking.

    If I had to boil it down, it’s this: if you own a stock, you’re either getting paid for your capital or you’re just hoping for something to happen. There’s nothing else.
    My issue with growth stocks is that the top management is only focused on stock price versus sustainable profitability

    Obviously that's a broad brush but it's a thing.

    Fun story that's somewhat relevant

    Last December my ceo started chatting with a dude and decided we were gonna drop ship a shitload to all their customers.

    Well the dude already owed us like 80k that we were never gonna recover but since the owners were in talks to sell he didn't care just wanted to bump the revenue before the end of the year.

    Well shocker the deal fell through and covid hit then the ownership decided why screw around this is a super profitable business.

    That shady fuck is going to jail for medicare scams and we had to pick up a 300k bill (and sue for it and whatnot but we're gonna get nothing)

    Now he's all about building the company and long term and whatnot. But every time he does something dumb I'm like bro are we going down that route again?

    Its understandable why people do it. A payday is a nice prize.


    Edit: this isn't super clear. The shady asshole is the customer that was doing medicare scams not my boss. My boss and the other two owners were the ones in the selling talks that wanted to pump revenue to up the purchase price.

    Still the craziest decision ever.
    No, I got it. It's actually a perfect example of a growth company mind-set. Mature companies behave differently. When they are mature, they shouldn't be sitting on piles of cash. Hell, Microsoft and Cisco pay a dividend now. Unheard of not that very long ago.
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  • Pitchfork51
    Pitchfork51 Member Posts: 27,662
    creepycoug said:

    Pitchfork51 said:

    creepycoug said:

    DerekJohnson said:

    Watched it and enjoyed it. Learned some things. Got me thinking.

    If I had to boil it down, it’s this: if you own a stock, you’re either getting paid for your capital or you’re just hoping for something to happen. There’s nothing else.
    My issue with growth stocks is that the top management is only focused on stock price versus sustainable profitability

    Obviously that's a broad brush but it's a thing.

    Fun story that's somewhat relevant

    Last December my ceo started chatting with a dude and decided we were gonna drop ship a shitload to all their customers.

    Well the dude already owed us like 80k that we were never gonna recover but since the owners were in talks to sell he didn't care just wanted to bump the revenue before the end of the year.

    Well shocker the deal fell through and covid hit then the ownership decided why screw around this is a super profitable business.

    That shady fuck is going to jail for medicare scams and we had to pick up a 300k bill (and sue for it and whatnot but we're gonna get nothing)

    Now he's all about building the company and long term and whatnot. But every time he does something dumb I'm like bro are we going down that route again?

    Its understandable why people do it. A payday is a nice prize.


    Edit: this isn't super clear. The shady asshole is the customer that was doing medicare scams not my boss. My boss and the other two owners were the ones in the selling talks that wanted to pump revenue to up the purchase price.

    Still the craziest decision ever.
    No, I got it. It's actually a perfect example of a growth company mind-set. Mature companies behave differently. When they are mature, they shouldn't be sitting on piles of cash. Hell, Microsoft and Cisco pay a dividend now. Unheard of not that very long ago.
    So we were having our weekly meeting..


    Lol he was like hey wanna come down to phoenix for the waste management?

    And I was like you remember when you fucked my new years over a year ago with that fraudulent dickhead?

    He's like uhh yeah....

    I said his goofy medical billing business partner is trying to talk to me again. So you owe me booze.
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  • Pitchfork51
    Pitchfork51 Member Posts: 27,662
    But yeah long story creep but it's super obvious how long term companies play things.
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  • PurpleThrobber
    PurpleThrobber Member Posts: 48,126 Standard Supporter
    edited January 2021
    Pitchfork51 said:

    creepycoug said:

    Pitchfork51 said:

    creepycoug said:

    DerekJohnson said:

    Watched it and enjoyed it. Learned some things. Got me thinking.

    If I had to boil it down, it’s this: if you own a stock, you’re either getting paid for your capital or you’re just hoping for something to happen. There’s nothing else.
    My issue with growth stocks is that the top management is only focused on stock price versus sustainable profitability

    Obviously that's a broad brush but it's a thing.

    Fun story that's somewhat relevant

    Last December my ceo started chatting with a dude and decided we were gonna drop ship a shitload to all their customers.

    Well the dude already owed us like 80k that we were never gonna recover but since the owners were in talks to sell he didn't care just wanted to bump the revenue before the end of the year.

    Well shocker the deal fell through and covid hit then the ownership decided why screw around this is a super profitable business.

    That shady fuck is going to jail for medicare scams and we had to pick up a 300k bill (and sue for it and whatnot but we're gonna get nothing)

    Now he's all about building the company and long term and whatnot. But every time he does something dumb I'm like bro are we going down that route again?

    Its understandable why people do it. A payday is a nice prize.


    Edit: this isn't super clear. The shady asshole is the customer that was doing medicare scams not my boss. My boss and the other two owners were the ones in the selling talks that wanted to pump revenue to up the purchase price.

    Still the craziest decision ever.
    No, I got it. It's actually a perfect example of a growth company mind-set. Mature companies behave differently. When they are mature, they shouldn't be sitting on piles of cash. Hell, Microsoft and Cisco pay a dividend now. Unheard of not that very long ago.
    So we were having our weekly meeting..


    Lol he was like hey wanna come down to phoenix for the waste management?

    And I was like you remember when you fucked my new years over a year ago with that fraudulent dickhead?

    He's like uhh yeah....

    I said his goofy medical billing business partner is trying to talk to me again. So you owe me booze.
    It's kinda crazy how many scammers are in the Phoenix area. Have personally been involved in a two deals over the past couple years where the other side ultimately proved out to be total shysters.

    They're everywhere but between PHX and Florida, it's pretty obvious the frauds like the warm weather.

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