RE: Buying Bitcoin As A Company Doesn't Make You Bullet Proof
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Companies that buy significant amounts of bitcoin will make their stock price more volatile. The wild swings in the price of bitcoin will result in wild profits and losses on the quarterly report ... which will make evaluating the company harder for value investors.
As for stock buy backs. While this vehicle can be abused, I think that buy backs are a good way to distribute earnings. I think that companies should have a buy back policy in place to assure liquidity of the stock in the case of a market disruption.
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I’m not against buy backs I just don’t think incentives line up all that well and boards are just milking companies cash flow for increased compensation and not reinvesting to remain competitive
Also what’s wrong with paying a dividend? I guess governments have made it less viable and this is the “logical” move to extract the most money for the least amount of work but eventually run way runs out
Bitcoin may help extend a company a second lifeline but if you’re a shit business that’s run shit you eventually only delaying the inevitable and wasting capital to do that
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