Quote:
Originally Posted by Moneyseeker
One thing that will emerge from Covid-19 is how ludicrously over leveraged some firms are. I generalising now, but IMO there has been to much focus on shareholder returns over cash building which means great returns for shareholders but weak resilience for the business.
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I'm sure others can correct me on this, but I have long (mis?) understood the role of a director of a company in which the public have shares is to protect shareholder value above all else - in UK law, at least. This drives the companies towards dividends and bonus culture rather than storing cash, which ultimately weakens them in moments of stress.
(Apple notwithstanding, of course)