Subject: Re: a stocks and dividends question
From: Seth Gordon <>
Date: 12 Jan 2003 11:59:27 -0500

> Why shouldn't a business's objective be to earn a reasonable, stable 
> return for its founders and outside investors (if it has any), year 
> after year, with allowance for market variations?

If the stable rate of return for other investments becomes larger, then
outside investors will be tempted to sell their shares.

Of course, if there are no outside investors, this isn't a problem.  I
wonder what proportion of capital in the US is invested in businesses
that *aren't* publically traded: self-employed people, the software
shops that roblimo mentions, family-run laundries and restaurants, etc.

"Just because the Internet stock phenomenon looks like a bubble, it
isn't a given that the bubble will burst."  --Henry Blodget, January
// seth gordon // // //