I wrote about this concept very recently. US corporations no longer have to appeal to the customer to create shareholder value. Buybacks and non-operating revenue from financial instruments are the preferred methods for appreciating stock value. It doesn’t matter what they make if their balance sheet is flooded with inflated assets.
Interesting article. The obvious question is, when corporations add a volitile asset to the balance sheet like BTC or SOL what happens to the stock price when those assets go into a bear market, sometimes into a multi year bear market, especially assuming the price paid for the asset is higher than the market value of the asset? At that point the stock price of the corporation may well reflect the underlying asset on the balance sheet and also go bearish.
very interesting article. Thankyou.
I wrote about this concept very recently. US corporations no longer have to appeal to the customer to create shareholder value. Buybacks and non-operating revenue from financial instruments are the preferred methods for appreciating stock value. It doesn’t matter what they make if their balance sheet is flooded with inflated assets.
https://open.substack.com/pub/dehartmedia/p/unplanned-obsolescence?r=jpnkq&utm_medium=ios
Interesting article. The obvious question is, when corporations add a volitile asset to the balance sheet like BTC or SOL what happens to the stock price when those assets go into a bear market, sometimes into a multi year bear market, especially assuming the price paid for the asset is higher than the market value of the asset? At that point the stock price of the corporation may well reflect the underlying asset on the balance sheet and also go bearish.