> “the raison d'etre for publicly traded companies existing is not to simply exist, but rather make profit and ideally continually expanding profit for share holders”
Should be noted the ideology that the purpose of a corporation is to maximize the profits for shareholder above all else is a modern obsession, and always takes a short term view. Starving a company just for a few good years of share prices is is dumb but often what that ideology leads to. Making profit is part or what a corporation should do, maximizing it above all else is not.
Similarly HOAs are supposed to maximize house value but funny how some of the highest property values are places like Palo Alto that aren’t known for HOAs.
The goal is to maximize shareholder value, which is not the same as maximizing short term profits.
Amazon famously did not turn a profit for years as its stock price rose. It was able to do so because the market largely trusted the management.
The reason why the stock market demands profit from most companies is that many, many managers and directors are bad at their job. Demanding profits is a way to keep management disciplined and focused, and avoiding years long boondoggles and fiascos. This is important since they are playing with other peoples money.
Should be noted the ideology that the purpose of a corporation is to maximize the profits for shareholder above all else is a modern obsession, and always takes a short term view. Starving a company just for a few good years of share prices is is dumb but often what that ideology leads to. Making profit is part or what a corporation should do, maximizing it above all else is not.
Similarly HOAs are supposed to maximize house value but funny how some of the highest property values are places like Palo Alto that aren’t known for HOAs.