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Comment on Why do companies always need to grow?

This mostly only happens to companies with outside investors, and it’s in order to make the investors happy.

Companies owned privately by one or a handful of people who all just want the company to keep going, make a decent profit, and be sustainable, don’t always exhibit the “need for growth” behavior.

It’s usually because the investors don’t really give a shit about the company or its mission, they just want money.

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dontsayaword@piefed.social ⁨1⁩ ⁨day⁩ ago
This includes all publically traded companies

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QuarterSwede@lemmy.world ⁨1⁩ ⁨day⁩ ago
Bingo.

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Munkisquisher@lemmy.nz ⁨23⁩ ⁨hours⁩ ago
There are also stable companies with a solid revenue stream that don’t have much growth potential, so pay out the profits as dividends. These are more in demand for retirement funds or individuals who get to point in life they need to start living from their investments. Yield is always a calculation of dividend + growth.

Tech companies that don’t pay a dividend and reinvest everything into growth is a relatively new concept

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DreamlandLividity@lemmy.world ⁨1⁩ ⁨day⁩ ago
Well, partially maybe. In the past, investors were happy with dividends instead of growth. There are extra factors making growth be preferable over dividends.

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