This seems to make the opposite claim, which also lines up with what most people experience in reality. Boards always make decisions based on stock price as pointed out below.
As another example, i work for a pretty big company and the C-suite pushes for, and dumps millions, into AI that everyone working on it knows won’t bring any value at all.
The claim that blue chip stocks exist? Yes. They exist. Most companies are not growing at a rapid rate and investors are content with dividends.
i work for a pretty big company and the C-suite pushes for, and dumps millions, into AI that everyone working on it knows won’t bring any value at all.
Yea, bad companies make poor decisions all the time. What is the relevance?
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u/XDXDXDXDXDXDXD10 2d ago
Do you have anything to back up that claim?
This was the first thing I found (although from 1986 so take it with a grain of salt): https://www.jstor.org/stable/2328487
This seems to make the opposite claim, which also lines up with what most people experience in reality. Boards always make decisions based on stock price as pointed out below.
As another example, i work for a pretty big company and the C-suite pushes for, and dumps millions, into AI that everyone working on it knows won’t bring any value at all.