vnatale wrote: ↑Wed Dec 25, 2019 8:21 pm
From a footnote in: The Overtaxed Investor: Slash Your Tax Bill & Be a Tax Alpha Dog
"Let it be remembered that one reason value stocks perform better than growth stocks over time (at least pre-tax) is because management on average destroys capital with its far-flung investment schemes."
Vinny
there are stupid things done whether growth or value or dividends or not .
we hear the same silly things about dividend payers not wasting money .
case in point .
AT&T paid $100 billion to enter the cable business
AT&T thought it would be a good idea to diversify by paying $100 billion to take on cable company TCI. It was wrong! AT&T broke itself up a few years later and sold off the cable assets.
AT&T tried to elbow its way into the personal computer business with a hostile $7 billion takeover of NCR. It didn't work, and AT&T later spun the company back out at a $4 billion valuation.
Microsoft paid an estimated $500 million for mobile phone company Danger. It was supposed to be working on new phones for Microsoft, but most of the key employees left the company. The end result of the acquisition was the Kin, a social smartphone from Microsoft that totally bombed.
Cisco probably bought Pure Digital, the company that makes the Flip, right at the peak of its value in 2009. Since then high definition video cameras have been built into just about every smartphone making the Flip pretty much worthless in the long run. Which is probably why Cisco killed the $590 million acquisition earlier this year.
After Google bought DoubleClick, Microsoft tried to keep up by buying ad company aQuantive for $6 billion. The acquisition never really worked out. The aQuantive executives left two years after the deal closed and the technology was discarded.
..
AOL-Time Warner is obviously the worst
i can go on and on