Comment on Why do companies always need to grow?

UndercoverUlrikHD@programming.dev ⁨2⁩ ⁨days⁩ ago

Assume you’re saving X amount of money each month for your retirement.

Your options for storing that money is either:

  1. In cash which will “lessen” in value as time goes by due to inflation
  2. In a savings account with middling interest rate
  3. Or you could invest in the stock market which will typically offer better return.

Assuming you go for option 3, would you choose to invest in a company with zero growth meaning your retirement fund won’t grow, or would you choose a company that is constantly growing?

Nobody would choose to invest in a company with zero growth or which doesn’t return money back in the form of dividends.

You’re objectively better off investing in companies that grow since those are the companies that will grow your investment.

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