Reply to post: Re: Far to late

UK's competition regulator fires red flare over Nvidia's $40bn Arm takeover deal

Doctor Syntax Silver badge

Re: Far to late

"if the government might intervene when it comes time to try and get your money out, by selling an asset."

Inadvertently you've put your finger on the problem. It's investors wanting to come in and make a big capital killing. If all investors think like that why should anyone want to buy the company to get their money out? The only ways to keep playing that game is the pyramid scheme - you borrow more money, load the company up with debt and sell on to someone who'll do the same and hope that you're not the one left holding it when the debt burden makes it collapse or, alternatively, strip the assets.

The only thing that makes it worth buying successfully is take ongoing income from trading profits - but in that case the sort of investment a government should encourage is one that creates the business to do just that in the first place. It may well be that that's what they actually do want to encourage. It generates employment - always something that helps get them re-elected. It contributes to GDP. It contributes to tax income. It's just that over the years governments of all colours have just let anything worthwhile be bought out, stripped and closed down.

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