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pirac t1_ja7qw63 wrote

Whats the incentive for companies like this to exist in todays capitalist world?

Thats a very low return of investment compared to other safe investments.

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ferrel_hadley t1_ja7u4qm wrote

You buy the shares, you get a cut of the steady flow of revenue. To maintain the productive capacity the share price retains value and gives returns, so you have an asset you can monetise for its underlying value by selling or maintain a revenue stream from it.

This is how most companies operate. A few like Apple have insane returns, but they have an insane share price. Most of the investor value is locked into share price.

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