Nice article 👌A quality feature is actually when you operate shareholder value through share buybacks and/or dividends, because you have this competitive advantage and investments are not necessary. Why should Coca Cola, for example, invest heavily. You have to find these companies. Ideally in the early phase. This is what gives them their competitive advantage. Of course, the payout ratio should always be within limits and below FCF or profit. But you always have to distinguish between value stocks, which are no longer in their growth phase, and growth. Or to be even more precise, the distinction between the growth phases according to Peter Lynch.
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•@TheAccountant89 Shareholder value is of course a good thing, but not at any price. And by that I don't mean that dividends are paid only on profits actually generated. I'm thinking in particular of a major carmaker that wanted to pay record dividends during the corona pandemic, but didn't want to pay a bonus to its employees, some of whom were on short-time working.
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•@FirstPancake Of course, this all has to be considered on a case-by-case basis. Basically, I would simply like to say that I would not invest if the company does not act in an investor-friendly manner. And said points are just points for it. You always have to look more closely at the individual case.
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