The thing about privately-held companies with not intention to go publoc is that the long-term viability of the company is more important than ever-increasing share value.
A public company can be the most profitable company in the world but still lose stock value if it isn’t more profitable than last quarter.
They can also chase growth and the appearance of a company that could or will make money one day. Ex Uber when it first came out and destroyed the taxi industry practically overnight.
A shareholder in a private company that’s profitable well isn’t losing money on the investment. A shareholder in a profitable publicly-held company might be losing money depending on when they bought in.
Additionally, the shareholders in the private company have to consider the future because they can’t dump their shares as easily. That promotes sustainable business practices instead of chasing short-term gains at the cost of long-term viability.
The thing about privately-held companies with not intention to go publoc is that the long-term viability of the company is more important than ever-increasing share value.
A public company can be the most profitable company in the world but still lose stock value if it isn’t more profitable than last quarter.
Can still be more profitable than last quarter, but less profitable than expected. Lost value.
But companies don’t always chase profit.
They can also chase growth and the appearance of a company that could or will make money one day. Ex Uber when it first came out and destroyed the taxi industry practically overnight.
Yes, but they chase it in different ways.
A shareholder in a private company that’s profitable well isn’t losing money on the investment. A shareholder in a profitable publicly-held company might be losing money depending on when they bought in.
Additionally, the shareholders in the private company have to consider the future because they can’t dump their shares as easily. That promotes sustainable business practices instead of chasing short-term gains at the cost of long-term viability.