Key insights
- The article discusses the implications of declining profitability for public companies, particularly in the retail and grocery sectors, and questions why shareholders don't intervene more actively to ensure company survival. This highlights concerns about market concentration and diminishing returns, potentially leading to decreased investor confidence in specific sectors.
Public companies are always chasing profits, we know this. It's not always possible to be profitable, however. So when there profits dry up, is it an automatic death sentence? Or how does it work?
What brought this to my mind is seeing how many retailers and grocery stores have disappeared and how little variety and competition there now is in the US' "free market". When household names vanish, diminishing ROI for shareholders seems to always be the reason why.
If shareholders are so vested in the profitability of companies, why do they not do more to ensure their survival and continued prosperity?
I understand if these are stupid questions and I'll get lost if you tell me to...