Welcome to Dr Lincoln's blog

Welcome for visiting my blog. Hope you enjoy the visit and always welcome back again. Have a nice day!

2010-06-04

No super profits for current shareholders of public companies

Second comments on Henry Ergas “Going retro with cash grab”, 4/06/2010, http://www.theaustralian.com.au/news/opinion/going-retro-with-cash-grab/story-e6frg6zo-1225875235219


The super profit assumption, premise or thesis is based on pure fantasy in the environment of modern public mining companies.

The public nature of most mining companies and stock market trading means there are no super profits for any publically traded companies.

This is totally different from a private company where the original investments are still there and enjoy either lower or higher than normal profits.

But large mining operations are mostly public companies and the current shareholders don't have those sorts of returns related to private companies.

It is that simple and it is a puzzle why Treasury people could not figure that fact and logic out.

No comments:

Post a Comment