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View Diary: How much profit is enough? Holding companies rant. (61 comments)

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  •  Even if you increase every year (3+ / 0-)
    Recommended by:
    opinionated, bnasley, Toon

    all they see when you meet any goal is that they obviously set the goal too low.  

    No matter that everyone had to bust their butts and work unpaid overtime to reach that goal, or that workplace injuries increased because of exhaustion and rushing, just "we think we can squeeze some more profit out of this for the executives' bonuses and shareholders profits"

    Atheism is a religion like Abstinence is a sexual position. - Bill Maher, 2/3/2012

    by sleipner on Wed Feb 29, 2012 at 12:45:41 PM PST

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    •  Do you even know what a holding company is? (0+ / 0-)

      Actually, it looks like neither the author nor anyone commenting here even knows what a holding company is.

      It just sounds vaguely Wall Streetish and sophisticated so it's got to be bad!

      How about adding some actual knowledge to this discussion!

      http://en.wikipedia.org/...

      A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.
      So, really pretty simple.

      What does it mean?  Well, many things.

      Berkshire Hathaway is a holding company - you know how Warren Buffett keeps buying stock in companies like IBM, etc, right?  And he does it with Berkshire Hathaway.

      Most foreign investments in China are done through Hong Kong holding companies to benefit from China's preferential treatment of Hong Kong investment.

      When a company buys another company it may choose not to merge the two companies but to keep both as legal entities for tax or a variety of legal reasons.  In that case you usually end up with some kind of holding company.

      Of course there is absolutely no reason why a business that organizes itself as a holding company owning multiple companies would be any better or worse than a business that organizes itself as a single company owning the same assets.

      In short, the basic premise of this diary is ignorant pap.

      •  ignorant pap. (0+ / 0-)

        wham bam,

        I don't know you, and you obviously don't know me or where I come from in my commentary.

        I make things.

        I in fact make things that you might use every day. I have made things that you may have used everyday for the last 30 years. If you didn't use those things I made, it's of no matter, because literally millions of consumers did, and continue to do so to this day.

        I started out my career working for companies that made things, and took pride in that accomplishment. They paid their employees well, treated them fairly, and as an added bonus, gave them a pension.

        Then, something called a holding company bought one of my plants. Remember, I'm ignorant. I had no idea what a holding company was. I did, however learn, that while they owned my company, there would be no fair pay scale, it had to be lowered to improve the bottom line.

        Ohh, pensions, that was a thing of the past. There was this new wonderkund thing called a 401K. It took the contributions you made from your "INCOME" and invested it in companies it chose. How could that be anything but a win-win situation?

        The bottom line is here:
        I do not understand the nuances of high finance, but I can detect when the vultures move in to shred the meat from the bones of the prey.

        Every holding company that took ownership of a once family owned business that I have worked for have decimated the value of that facility, while reaping great financial rewards in the process. Leaving all those who made the business what it was in the first place find themselves poorer for the effort.

        You , Wham Bam, are full of ignorant pap. and I doubt you have ever "made" anything but a profit.

        Millrat

        My wife and I served in the Cold War. It seems our efforts were fruitless. We have a new enemy, and if not, we will create a new one.

        by Millrat on Tue Mar 06, 2012 at 05:10:31 PM PST

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