Comment

Comment by morganslaw

I think financialization is something you do in the later stages of a company's lifecycle. It is how you extract the most value out of the company as money, rather than potential.

I think companies have pretty clear life cycles. First they start, they grow, then the plateau, and then fall. Sometimes you may get a few bumps in the road, but generally this is the long-term cycle.

Financialization makes the most sense to engage when when you are plateaued and possibly falling. You can still extract value.

I think that the fall of Sears was a great example of the financialization and extraction of value of a dying company.

Financialization is trading off future potential growth or even long-term staying power for $$$.

parent morganslaw 4 years ago

Discussion

Live from the official Hacker News API

A modern reader for Hacker News · SvelteKit + Skeleton