Comment by saghm

I've always found it pretty weird how common the idea is that companies _need_ to keep growing indefinitely, regardless of the size they've reach. If a company is sustainably making a profit (i.e. makes more money than it needs to spend to keep running) and will continue to for the foreseeable future, why do they need to grow their revenue even higher? It seems like the expectation is they need to do this so that the stock price can go up, but if people only buy the stock to sell it when it's worth more due to being larger, what's the actual connection between the stock price and the amount of money the company makes other than everyone just agreeing to pretend there's one? Ostensibly the reason stock is worth anything at all is that it could eventually yield dividends, but there's no reason that a company already making a profit can't just start paying dividends regularly without needing to ever grow any larger.