Sick of hearing about shareholders. Customers buy products which produce profits to pay shareholders. If you have no customers, there are no profits and then the shareholders are gone. Customers are what a company builds a base on. I could find thousands of companies that have customers but no shareholders. I doubt I can find many companies that have shareholders and no customers. Without a customer base a company is nothing. I understand times change and practices need to also, but the fact of the matter is. It was guys that bought orange tractors long before AGCO existed that AGCO built its initial customer base on. As time went on they were able to add other customers through buyouts and aquistions with profits that were made possible by the initial customer base which happens to love orange tractors.
Fast forward 20 years and AGCO has built this skyscraper of a company. Out of the blue AGCO decides to knock away at the base of the structure by eliminating orange tractors.
Their only hope is that they can fill in that hole in the base with new customers or the whole thing is gonna go over with a bang.
Now I ask. Where were the shareholders in 1990 when AGCO was getting off the ground. Their weren't many to speak of. The company didn't get started with a big IPO. It was built slowly by satisfying customer needs and after the customers were satisfied that left some profits. Profits went to shareholders which more or less get in a bidding war to recieve them. When there are no profits nobody bids up the stock price.
Companies that focus on the investor instead of the customer are not a model for long sustainable buisness.
Note: These are my opinions. Your opinion may vary.
Edited by Nathan (SD) - 11 Feb 2011 at 7:06pm
Topic Options
Post Options
Thanks(0)
