You seem to be making a bunch of somewhat odd assumptions? Eg that investors are idiots, and that it's easy to beat the market?
I was answering the hypothetical example of one company having this magic button. With the rest of the world operating as normal.
If you want to figure out the optimal approach to many companies having such magic buttons, that's a slightly different question.
You are right that creating companies isn't easy nor trivial. That's why the market so richly rewards creating successful companies from scratch. But that's nothing that a well-diversified investor needs to worry about for this particular decision. You just look at market prices.
> The thing is, the people who own these companies also happen to live in a word powered by the products they produce. If you kill a bunch of golden geese in pursuit of profits, they will see bigger numbers in their broker accounts, but it’ll be because everything we all use has become scarcer and more expensive.
> Sure, the owners will look richer - at least in comparison to everyone else. But would you rather be rich in a world of scarcity? Or middle class in a world of abundance?
You seem to assume zero competition? And also that the stock market is really bad at evaluating business decisions (at least worse than you)? If the latter is the case, you should become an investor and make a killing!
Especially if you are living in a world where everyone else is stupidly slaughtering their golden geese, you should be able to pick up some disgruntled ex-employees for cheap and just run a steady ship!
Another important consideration: at some level of abstraction a company is just a legal shell. 'Killing' a company might just mean that the old equity (another legal abstraction) is deleted, and the former creditors turn into equity holders. The operations don't even need to be affected by this at all. Of course, you can also 'kill' a company by shutting it down. But again, that doesn't necessarily remove any of the demand for its (type of) products, nor does it remove the experience of the people working there, nor does it break any of the machinery and hardware.
So if Adobe goes belly up, there are already plenty of other companies willing to fill their former niche.
I was answering the hypothetical example of one company having this magic button. With the rest of the world operating as normal.
If you want to figure out the optimal approach to many companies having such magic buttons, that's a slightly different question.
You are right that creating companies isn't easy nor trivial. That's why the market so richly rewards creating successful companies from scratch. But that's nothing that a well-diversified investor needs to worry about for this particular decision. You just look at market prices.
> The thing is, the people who own these companies also happen to live in a word powered by the products they produce. If you kill a bunch of golden geese in pursuit of profits, they will see bigger numbers in their broker accounts, but it’ll be because everything we all use has become scarcer and more expensive.
> Sure, the owners will look richer - at least in comparison to everyone else. But would you rather be rich in a world of scarcity? Or middle class in a world of abundance?
You seem to assume zero competition? And also that the stock market is really bad at evaluating business decisions (at least worse than you)? If the latter is the case, you should become an investor and make a killing!
Especially if you are living in a world where everyone else is stupidly slaughtering their golden geese, you should be able to pick up some disgruntled ex-employees for cheap and just run a steady ship!
Another important consideration: at some level of abstraction a company is just a legal shell. 'Killing' a company might just mean that the old equity (another legal abstraction) is deleted, and the former creditors turn into equity holders. The operations don't even need to be affected by this at all. Of course, you can also 'kill' a company by shutting it down. But again, that doesn't necessarily remove any of the demand for its (type of) products, nor does it remove the experience of the people working there, nor does it break any of the machinery and hardware.
So if Adobe goes belly up, there are already plenty of other companies willing to fill their former niche.