←back to thread

The feds are coming for John Deere over the right to repair

(gizmodo.com)
568 points rntn | 1 comments | 18 Oct 24 16:32 UTC | HN request time: 0.198s | source
Show context
chasil ◴[18 Oct 24 17:39 UTC] No.41881693[source]▶
There was also a fatality in the last workplace strike.

Deere seems to have bad relations with their employees, customers, and regulatory bodies.

The shareholders should remove the board of directors.

https://www.desmoinesregister.com/story/money/business/2021/...

replies(4): >>41882429 #>>41883250 #>>41883570 #>>41884505 #
onlyrealcuzzo ◴[18 Oct 24 19:02 UTC] No.41882429[source]▶
The shareholders don't care about any of that if they think the board did a decent job of propping up the stock price.

Firing a board is generally risky, and the shareholders probably haven't fired them because even though the board has, almost objectively, not been good - firing them is likely even worse for the stock short term, and there aren't a lot of long-term, active investors left in the world.

replies(3): >>41882589 #>>41883100 #>>41885612 #
fny ◴[19 Oct 24 04:21 UTC] No.41885612[source]▶
The myth that shareholders largely care about short-term returns has been disproved empirically over the last 30 years. Every mammoth stock exploded due to assumptions about revenues far, far into the future (dotcom stocks, FATMANG stocks, crypto.) And this should come as no surprise: company valuations are the discounted value of future returns after all.

More often, companies shill bullshit, inestimable long-term growth (AI-bullshit for example) to pump price. Tesla is the poster-child of this strategy.

In contrast, short-term thinking/marketing is a sure fire way to annihilate a stock. Why would the next buyer pay a premium for a squeezed orange?

The dark reality is that most things we customers and employees complain about as “short-term thinking” are tremendously profitable over the long run.

replies(3): >>41885698 #>>41886662 #>>41887956 #
1. whatshisface ◴[19 Oct 24 14:31 UTC] No.41887956[source]▶
Combining growth momentum from a past net-value-positive offering with revenue from a net-value-negative product change to project a future that will disappear when your users find your first competitor is an example of that strategy playing out that is difficult for shareholders to catch. Another is laying off and mistreating your employees while claiming that you're going to stay on the cutting edge.

It's not in the interest of shareholders to buy into tactics that pump up share price at the end of a quarter but we're talking about an information disadvantage; the seller is rearranging their books with respect to intangibles to deceive the buyer.