Subject: Re: Dear Mr Buffett, and your letter next week.
"Umm suggested:
Any company where the CEO and BoD does things purely to influence the price of the stock is not a company a person should want to invest in. If the BoD and CEO are willing to influence the price of the stock through a dividend, what other methods are they using to influence the price of the stock that you do not know about?"
"Not at all sure why everybody is just going along with this.
The only reason a CEO and a BOD should not do something that will raise the price of the stock is if in the longer run it will lower the price of the stock!" - Ralph
I think you missed the phrase "purely influence".
Of course the CEO and board should do things that will raise the price of the stock, like grow revenues and earnings, etc. That isn't what I was talking about though. I was talking about doing things that are not about the business, but are instead done just to influence the price of the stock.