I was just perusing all the web has to offer and I come across this quote by CEO of Google, Eric Schmidt:
One of the problems in high-tech industries is that successful companies tend to generate cash pretty liberally (but) they don't have good places to put it."
<sarcasm>I really know what he means. It must be hard being the 52nd richest American in the world, with a net worth of $4 billion dollars and growing. And he's the CEO of the (currently) most popular software company ever, driving the information age into whatever comes next. With so much wealth (personally and in business), he really carries the burden for all of his employees, stock holders, and the public as a whole. Thanks for taking one for the team Eric!</sarcasm>
If he's having trouble figuring out what to do with that money, I can think of a few things :)
1 comment:
Cut the crap Nick. A publicly traded company has an obligation to the shareholders to give a good return on their investment. But, a highly successful company like Google is going to have a hard time reproducing their returns and growth in the future.
I was pissed at the Sears CEO a few years ago when the only thing he could think of doing to support shareholders was buying Sears stock. It showed that he and his management team did not know how to improve the business.
Google is improving their business in incredible ways. Lots of new ventures and software coming out, a willingness to take reasonable risks (even letting employees pick a day a week project to work on their own)!
But he thinks he cannot just turn around, take some of the huge cash on hand that they have and buy into another company -- either purchase outright or invest in stock. The problem is, it is hard to find another company that he thinks will do as well as Google in the long run.
Give him a break. Maybe put together your ideas for for a new business and give that to him. He is sitting on a pile of cash and wants it to work. So, tell him you know a way for a piece of it to work...
See you in August.
Post a Comment