> “They’re generating unprecedented amounts of free cash flow,” Cembalest told me. “They make oodles and oodles of money, which is why they can afford to be pouring hundreds of billions of dollars of capital spending each year into AI-related R&D and infrastructure.”
IMO this should be a trigger for investors that they have not been receiving their profits, and instead the profits are being dumped into CEOs next big bets that will fuel their stockbased compensation gains. Also to blame is the government's culpability here for creating both tax incentives and a lack of laws that say profits must be returned as dividends (they can always be DRIP'd back into the company as new shares if desired, it's absurd to say its better for investors, when the alternative actually gives more choice).
IMO this should be a trigger for investors that they have not been receiving their profits, and instead the profits are being dumped into CEOs next big bets that will fuel their stockbased compensation gains. Also to blame is the government's culpability here for creating both tax incentives and a lack of laws that say profits must be returned as dividends (they can always be DRIP'd back into the company as new shares if desired, it's absurd to say its better for investors, when the alternative actually gives more choice).