• Altima NEO
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    2101 year ago

    Being privately held helps a ton. Gabe is his own boss. Once a company’s public they’re beholden to the investors, and investors want big short term returns so they can dump their stock and move onto the next one.

      • @[email protected]
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        401 year ago

        Yep. Investing should tie you to a stock for at least a year - as soon as you decide to sell, the one-year timer starts.

        • @[email protected]
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          01 year ago

          Why is trading stocks even allowed? Seems like a net loss for basically everyone, except the ultra-wealthy.

          • @[email protected]
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            181 year ago

            Stocks = certificate of ownership in a fraction of a company. The basic principle is sound and goes back at least to the Renaissance, it’s everything else around it that sucks and creates a plethora of perverse incentives that benefit the capital owners.

            Company stocks are not unique there, it’s the most common example but the principle extends to every commodity. You can buy virtual coal or gold right now if you want and sell later, without actually having coal delivered to your doorstep. This is actually a very important market mechanism when it works right because it allows the market to internalize external forces, reducing risk. European energy providers learned this the hard way when prices shot through the roof in 2022 and they were buying gas at “current prices”, leading to funds drying up unexpectedly sometimes to the point of bankruptcy, rather than buying gas at “future prices”, guaranteeing deliveries that were paid for months in advance. When it works well, speculation is actually an inescapable tool of complex modern economies. Without it you cannot maintain supply chains fit for the modern world, as speculation (when not abused) is the market’s way of accounting and preparing for the expected future.

            Even in a communist society, you’d need stocks: the disagreement then becomes whether the state should own (part of) the stocks, or if the workers should own all the stocks (legally equivalent to the means of production).

            • @[email protected]
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              11 year ago

              Oh huh, neat. Thanks for the write-up! Basically the only thing I know about stock trading comes from family members trying to convince others to buy meme stocks, so I don’t really have a high opinion of the craft.

    • @[email protected]
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      191 year ago

      I truly fear the day Gabe passes on. Do we know who would own Valve if Gabe were to pass on today?

    • Sparking
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      51 year ago

      I think it is a little more complicated than that. You go to public markets to raise cash. Sometimes you can get the cash you want, sometimes not. The issue is when you are incentivized to make the stock price go up at all costs. If you don’t need the cash, there is no point to having a higher stock price - lower is somewhat better.

      Now, if you are a CEO, and you are paid in stock options, you are going to do whatever you can to maximize the stock price. Even if it is bad for thebling term health of the company. I don’t think the public markets care either way.